More than 3.4 million American families benefitted from $8.4 billion in tax credits to lower the costs of clean energy and energy efficiency upgrades to their homes in 2023, the US Treasury Department said Wednesday.

The number of families benefiting from the expanded credits for investments that lower their utility bills increased by almost one-third in tax year 2022, compared to tax year 2021, it said in a statement.

American consumers will save on their energy bills for years to come, in addition to upfront cost savings on home improvements, it added.

Households installing residential solar have saved a median of $2,230 annually, and households that install efficient heat pumps and improve building efficiency are expected to save up to $600, $1,200 or $3,100 per year, based on the type of heating and cooling system that is being replaced, it noted.

“The Biden-Harris Administration’s top economic priority is lowering costs for American families, and the Inflation Reduction Act is advancing that goal by making home energy upgrades more affordable and cutting monthly utility bills,” said Treasury Secretary Janet Yellen. “The law has lowered the cost of clean energy upgrades for more than 3.4 million American families, saving them hundreds, if not thousands, of dollars annually on their utility bills for many years to come.”

The Treasury Department said American families have claimed more than $6 billion in credits for residential clean energy investments on 2023 tax returns filed, adding that the credit helps families afford investments in solar electricity generation, solar water heating and battery storage, among others.

Families have also claimed more than $2 billion during the same period for energy-efficient home improvements, which include heat pumps, efficient air conditioners, insulation, windows and doors, it added.

More than 750,000 families claimed investments in residential solar electricity and over 250,000 in electric or natural gas heat pumps, while 100,000 families claimed investments in heat pump water heaters, 700,000 in insulation and air sealing, it noted. (Anadolu Agency)

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