3.4 Million Americans Used Clean Energy Tax Credits in 2023

The Treasury Department has reported a significant increase in the utilization of tax credits aimed at reducing utility bills, with claims rising nearly one-third compared to the previous year. In 2023, American families accessed over $6 billion in residential clean energy credits and more than $2 billion for energy-efficient home improvements. Households that installed residential solar energy systems reported median annual savings of $2,300, while those upgrading to efficient heat pumps could save between $600 and $3,100 annually, depending on the systems replaced. Treasury Secretary Janet Yellen emphasized that the Biden-Harris Administration's primary economic focus is to lower costs for American families. She stated that the Inflation Reduction Act is instrumental in making home energy upgrades more affordable, thereby reducing monthly utility expenses. Yellen noted that the law has benefited over 3.4 million families, enabling them to save hundreds or even thousands of dollars on their utility bills for years to come. The data released by the Treasury indicates that the Inflation Reduction Act is successfully achieving its objectives of lowering both the upfront costs of energy and the expenses associated with energy efficiency investments. Research from U.S. national labs supports the claim that consumers who adopt these upgrades can realize substantial savings on their utility bills. The Act has extended and expanded the Energy Efficient Home Improvement Credit, providing tax incentives for various energy efficiency upgrades. Over 750,000 families claimed credits for residential solar electricity, while more than 250,000 utilized credits for heat pumps, and nearly 700,000 families invested in insulation and air sealing.