Top 4 tips for the Inflation Reduction Act
How smart co-op and condo owners and boards electrify
As co-op and condo owners and boards focus on sustainability, along with environmental, social, and corporate governance (ESG), and avoiding fines under Local Law 97, electrification can be a smart solution. It involves replacing carbon emissions-producing heating, ventilation, and air conditioning (HVAC) systems and appliances with those that run on electricity. The Inflation Reduction Act and Rewiring America initiatives can help low and middle-income New Yorkers electrify their apartments and buildings at reduced or even no cost. Here are four tips for co-op and condo owners to make the most of these opportunities:
Electric Panel: An electric panel is a crucial component of an electric upgrade project. When planning an electric upgrade, it is important to consider whether your building has enough electric capacity to support the new electrically powered systems and appliances. If not, you may need to upgrade your electric panel and wiring to increase capacity. Rewiring America offers upfront discounts for electric panels and electric wiring upgrades to help make the transition to electrification more affordable. These upgrades may be necessary to ensure that your building has sufficient electric capacity to power all of its systems and appliances efficiently and safely. The electric panel comes with a $4,000 discount and up to $2,500 for the electrical work.
Heating, ventilation, and air conditioning (HVAC) systems are often the largest consumers of fossil fuels and emitters of carbon in apartments and buildings. As part of the Inflation Reduction Act, heat pumps that can replace radiators and air conditioners come with an upfront discount of $8,000 and a $2,000 tax credit. Heat pumps use electricity to provide heating and cooling, making them a more environmentally-friendly option than traditional HVAC systems that rely on fossil fuels. By replacing your building's HVAC system with a heat pump, you can reduce your carbon emissions and take advantage of the financial incentives offered by the Inflation Reduction Act.
Electric stove replacement is a smart and easy appliance trade, and it comes with an $840 discount as part of the Inflation Reduction Act. While cooking gas may only account for about 3% of a building's total energy use, there are other benefits to switching to an electric stove. For example, gas stoves with open flames are often considered by parents to be more dangerous, particularly for younger children, so many parents in New York City may be interested in replacing their gas stove with an electric one for this reason. Additionally, electric stoves are generally easier to clean and maintain than gas stoves, and they can offer more precise temperature control, which can be helpful for cooking. Overall, replacing your gas stove with an electric one is a simple way to take advantage of the incentives offered by the Inflation Reduction Act and make your home or building more environmentally-friendly.
Other items that are eligible for upfront discounts or tax credits under the Inflation Reduction Act include electric dryers, electric water heaters, and electric vehicles. While these options may not be practical for individuals living in apartments, they may be viable for co-op or condo buildings. If you are a member of a co-op or condo board, you may want to consider looking into these options, as well as the possibility of installing solar panels, as part of your building's efforts to transition to electrification. These measures can help to reduce your building's carbon emissions, minimize its Local Law 97 fines, and take advantage of the financial incentives available through the Inflation Reduction Act. Many of these upfront discounts and tax credits will be available in 2023, but are not yet available. Planning the installation and funding it may take some time, so there’s no better time to plan your electrification than today.
As you can see, the Inflation Reduction Act and Rewiring America initiatives offer a range of opportunities for co-op and condo owners and boards to transition to electrification and reduce their carbon emissions. By upgrading your electric panel, replacing your HVAC system with a heat pump, switching to an electric stove, and considering other electric appliances and technologies, you can take advantage of upfront discounts and tax credits and make your building more sustainable. While many of these incentives may not be available until late 2023, it is important to start planning now to ensure that you are ready to take advantage of them when they become available. By taking these steps, you can help your building to reduce its carbon footprint, minimize its Local Law 97 fines, and contribute to the city's efforts to combat climate change.
The Folson Group is a NYC energy efficiency consultant, helping buildings reduce their energy consumption and become more sustainable. The services they offer cover the entire process, from planning to execution and completion, and have helped their clients to achieve energy cost savings of up to 40% on their projects. If you are interested in making your building more energy efficient and environmentally-friendly, consider reaching out to The Folson Group to schedule a consultation.