U.S. Consumers Save $8.4 Billion On Clean Energy and Energy Efficiency Investments During 2023

The U.S. Treasury Department on Aug. 7 reported that over 3.4 million U.S. consumers benefited from $8.4 billion in tax credits to reduce the costs of clean energy and energy efficiency enhancements to their households during 2023. This is the first public release of data from 2023 tax filing displaying the benefit of clean energy tax incentives established under the 2022 Inflation Reduction Act, or IRA.

Data from the U.S. Internal Revenue Service illustrates clearly how the IRA is accomplishing its goal in reducing both the upfront expenditure of clean energy and energy efficiency investments and monthly utility expenditures for U.S. households. During 2023, following the enactment of the IRA, the number of U.S. households taking advantage from these expanded credits for energy efficiency investments rose by nearly one third compared to the 2021 tax year and the total value of credits rose by nearly two thirds.

The IRA extended and enhanced the Energy Efficient Home Improvement Credit, which provides a total credit of up to $1,200 yearly. Moreover, the act extended the Residential Clean Energy Credit, so that households will continue receiving tax credits to cover up to 30 percent of the costs of installing battery storage, rooftop solar, and other appliances up until 2034.

U.S. households saved on the initial costs for home improvements and will save on their energy bills for the foreseeable future. U.S. families have claimed over $6 billion in credits for residential clean energy enchantments on 2023 tax returns filed through May 23, 2024. U.S. households have also claimed more than $2 billion for energy efficient home enhancements during the same time period.

Over 750,000 U.S. households have claimed investments in residential solar power, while 250,000 have claimed investments in gas or electric heat pumps. Moreover, close to 700,00 families have claimed investments in air sealing and insulation.