The Inflation Reduction Act (IRA), which was passed in August of this year, will have an enormous impact on communities across Utah. The IRA aims to lower energy costs of households and businesses, create more manufacturing jobs for US workers, and create a healthier, cleaner, and more secure future.
The most immediate effect the IRA will have for our customers comes from provisions for $369 billion to help lower climate pollution in half by 2030 with clean energy investments. This will create tax credits and rebates to make it easier to purchase high-efficiency HVAC equipment.
This comes at an opportune time, as the new SEER2 restrictions for air conditioning and heat pump systems will go into effect on January 1, 2022. SEER2 requires new testing and measurement standards for HVAC equipment to improve their efficiency. Costs for equipment may increase by 20–30% due to the SEER2 standards.