Category: Climate-Friendly Living

Thinking about going electric? There’s never been a better time.

The federal government has been offering generous tax credits for heat pumps, EVs, solar, weatherization, and more over the past few years—helping homeowners save thousands while making their homes cleaner, greener, and way more comfortable. But now, some of the most valuable credits are going away.

In July, Congress passed the One Big Beautiful Bill Act (we’d like a word with whoever named it), which officially sunsets several federal clean energy tax credits—starting as soon as this September.

This post breaks down:

• Which tax credits are ending (and when)
  
• What “installed by 2025” really means
  
• What incentives are still available after 2025
  
• How you can maximize savings and avoid missing out
  

And because there’s a lot to keep track of, we’ve put together a free downloadable checklist to help you plan your upgrades in time. 

A Note From the Herd

Before we get into the details, let’s address the Elephant in the room: this bill is a step backward for everyone. It slows progress in clean energy, threatens renewable investments, and makes electrification harder to access — especially for the communities hit hardest by climate change.

Federal tax credits may only be one piece of the puzzle, but they’re a powerful one. If you’re in a position to install this year, now’s the time to do it. A $2,000 federal credit is nothing to shrug off, and when you stack it with state, local, and utility rebates, the savings can really add up.

That said, this post isn’t here to scare you into installing this year or make you feel like it’s now or never. It’s here to explain what’s happening so you can make the best decisions for your home, your budget, and your timeline — while still taking advantage of the opportunities available.

What’s Changing—and Why It Matters

The tax credits in question were originally created under the Inflation Reduction Act (IRA) in 2023 which helped make things like heat pumps, weatherization, solar, and EVs more financially accessible.

But the One Big Beautiful Bill Act eliminates many of these credits starting in 2025 or 2026. That includes:

• 25C credits for energy efficiency upgrades (like heat pumps and insulation)
• 25D credits for renewable energy installations (like solar and battery storage)
• 25E, 30C, and 30D for EVs (used and new) and EV chargers
  

Here’s why it matters:

• These federal credits stack on top of local and state rebates—meaning big savings for homeowners.
  
• Once they’re gone, you could lose out on up to:
  • $2,000 for heat pumps and heat pump water heaters
  • $1,200 for weatherization and insulation 
  • $600 for electrical panel upgrades (often needed for heat pumps or EV chargers)
  • $1,000 for an EV charger
  • $150 for a home energy audit
  • $7,500 for a new electric vehicle (EV)
  • 30% of the cost of solar and battery storage

• Timing is everything—projects must be installed and fully running by the end of 2025 to qualify (except for EV chargers – those credits expire in 2026 as you’ll see below).
  

Key Deadlines to Know

Here’s when these federal tax credits are set to change:

Upgrade	Credit Ends	Notes
New & used EVs	Sept 30, 2025	Purchase must be completed by this date to claim up to $7,500
Heat pumps, heat pump water heaters, insulation, energy audits, panel upgrades	Dec 31, 2025	Must be installed and fully operational by this date
Solar + battery storage	Dec 31, 2025	30% tax credit, no cap; homes under construction qualify (unlike with heat pumps)
EV chargers	June 30, 2026	Still plenty of time for this one, but if it’s on your radar, check now whether you’ll need an electrical panel upgrade so you can claim that credit in 2025

✔️ Installed means fully up and running in your home—not just scheduled or partially complete. You do not need to have the invoice paid in full by the deadline to claim the credit.

For the full breakdown of which tax credits are affected, deadlines, eligibility, and fine print, our friends at Rewiring America have put together an extensive guide to help you out. Your CPA is always a great resource too, if you have one. 

Why You Should Plan Ahead

We’ve seen a big uptick in demand already, and so have our industry partners. That means:

• Installer availability will shrink the closer we get to 2025’s end
  
• Projects take time to plan, permit, and install—starting now = peace of mind
  
• Elephant homeowners who sign contracts in August 2025 are guaranteed a 2025 install
  

We’ll continue monitoring our capacity and keep you posted if anything changes. But if you’ve been on the fence about upgrading, this is your sign. 🐘

Special Note for Massachusetts Homeowners

If you’re in Massachusetts and want to take advantage of Mass Save® rebates or the 0% interest HEAT loan, there’s a few extra steps you’ll need to factor in:

1. Schedule a free home energy assessment through Mass Save (required to access the rebates and loan)
   
2. If your home needs weatherization—like insulation or air sealing—this usually needs to be completed before your heat pump installation. The good news? Weatherization improves efficiency and may let you install a smaller, less expensive system.
   
