Floridians saved hundreds of millions of dollars last year by switching to renewable energy or by making their homes more energy efficient through tax rebates from the federal Inflation Reduction Act.
Aug. 16 marked the two-year anniversary of the IRA, which is the largest federal investment in clean energy and climate action.
The use of non-renewable energy and fossil fuels burns planet-warming greenhouse gases into the atmosphere, leading to warmer air and water temperatures. That makes some areas of the country drier and others wetter, and allowing hurricanes to rapidly intensify.
Tax credits available
Through the Residential Clean Energy Tax Credit within the IRA, Americans can get reimbursed 30% of the cost of installing solar or other renewable energy technologies. More than 165,800 Floridians claimed this credit, saving $715 million on their taxes. Florida actually ranks third in the nation for solar generation, behind California and Texas.
There’s also the Energy Efficient Home Improvement Credit, which provides tax credits of up to $3,200 for installing more efficient windows, insulation, heat pumps and other energy-saving improvements. More than 154,400 Floridians claimed this tax credit, saving $131 million.
The nonprofit Environment Florida analyzed Internal Revenue Service data showing that 13,000 Florida residents doubled down on the 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.
"It means that Floridians are slowly getting on board with making these improvements to their homes and moving towards more clean energy and sustainable practices,” said Mia McCormick, with the nonprofit Environment Florida.
She said if you missed out last year, not to worry. Not only are these same tax credits going to be available for the next decade or so, but Florida will start distributing home energy rebates from a $346 million IRA pot Gov. Ron DeSantis recently accepted.
Florida’s Whole Home Rebates (HOMES) Program will provide single-family and multifamily households with discounts for efficiency upgrades that are predicted to save at least 20% of the home’s energy use.
There’s also Florida’s Home Electrification and Appliance Rebates (HEAR) Program, which is exclusively for low- and moderate-income households to purchase high-efficiency equipment.
Both of these Florida-specific programs are planned to be rolled out in 2025.
Updated appliance standards
And if you’re thinking about purchasing an energy-efficient appliance, you could save $113 annually on utility bills over the next two decades because of updated federal standards.
That’s according to an analysis by Environment Florida Research & Policy Center, 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, from refrigerators and water heaters to commercial air conditioners and electric motors.
Small businesses, like restaurants and convenience stores, and larger businesses that own bigger commercial buildings and industrial facilities, are also expected to benefit.
"Collectively, they could save an average of $145 million a year if they switch to these new appliances in their businesses," McCormick said.
The new efficiency standards are supposed to cut nitrogen oxides and sulfur dioxide pollution, which both contribute to respiratory conditions — particularly in children, the elderly and those with asthma.
