2.3 million families used efficiency tax credit to reduce energy costs in 2023

More than 2.3 million American families took advantage of tax credits in 2023 to help cover the up-front cost of adding insulation or air sealing, installing advanced windows and doors, and installing efficient air conditioners among other efficiency improvements. Those investments are saving families an average of $130 a year in energy costs according to analysis by ACEEE.

“Although efficiency improvements pay for themselves over time through utility bill savings, upfront costs remain a barrier. Tax credits lower that barrier,” said Johanna Neumann, Senior Director of the Campaign for 100% Renewable Energy at Environment America Research & Policy Center. “When families save energy, it’s good for them and their neighbors because using energy wisely reduces pollution and eases the strain on the electric system we all depend upon.” 

The efficiency measures installed in 2023 with the help of the tax credit are expected to save as much energy as is used to power 125,000 homes. By their scheduled expiration in 2032, the credit is projected to cut peak electric demand by 3400 MW, equal to the power output of more than five large 600 MW power plants.