8 ways the Inflation Reduction Act can save you money


Written by:


What if you could fight climate change and save money at the same time?

The combination of rebates and tax credits included in the recently passed Inflation Reduction Act help you do exactly that. In fact, one analysis estimates that the new law’s residential tax credits alone could save more than 100 million households $37 billion a year on their energy bills.

We found eight places around your home where you could start saving money.

1. In the driveway

Beginning in 2023, the new law rewards qualifying electric vehicle buyers with a tax credit of up to $4,000 for the purchase of a used EV and up to $7,500 for a new car. In 2024, the credit will be issued through dealerships at the time of sale — and since some models already sell for less than $30,000 — it makes EVs cheaper than ever, especially when you consider that the average household spends hundreds of dollars per month on gasoline. There is one caveat: EVs must have final assembly in North America to qualify, so some brands will not be able to offer the credit until their North American plants begin operating.

2. At your thermostat

Natural gas prices have taken consumers on a wild ride over the past few years, with some households facing astronomical heating bills during winter storms. The clean energy incentives in the Inflation Reduction Act tackle this problem by supporting a grid-wide move to cheaper, cleaner sources of electricity, reducing both the cost to consumers and pollution. That means a typical American household will save up to $220 per year over the next decade without having to change a thing.

3. In the utility room

To green your home’s infrastructure, the new law offers rebates to help defray upfront costs, prioritizing funds for families with low and moderate incomes. For example, consumers who invest in an energy-efficient heat pump water heater will be eligible for a rebate of up to $1,750. An upgraded breaker box (to help prepare for an all-electric home) may be eligible for a $4,000 rebate. (However, it’s important to note that, even with the rebates, advocates worry that some households still will not be able to afford efficiency upgrades.) To find out which discounts, rebates and tax credits your household is eligible for, consult this online calculator.

4. In the kitchen

A Stanford University study recently found that gas stoves leak methane, a potent greenhouse gas, even when they aren’t being used. The researchers estimated that stoves across the U.S. emit as much climate pollution as about 500,000 gas-powered cars. So, if your stove is reaching the end of its useful life, consider replacing it with an electric model. The Inflation Reduction Act provides for a rebate of up to $840 for an electric stove, cooktop, range or oven to make the purchase more affordable.

5. In the insulation

Adding insulation is a tried-and-true way to prevent wasted energy and save money. With the passage of the Inflation Reduction Act, some households are now eligible for a rebate of up to $1,600 just for improving their home’s insulation and sealing energy leaks — and that’s on top of the savings better insulation will yield on monthly utility bills. (The rebate for households with moderate incomes covers 50% of these costs). Find out if you qualify here.

6. In the laundry room

Heat-pump clothes dryers, which are popular in Europe, but rarely used in the U.S., are an energy-efficient alternative to traditional dryers. Instead of releasing warm, humid air outside, a heat pump dryer sends moist air through an evaporator, and then recirculates the dry hot air. The process takes a bit longer to dry clothes but only uses about half the electricity. The new law encourages consumers to switch to an electric heat pump dryer with a rebate up to $840. Check if you’re eligible here.

7. At the AC unit

Air conditioners voraciously devour electricity. What if there was a more efficient way to cool your home? Consider a heat pump. It uses five times less energy than an air conditioner and can both heat and cool your home. Households can qualify for a tax credit of up to $2,000 for the purchase of an electric heat pump. And for households with low incomes, the new law provides a rebate of up to $8,000 on installation. (For the tax credit program, the incentives apply to equipment installed on January 1, 2023, or later.)

8. On the roof

There has never been a better time to add solar panels to your home. The Residential Clean Energy Credit included in the new law provides a tax credit of up to 30% to households that invest in clean energy such as solar, and it’s retroactive to the beginning of 2022. Considering that the average cost of installing a residential rooftop solar-powered system is about $19,000 — that’s $5,700 in savings. Beyond that, the average solar-powered home saves about $300 every year on electricity.

This article originally appeared on EDF.org and was syndicated by MediaFeed.org.

More from MediaFeed:

Is inflation spiking your grocery bill? Here’s how to save


If you feel like grocery shopping has become more expensive, you’re not imagining things! According to the Bureau of Labor Statistics, food prices rose 2.6% in 2020. That’s the biggest increase in nearly 50 years.

Whether the pandemic is the reason you’re spending more on food or you’ve just never taken the time to figure out a money-saving strategy for your grocery bill, now is the perfect time to turn that around. These smart grocery bill hacks will save you time and help you keep your hard-earned bucks in your wallet without the hassle of clipping coupons.

SPONSORED: Find a Qualified Financial Advisor

1. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes.

2. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.


gorodenkoff / istockphoto


Hands down, the easiest way to save thousands of dollars each year on your grocery budget is to get on board with meal planning. No matter the size of your family, when you take time to plan your meals you’ll always be ahead of the grocery game. Having a plan, and a shopping list to match, will not only save time, but you’ll be less inclined to buy things you don’t need. Bonus: You won’t have to waste gas on extra trips because you forgot to pick up a key ingredient.


