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Home Science & Environment Environmental Policies

Efficiency tax credits helped 350,000 new homes be more energy efficient in 2023

February 5, 2025
in Environmental Policies
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Efficiency tax credits helped 350,000 new homes be more energy efficient in 2023
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Tax credits that help cover the added up-front costs to developers who build energy efficient new homes are saving energy and improving the stability of our electric grid according to new analysis released by the American Council for an Energy Efficient Economy (ACEEE).

Living in the more efficient homes is expected to reduce homeowner energy bills by about $450 per year. The efficient homes are also expected to reduce peak electricity demand by 1,800 MW by 2032, equivalent to the power output of three large 600 MW power plants.

“People want efficient homes, but upfront costs can be an obstacle,” said Johanna Neumann, Senior Director of the Campaign for 100% Renewable Energy at Environment America Research & Policy Center. “Tax credits are making it easier for homebuilders to offer their customers cleaner, healthier, more efficient options.”

In 2024, the tax credit assisted with the construction of nearly 350,000 homes. ACEEE estimates that the tax credit will spur the construction of over three million qualifying homes between now and its scheduled expiration in 2032.

Tags: CreditsEfficiencyefficientenergyhelpedhomestax
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