Making major investments in sustainable alternatives like buying an electric car or electrifying your house can be expensive. Here are ways to finance these without breaking the bank!
Perhaps the costliest investment of them all, electric vehicles today are still more expensive than your average gasoline powered car. Fortunately, there are federal and state tax incentives for electric vehicle purchases that decrease the price of most electric vehicles. Additionally, the cost of ownership is much lower compared to gas cars, which is important to keep in mind. We discuss why that is in more detail here. There are plenty of options for monthly payments, leases, and other incentives for EVs, all of which are contingent on the automaker, state, and your bank or credit union. Thus, it is important to compare and contrast offerings from different automakers to ensure you get the most value from your purchase. Do your research to find the best financing options for you is a great first step!
Cutting off your home’s access to local gasoline sources is a major investment that could pay dividends in the long run. Many states and municipalities offer tax rebates to homeowners who wish to install solar panels, heat pumps, and other energy efficient alternatives to gasoline. Recently, heat pumps received an extension for their 30% federal tax credits starting in 2023. These tax credits also include renewable energy sources like solar panels and geothermal. Many states also include additional tax rebates and incentives for heat pump installations. For solar panels, your home’s value could increase by a considerable amount if you install them. So, if you wish to sell your house in the near future, installing solar panels could give you good returns on the housing market.
As we transition toward a renewable, electric future, it is important to make sure your home is ready for the anticipated increase in power demand. Electrifying your home requires the installation of EV chargers, electric appliances (i.e. stovetop and dryer), and heat pumps. Upgrading your home’s electric capabilities may be needed to sustain the increase in electricity. While such an upgrade could be costly if a service upgrade is needed, you can instead have an electrician rewire your breaker box to better optimize it for electrification. Federal tax incentives will be offered to homeowners that electrify their houses in 2023. Additional incentives from electric utilities are also offered in some states. To learn more about available rebates and incentives to help finance your electrification plans, Energy Star provides a useful rebate finder here.