How Can Energy Efficient Fixtures Help You Save?
Electrical contractors have benefited immensely from the reduced costs of the more efficient light fixtures. And that same benefit has been passed on to clients, especially large-scale clients such as industrial and commercial buildings, public properties, skyscrapers, and more.
In the early days of newer energy-efficient fixtures, the benefits offered by these fixtures came with a hefty price tag, particularly for large-scale projects. Thankfully, this is no longer the case, in part due to the tax rebates that the US (and almost every other) government offer on a federal and state level for the purchase and use of more efficient lighting fixtures.
So let’s discuss some details about the rebates and incentives offered by the government for energy-efficient fixtures in 2022 and beyond.
Taking a Look At The Tax Rebates
The Edison Foundation Institute for Electric Innovation has stated that energy efficiency has now become a critical element for the ever-expanding commercial and industrial landscape that the new (post-pandemic) world has brought forth.
As consumers now have more and more options to consider, the electric power sector is keenly looking toward governments for incentives that will help them meet the increased demand while decreasing the risk of failure and overloads.
The solution: tax rebates for the purchase of equipment that offers the same, if not better, utility to consumers, while using less energy. This energy efficiency has also expanded to include a range of fixtures, such as:
- Better lighting
- Smart thermostats
- Energy managing HVAC systems
- Reliance on renewable energy
- Better energy storage, and more.
The rebates that companies and individuals can enjoy differ with respect to the type and nature of equipment purchased.
Residential Technologies Eligible For Tax Rebate
The most prominent rebate from 2022 to 2023 for residential electrical systems such as apartment buildings and skyscrapers is for Renewable Energy Systems; particularly those that utilize solar photovoltaic (PV), wind, geothermal, hydro, biomass, or certain renewable technologies.
These tax credits for 2022 amount to 25% of the cost or $800, whichever is less. For 2023, the maximum tax credit would be $400.
Commercial Technologies Eligible For Tax Rebate
For commercial installations, the tax credit would be refundable, standing at 10% of the total cost or $50K (the lower amount is applicable). The same applies to industrial technologies that use commercial solar energy systems, wind, geothermal, hydro, biomass, or other renewable technology.
Lighting fixtures that are more energy efficient, regardless of the energy they use are also applicable for said tax rebate(s).
You will need to pay $15 as an application fee, as per Utah Code 63M-4-401 (paid via credit card). Electrical contractors such as Skyline Electric can help you pay this fee, fill out the application, and do more as needed to ensure you get the benefit you seek. Get in touch with us and let us help you achieve your budgetary and electrical goals, starting today!