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Households that go fully electric save an average of $1,800 a year — and it’s never been easier to make the switch

New cash rebates and tax credits will make home electrification more attractive than ever for millions of homeowners.

home electrification

Photo Credit: iStock

Aside from switching to an electric vehicle (EV), home electrification is one of the most impactful things you can do to save money and protect our planet. 

Cars and homes contribute a whopping 42% of all harmful carbon pollution in the U.S. energy sector. Thankfully, our personal infrastructure is set to get a major upgrade in 2023 with new financial incentives and turnkey solutions.

What is home electrification?

Electrifying your home means replacing major dirty-energy-burning appliances with modern electric alternatives. This includes things like your furnace, water heater, stove, oven, and clothes dryer.

Households that go fully electric save an average of $1,800 a year while providing safer and more comfortable home environments for their families.

Why does home electrification matter?

Top climate scientists say electrifying our cars and major home appliances is essential to achieving net zero — the goal of completely negating the amount of planet-overheating gas pollution produced by human activity by both curbing pollution and using methods to absorb it from the atmosphere, such as planting trees and funding clean energy projects.

To stay on target over the next seven years, the U.S. must make EVs the majority of new car sales and replace at least 20% of furnaces with money-saving electric heat pumps in buildings.

Here are four reasons why 2023 is set to be a breakout year for home electrification.

Reason 1: More EVs will charge at home

The U.S. crossed a key tipping point in EV adoption in 2022. This is good news for home electrification.

According to the Department of Energy, 80% of EV charging happens at home. EV owners who want to wake up with a full charge every morning may install an efficient, high-speed “Level 2” charger in their home.

Often, this is someone’s first major electric upgrade.

Reason 2: EV adoption leads to home electrification

As countries like Norway have shown, EV ownership is a leading indicator of the broader home electrification movement. Once EV sales hit critical mass, interest soars in home electrification upgrades like heat pumps.

In the U.S., EV tax credits should help keep the momentum going in 2023. So, too, should the increasing affordability of EV ownership. Dozens of new models are set for 2023, including many under $30,000.

Reason 3: New tax incentives for home upgrades

New cash rebates and tax credits will make home electrification more attractive than ever for millions of homeowners.

The Inflation Reduction Act’s Energy Efficient Home Improvement credit allows households to deduct $1,200 or more from their taxes when upgrading two appliances. For new electric water heaters or heat pumps, incentives go up to $2,000.

Reason 4: It’s easier than ever to do

Traditionally, home electrification projects involved calling multiple electricians and arranging visits to the house. Modern companies are using technology to eliminate that friction. 

For example, Kopperfield has made home EV charger installation easier by using an online form and photos of the house to replace multiple site visits and phone calls leading up to installation.

According to the company, 90% of customers can get a price and book their installation 100% online. They plan to add other home electric upgrades like heat pumps in the future.

The combination of financial incentives and shopping simplicity means 2023 is shaping up to be a pivotal year for home electrification.

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