Recent executive orders from the Trump administration could have a big impact on homeowners looking to make energy-efficient upgrades. These actions—one pausing rebate programs under the Inflation Reduction Act (IRA) and another withdrawing the U.S. from the Paris Climate Agreement—may change the incentives available for HVACR improvements. If you're planning to upgrade your heating and cooling system, here’s what you need to know.
Energy Efficiency Rebates on Hold: What It Means for Homeowners
The “Unleashing American Energy” executive order temporarily halts federal funding for energy efficiency programs under the IRA and the Infrastructure Investment and Jobs Act (IIJA). This affects rebate programs designed to help homeowners save money on high-efficiency HVAC installations.
If you live in one of the 11 states or Washington, D.C., where rebate programs have already launched, your rebates are likely safe due to existing agreements with the federal government. However, if your state was recently awarded funds—especially the $3.7 billion announced last week—there’s a chance those rebates will be delayed or revised.
What homeowners should do now
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Check with your state’s energy office to confirm the status of rebate programs before making purchasing decisions.
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Consider alternative savings options, like energy efficiency tax credits, which remain unaffected and provide up to $3,200 per year for heating and cooling upgrades.
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Act quickly if rebates are still available since future funding is uncertain.
While this pause does not mean these programs are permanently canceled, the new administration is reviewing the guidelines and could make adjustments. Some lawmakers have even suggested redirecting these funds to other priorities, so it’s best to secure rebates while they’re still accessible.
U.S. Withdraws from Paris Climate Agreement: What It Means for Energy Policies
The second major policy change is the “Putting America First in International Environmental Agreements” executive order, which withdraws the U.S. from the Paris Climate Agreement. This global accord, established in 2015, encourages countries to take voluntary steps to reduce carbon emissions and promote energy efficiency.
For homeowners, this shift may indirectly affect domestic policies related to energy efficiency standards, utility costs, and future rebate opportunities. While the Paris Agreement itself doesn’t impose direct costs on individuals, it has influenced government incentives aimed at reducing energy consumption. A rollback in climate commitments could lead to changes in efficiency regulations that impact the cost and availability of energy-saving products.
How homeowners can stay ahead
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Monitor changes in energy efficiency regulations, as they may affect the long-term savings on HVACR systems.
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Look for state or utility-level incentives, which may continue to offer rebates and low-interest financing for energy-efficient home upgrades.
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Work with trusted HVAC contractors to find the best solutions for improving home energy efficiency despite shifting policies.
Take Action Before Policies Change
With rebate programs in question and climate policies shifting, homeowners should act now to take advantage of available incentives. Tax credits remain a strong option, and state-level programs may still provide financial relief for energy-efficient upgrades. Staying informed and working with knowledgeable HVAC professionals will ensure you make the best decisions for your home and budget.
Check back for updates as these policies continue to evolve.
If you live in the Delaware Valley/Greater Philadelphia area and would like to find comfort within your home, visit our website or give us a call at 215 - 245 - 3200 to learn more.