Related: Online grocery shopping is here to stay. Here’s why


Extreme Media / istockphoto


A free meal planning app will eliminate the guesswork. Two of my favorites are Spoonacular, which syncs with your google calendar, and Yummly, where you can search for recipes based on meal course (such as entree or side), prep time, or fun new menu trends.




You don’t need to have tons of extra space in your home to have a well-stocked pantry. You know what your family loves to eat, so make sure you always have the basic ingredients (like pasta, rice, seasoning mixes, and more) on hand. If you always have the basics to whip a meal together, you’ll be less likely to opt for pricey take-out. So, before you make your weekly grocery list, shop your shelves first. What do you have that you could use in your meal plan this week? What’s running low?




Take advantage of sales to stock up. My rule of thumb for sale items is to buy one to use now and two for later. Just make sure you’re buying versatile, family-tested items you know you’ll use. Impulse items might end up abandoned on a pantry shelf long past their expiration date.


Drazen Zigic / istockphoto


My grandmother taught me early to take advantage of seasonal produce. Whether it was berry-picking season or time for autumnal root-veggies—nature always provided a palate of seasonal goodness. As tempting as it is to buy juicy strawberries in January, you’ll likely pay more for out-of-season produce. Pay attention to mother nature’s timetable.




Grocery stores have scales for a reason! I can’t tell you how many times I thought I could eyeball a bunch of cherries or a few heads of broccoli only to find that I bought way more than I needed.


VLG / istockphoto


Your friendly grocer stocks the oldest products at the front of the shelves so they’ll get purchased before they expire. If you’re using that produce in a meal soon, go ahead and grab from the front. But if you’ll need to store your produce for a while, reach in and grab from the back to get something fresher that will last longer in your fridge or pantry.




Of course, fresh produce is great! But don’t be afraid to buy from the “reduced” section in your favorite store. Bell peppers, tomatoes, bananas—there is always something that needs to be used immediately. If you’re going to use bell peppers in tonight’s recipe, go ahead and get the ones that are marked down for a quick sale. They’ll still be fresh and tasty, but you’ll save money. You’ll also make sure that produce doesn’t end up wasted when your grocer has to discard it.




As tempting and timesaving as the pre-cut straw carrots or apple wedges are, you’re probably paying way too much for the convenience. Buy the whole fruit or veggie and take a few minutes to prep yourself.


Pedro_Turrini / istockphoto


Freezing meals, leftovers, and fresh produce reduces waste and saves time and money, so keep the necessary supplies on hand. You’ll need sealable storage containers and bags. (Bonus points if they’re reusable—you’ll be both frugal and eco-friendly!) Have masking tape and markers on hand to date and label your items so you won’t have mystery contents taking up valuable space.  I keep a simple freezer inventory sheet on a magnet on my freezer where I note the date and the item that was frozen.

SPONSORED: Find a Qualified Financial Advisor

1. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes.

2. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.




Some surprising items that freeze beautifully: whole avocados, breadcrumbs in canisters or bags, dairy products such as cream cheese, sour cream, yogurt, shredded and sliced cheese, pancake mix, nuts, chocolate chips, hummus, or even premade peanut butter and jelly sandwiches. Soups and sauces freeze well in Mason jars (be sure to leave one or two inches at the top of the jar for expansion.) Buy chicken breasts and other meats in bulk when on sale and slice and bag individually in marinades or plain. Even cake mixes and containers of frosting freeze well.


Related: Zero-waste grocery shopping. What it is & why you need it




Batch cooking means making a double batch of a favorite recipe. You serve one batch and freeze the other. This technique requires planning and some extra work up front, but the reward is having a variety of your family’s “go-to” recipes available in a pinch. Betty Crocker has a helpful article full of great tips: Thirty Day Batch Cooking. I learned about batch cooking during my early pregnancies. The time and energy, and indeed the money I saved by employing this technique, was priceless.


monkeybusinessimages / istockphoto


Many come from the companies you already love.


RapidEye / istockphoto


These are items reduced for a quick sale. They’re still safe to eat, of course. Or you can add them to your freezer stockpile.


JackF / istockphoto


You’ll be able to take advantage of digital coupons or sales you didn’t see in your flier.


This is when most stores offer their weekly deals.





You’ll be able to see your order tally right before your eyes, and you won’t be as likely to make impulse purchases.


FamVeld / istockphoto


This is like putting free money in your pocket every time you shop. Simply scan your receipts each time you shop and you’ll earn rewards and bonuses that you can cash in for gift cards at Amazon and your other favorite online shopping sites.


industryview / istockphoto


Several years ago, I switched to shopping with cash. Knowing I have a set budget helps me stick to my grocery list. And speaking of grocery lists …


RoschetzkyIstockPhoto / istockphoto


You’ll buy stuff you don’t need and forget stuff you do! Pinterest has lots of free templates to get you started.



This article originally appeared on QuickAndDirtyTips.com and was syndicated by MediaFeed.org.





AaronAmat / istockphoto


Featured Image Credit: Ladanifer/iStock.