Our discussion on how to save energy at home briefly hits on more than 30 changes you can can make in and around your home, from cheap-yet-effective steps to upgrades that require upfront spending, but quickly pay for themselves from lower utility bills to systems and renovations that minimize what you pull off the grid, but come at steep prices.

Often, the extra costs of energy-saving improvements can be reduced by tax credits and utility company rebates. But on July 4, President Trump signed into law a sprawling bill that ended generous tax credits for green-energy projects. You can still claim the “Energy Efficient Home Improvement Credit” when preparing your 2025 tax return, but you must complete and pay for eligible projects by December 31.

Below are the energy-saving rebate programs available at the time of this writing. We didn’t include low-interest loan programs or incentives available for new home construction. We also didn’t look for community grants for multi-home projects or programs for owners of commercial buildings. There are also many programs available to landlords of apartment buildings.

Check EnergyStar.gov and the links below for up-to-date info. Also check the website of the Database of State Incentives for Renewables & Efficiency (DSIRE).

Act Fast to Take Advantage of Canceled Federal Tax Credits

You can still claim the “Energy Efficient Home Improvement Credit” if you complete and pay for projects by the end of 2025. This incentive provides tax breaks to homeowners who make green improvements to their primary residences. The credit is equal to 30 percent of the cost of the following types of eligible projects; for some there are individual annual maximum allowable credits:

  • Air-sealing and insulation improvements—no cap
  • Central ACs—$300 cap for most systems
  • Energy audits—$150 cap
  • Exterior doors—$250 per door, $500 limit for multiple doors
  • Gas and oil furnaces—$600 cap for units with 97+ AFUE
  • Windows and skylights—$600 cap

If you do more than one of the projects listed above there’s a maximum tax credit of $1,200 each year.

A separate tax credit of up to $2,000 is available if you buy a qualifying heat pump, heat pump water heater, or biomass stove or boiler (for example, one that burns wood pellets). That credit also goes away at the end of 2025.

If you install a ground-source heat pump or solar panels you may qualify for a 30 percent federal tax credit with no cap. Again, you have to complete all work by the end of 2025 to get the incentive.

Rebate Programs Funded by the Inflation Reduction Act Languish

The new law that ended energy efficiency tax credits did not cancel rebate programs authorized by the Inflation Reduction Act (IRA) of 2022. But since taking office, President Trump’s administration has slowed or halted approvals for these programs, and it’s still unclear whether rebates for Illinois residents will ever launch.

The IRA allotted more than $350 billion for energy and climate programs by establishing incentives for U.S. households and businesses to shift to technologies that consume less energy and cut greenhouse-gas emissions. About $80 billion of that was earmarked for rebates of up to $14,000 per household for making green energy upgrades over the next decade. The largest rebates would have encouraged households to switch to heat pumps to heat and cool their homes. These aren’t tax credits; they’re point-of-sale rebates that homeowners will receive as discounts as they make preapproved improvements.

The IRA required each state to create its own rebate program and then submit its plans to the Department of Energy for approval. Only a handful of states received funding prior to Trump’s inauguration. Since then, no new state rebate programs have launched.

Minnesota received approval for its program in late 2024. As of today, its Commerce Department’s website reports it “anticipates opening the HEAR program to eligible applicants statewide” in late 2025.

Websites of most other states still report their programs will be available in 2025 but we have found it difficult to get updated info on them.

We’Il let you know if and when these generous rebate programs become available for this area.

Programs Available from Local Utilities

Listed below are incentives from local utility companies in effect in July 2025. Programs come and go; check with your utility and the Database of State Incentives for Renewables & Efficiency for up-to-date info.

Before starting a project, confirm that you qualify. Rebate programs usually require homeowners to work with the utility’s “approved” contractors or to file paperwork before installations.

CenterPoint Energy

  • Energy audits cost $70 to $100
  • Attic air sealing—$750 rebate
  • Attic air sealing plus add insulation—$1,300 rebate
  • Clothes dryers—$75 rebate for gas models
  • Fireplaces—$75 rebate for gas units with electronic ignition
  • Furnaces, gas—$200 rebate for units with 92+ AFUE; $400 for 96+ AFUE; $1,000 for 97+ AFUE
  • Furnaces, boiler—$300 rebate for units with 85+ AFUE; $500 rebate for condensing units with 91+ AFUE
  • Heat pumps, air-source—$1,100 rebate if installed with a new or existing natural gas furnace with 92+ AFUE
  • Programmable thermostats—$10 to $50 rebate
  • Wall insulation—$1,500 rebate
  • Water heaters, gas tank models—$250 rebate
  • Water heaters, gas tankless—$500 rebate

