Cuts to home energy credits will make updates more costly
The climate law passed during former President Joe Biden’s term included tax credits for systems and projects at home — like solar and batteries — that save homeowners money over time and significantly cut greenhouse gas emissions.

These systems have gotten cheaper over the years but they’re still hefty upfront expenses that some homeowners would struggle to absorb without the credits. An average rooftop solar installation can run $20,000 or more; the credit has covered almost one-third of that. An average heat pump typically costs several thousand dollars; the tax credit reimbursed up to 30% of the cost, or $2,000.

The U.S. Treasury Department said more than 2 million families claimed more than $2 billion of the credit for upgrades such as windows, insulation, heating and cooling systems in tax year 2023 returns. More than 1.2 million families claimed more than $6 billion in the credit for solar installations, solar water heating, geothermal heat pumps and battery storage and other improvements that same year.

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