Energy Efficiency Improvement Tax Credits in 2024

2024 Home Energy Efficiency Tax Credits

SAVE big this year with 2024's Home Energy Efficiency Improvement Tax Credits

GOOD NEWS has arrived for many of our wonderful clients who live in the beautiful mountains of Western North Carolina!  Energy Efficiency Tax Credits have improved more than 300% OVER last year!  This accounts for a total tax credit available up to $3,200 to make your home more energy efficient, comfortable, and healthy this year.  Did I also mention, you can use these tax credits to significantly reduce your carbon footprint?

$3,200 is the the maximum energy efficiency tax credit an individual or family can claim per year

If you are looking for ways to make your home more energy-efficient while also saving money on taxes Conservation Pros is here to help you with that.  As we gear up for 2023, we want to remind you of the available tax credits for homeowners who complete energy efficiency improvements on their primary residence, and offer our services which can help you achieve your home improvement goals this year.

STEP 1 - ENERGY AUDITS - $150.00


If you haven’t had a home energy audit, now is the perfect time to get one. Not only will it help you identify where you’re wasting energy and where you can utilize tax credits in 2024, but you’ll also receive up to a $150 rebate for completing the audit!  Go to our Energy Audits page to learn more about the costs and the services provided from an energy audit.  Home Energy Audits provide you more than just opportunities to save energy by unplugging appliances and replacing heating units. OUR BPI Certified Energy Auditors can reveal untold stories of building performance that lay out a blueprint which prioritizes the significant over the not-so-important improvements to your home’s energy efficiency, comfort, and air quality!  Hint: You might be surprised to learn you often don’t have to replace all your old windows.

insulation, home energy, energy use, Asheville, Fairview



For those looking to upgrade their home insulation, there’s some great news. The government is offering a tax credit of 30% of the material costs for building insulation upgrades with a cap of $1,200 per year.  This insulation tax credit in 2024 includes insulation, weatherstripping, and house wraps.  A typical attic insulation and air sealing often might utilize $500-800, but sometimes might utilize the entire rebate.  Encapsulated crawl space systems are not exempt from this rebate as long as significant insulation improvements are included.  Conservation Pros Crawl Space Encapsulation system typically qualifies for the entire $1,200 rebate.  Since we are the only company in the area that specializes in crawl space encapsulations that save energy, we typically do include insulation upgrades in our crawl space encapsulations!



Another significant area where you can save on taxes is with the installation of high-efficiency water heaters. The government is offering a tax credit of 30% of the cost of heat pump water heaters up to $2,000/year or gas water heaters up to $600.  BUT HOLD ON – Typically, installing one heat pump water heater wouldn’t qualify you for the whole rebate unless the material costs of the water heater exceeded $6,000.00!  If you look at retail costs, a household water heater only costs about $2,000 which would qualify you for a tax credit of $600.00 .  Contact us – if you want a referral for a local plumber who could help provide you with an estimate for this service.

STEP 4 - HEAT PUMPS AND MORE - $2,000.00


Read to the end and find another $600 in rebates for a heat pump upgrade. 

Homeowners who install high-efficiency heat pump systems or biomass fuel stoves are eligible for a tax credit of up to $2,000 per year. If you prefer high-efficiency furnaces and boilers, you would only receive a tax credit of up to $600 per year.  Your heat pump must meet certain efficiency requirements (Learn more on  Now, why is this STEP 4? Well I have two important points about ROI:

  1. Currently in Asheville the cost of natural gas heating is lower than electric based heat.
  2. Energy audits, and insulation improvements cost less and save you more than a typical HVAC replacement.
  3. An HVAC system upgrade often costs in excess of $10,000.00 particularly when you need to replace the ductwork.  Trust me, you should always have your duct work inspected first!

Finally, if you’re upgrading to a heat pump to replace a gas furnace, you may need a qualifying Electrical Panel Upgrade. The good news is that the government offers a tax credit of 30% of the cost of this upgrade up to $600 on top of the up to $2000 credit!

This year the building science nerds, energy gurus, and DIY homeowners alike can celebrate a win.  Finally, the middle and above classes have some funding to help them make their homes more energy efficient, comfortable, and environmentally friendly.  These improvements will touch many families quality of life issues at home and allow homeowners hold on to a little more of their well deserved dollar this tax season.  Previous insulation tax credits of up to $300 didn’t move the needle for the retrofitting industry, but $1,200 is much more useful to homeowners.

If it still isn’t enough to move the needle for some homeowners out there, stay tuned!  There will be more energy efficiency incentives coming by the end of the year so keep those fingers crossed!

Thanks for reading my article!  It’s time to get back to work on This Cold House. – Harper Robinson