Floridians saved hundreds of millions of dollars last year by switching to renewable energy or using federal inflation-fighting tax rebates to make their homes more energy efficient.
Aug. 16 marked the two-year anniversary of the IRA, the federal government’s largest investment in clean energy and climate action.
The use of non-renewable energy and fossil fuels releases greenhouse gases into the atmosphere that cause global warming, leading to warmer air and water temperatures, which in turn drier some parts of the country and wetter others, resulting in more rapid and intensifying hurricanes.
Tax credits available
The Residential Clean Energy Tax Credit in an IRA allows Americans to get 30% of the cost of installing solar power and other renewable energy technologies reimbursed. More than 165,800 Floridians have claimed the credit, saving $715 million in taxes. In fact, Florida ranks third in the nation for solar power generation, behind only California and Texas.
There’s also the Energy Saving Home Improvement Credit, which provides a tax credit of up to $3,200 for the installation of more efficient windows, insulation, heat pumps and other energy-saving improvements. More than 154,400 Florida residents have applied for this tax credit, saving them $131 million.
The nonprofit group Environment Florida analyzed Internal Revenue Service data and found that 13,000 Floridians doubled their energy savings and claimed both tax credits.
Overall, more than 300,000 Floridians claimed more than $845 million in tax credits on their 2023 tax returns.
“This means Floridians are slowly improving their homes and moving toward cleaner energy and more sustainable practices,” said Mia McCormick of the nonprofit group Environment Florida.
She said there’s no need to worry if you missed out last year: Not only will the same tax credits be available for the next decade or so, but Florida will also begin distributing home energy discounts from $346 million in IRA funds recently approved by Gov. Ron DeSantis.
Florida’s Whole Home Rebates (HOMES) program offers single-family and multifamily households rebates for efficiency upgrades that are projected to save at least 20% on their home’s energy use.
There is also Florida’s Residential Electrical and Appliance Rebate (HEAR) program, which helps low- and moderate-income households purchase high-efficiency appliances.
Both of these Florida-specific programs are scheduled to be implemented in 2025.
Updated Home Appliance Standards
And if you’re considering purchasing energy-efficient appliances, updated federal standards could save you $113 a year on your energy bills over the next 20 years.
That’s according to an analysis by the Environment Florida Research & Policy Center, the Public Interest Research Group and the Appliance Standards Awareness Project.
The U.S. Department of Energy under the Biden administration has updated efficiency standards for about two dozen products, ranging from refrigerators and water heaters to commercial air conditioners and electric motors.
Small businesses such as restaurants and convenience stores are also expected to benefit, as well as larger corporations that own larger commercial buildings and industrial facilities.
“Collectively, companies could save an average of $145 million per year if they switch to these new devices,” McCormick said.
The new efficiency standards are meant to cut pollution from nitrogen oxides and sulfur dioxide, which cause respiratory problems, especially in children, the elderly and asthma sufferers.
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