Connexus Energy

  • Dual-fuel heating systems (for example, a heat pump backed by a gas furnace)—electricity rates cut in half from October to May
  • Electronically commutated motors—$50 rebate
  • Heat pumps, air-source—electricity rates cut in half from October to May plus $630 to $1,000 rebate, depending on model’s energy efficiency rating
  • Heat pumps, ground-source—$600-per-ton rebate
  • Heat pumps, mini-split ductless—electricity rates cut in half from October to May plus $500 rebate for efficient models
  • Smart thermostats—$25 rebate
  • Water heaters, heat pump—$100 rebate

Dakota Electric

  • Appliance recycling—$75 rebate (one per year, max) when you turn in old units
  • Central ACs—$350 rebate for efficient models
  • Clothes dryers—$25 rebate
  • Dehumidifiers—$25 rebate
  • Heat pumps, air-source—$750 to $1,000 rebate
  • Heat pumps, ground-source—$400-per-ton rebate for qualifying systems
  • Heat pumps, mini-split ductless—$150 to $1,000 rebate, depending on size and efficiency of model
  • Lighting—up to $2 per bulb rebate for LEDs; $30 per LED fixture for outdoor lighting
  • Water heaters, electric tank—rebate up to $400
  • Water heaters, heat-pump—$500 rebate

Minnesota Energy

  • Energy audits—$75 or $150 rebate, depending on service
  • Air-sealing—rebate equal to 50 percent of project costs with a $300 cap; must exceed 25 percent reduction in leakage
  • Air-sealing and attic insulation combined—rebate equal to 50 percent of project costs with a $650 cap; must install at least R-49 of insulation and achieve 25 percent reduction in leakage
  • Duct sealing (aerosol)—rebate of $2.50 per CFM reduction with a $500 cap; must achieve 50 percent reduction in leakage
  • Floor insulation—rebate equal to 50 percent of project costs with a $200 cap
  • Foundation/rim joist insulation—rebate equal to 50 percent of project costs with a $425 cap
  • Fireplaces—$75 rebate for direct vent, sealed combustion, or electronic ignition fireplace, or an insert or free-standing stove
  • Gas boilers—$200 rebate for units with 90+ AFUE; $250 rebate for 92+ AFUE with integrated water heating system
  • Gas furnaces—$200 rebate for units with 92+ AFUE; $350 for 94+ AFUE; $500 for 97+ AFUE
  • Programmable thermostats—$25 rebate
  • Sidewall insulation—rebate equal to 50 percent of project costs with a $750 cap
  • Water heaters, gas tank models—$125 to $300 rebate, depending on energy efficiency of unit
  • Water heaters, gas tankless—$300 rebate
  • Windows—$50 rebate

Xcel Energy

  • Energy audits—cost $30 to $100, depending on service
  • Air sealing—rebate equal to 40 percent of project cost, up to $600 for heating customers; maximum rebate is $45 for cooling-only customers
  • Central ACs—$150 or $450 rebate, depending on model
  • Furnaces—$200 rebate for units with 95 AFUE; $300 for 96 AFUE; $400 rebate for 97+ AFUE
  • Heat pumps, ground-source—$500-per-ton rebate
  • Heat pumps, ductless—up to $2,000 rebate
  • Insulation, attics—rebate equal to 40 percent of project cost, up to $1,200, for heating customers; maximum rebate is $120 for cooling-only customers
  • Insulation, walls—rebate equal to 40 percent of project cost, up to $1,200, for heating customers; maximum rebate is $75 for cooling-only customers
  • Refrigerators and freezers—$50 rebate for turning in old unit
  • Water heaters, gas tank models—$75 rebate
  • Water heaters, tankless gas—$250 rebate
  • Water heaters, heat-pump—$400 rebate

Additional Resources to Help You Go Green at Home

Consumer Reports
Ratings of appliances, lightbulbs, window AC units, etc.

Database of State Incentives for Renewables & Efficiency
Rebates and tax incentives available from utilities and governments

Earth911.com
Green tips, plus database of recycling centers and where to dispose of hazardous household waste

Efficient Windows Collaborative
Help with window selection and estimating cost savings

Energy Star
Certifies energy-efficient appliances and HVAC equipment

National Renewable Energy Laboratory
Research and publications on renewables; offers a calculator that estimates energy production and cost of solar installations

Passive House Institute U.S.
Certification and training for net-zero energy-use builders, contractors, and manufacturers

Residential Energy Services Network
Certification for energy auditors

Rewiring America
Educational resources; tracks public policy for electrification projects

Snugg Pro
User-friendly web-based energy-auditing software

YouTube.com
Thousands of DIY videos from experts (but also non-experts)

Zero Energy Project
Advice and lists of products and suppliers for home buyers, builders, and designers interested in net-zero energy-use homes