Warming your house the green way just got more expensive

The expiration of federal clean energy tax credits on December 31, 2025, marks a significant shift for American homeowners and the renewable energy industry. These Biden-era incentives previously allowed taxpayers to write off 30% of costs—up to $2,000—for energy-efficient upgrades like heat pumps and insulation. While millions utilized these credits in 2023, critics from the Competitive Enterprise Institute argue the program primarily benefited higher earners who likely would have made the investments regardless. Despite the loss of federal subsidies, which may cause a temporary dip in equipment sales and a projected 7% rise in natural gas prices, the residential market continues to trend toward electrification. Industry experts like Ari Matusiak of Rewiring America note that heat pumps have outsold gas furnaces for four consecutive years, and increasing power demands from AI data centers are incentivizing utilities to promote household efficiency to stabilize the grid.