3. Apply for the HEAT loan (if you’re using one), which adds more time to the process.
   

Between scheduling the assessment, completing any required weatherization, and processing loan paperwork, you should plan for 3–4 weeks of admin time before your install can even be scheduled.

To sum it up: in Massachusetts, the earlier you start, the smoother the process—and the more likely you are to lock in your install in 2025.

What Stays After 2025?

We promise it’s not all doom and gloom. Even after the federal credits expire, state and utility rebates are still going strong.

Here are some of the major heat pump rebate programs in the states where Elephant operates — and keep in mind, there are plenty of additional (stackable) rebates available through local utilities and cities.

• Massachusetts: Up to $9,000 through Mass Save + 0% interest HEAT loans (Whole-home rebates are up to $10,000 through 2025, drop to $9,000 in 2026, and $8,000 in 2027.)
  
• Colorado: Up to $8,430 through Xcel Energy
  
• California: Up to $1,500 through TECH Clean California, plus up to $8,000 for income-qualified homes through HEERA

Check out the full breakdown of rebates in your state or see what you qualify for in our cost calculator.

Important: Many rebate programs are first-come, first-served and funding can run out at any moment. So if you’ve been thinking about electrifying, don’t wait until the last minute.

Free Checklist: Everything You Need to Electrify Before the Deadline

We know this is a lot. That’s why we made a simple, no-fluff checklist to help you plan:

✅ What projects qualify for 2025 federal tax credits
✅ Key deadlines to hit
✅ Questions to ask your installer
✅ What paperwork to save for tax season
✅ When to act to lock in an install before the rush

Final Word

We always say the best time to electrify is today—but right now, that’s more true than ever. With federal tax credits ending soon and state rebates still rich, there’s a huge window of opportunity to save big and make your home cleaner, greener, and more comfortable. 

And remember, you’re not alone in this — the Herd is here, and so are the states, cities, utilities, and nonprofits all working to make electrification accessible well beyond federal legislation. 

Have questions? Want to see what you qualify for?
Let’s talk → Schedule a call with our team

At Elephant Energy, we believe everyone deserves the benefits of home electrification and energy efficiency—without barriers in the way. But even as clean energy gains momentum, too many communities face high upfront costs, limited financing, and uneven access to trusted contractors. That means too many families are missing out on the comfort, savings, and health advantages of clean, electric heating and cooling.

That’s why we’re excited to partner with Groundwork Denver—a nonprofit organization that’s been deeply rooted in community, environmental justice, and improving the physical environment across the Denver metro since 2002. They work side by side with residents in neighborhoods like Globeville, Elyria‑Swansea, Westwood, Montbello, Commerce City, and Sheridan to create real environmental improvements and leadership opportunities. Their mission: build a healthier, more equitable, and sustainable urban environment through hands-on projects like tree planting, urban greening, and water quality improvements.

As a first step in our partnership, we’re launching a small pilot to offer no-cost home electrification upgrades—including heat pumps and heat pump water heaters—to a limited number of households.

“Groundwork Denver is excited to expand its energy efficiency options for clients to gain access to renewable electrification. This is Groundwork Denver’s next step in supporting communities with energy efficiency, and we are excited to see how this pilot partnership with Elephant Energy grows in the years to come” 

— Derek McCoy, Executive Director, Groundwork Denver

Why This Partnership Matters

Groundwork Denver has deep, long-standing relationships in the communities they work alongside. Through energy audits, they help identify households that stand to benefit most: families with failing furnaces or poor indoor air quality. Their role in outreach and education ensures homeowners hear about these upgrades from a familiar, trusted source—making it easier to take the leap.

From there, Elephant Energy brings the technical expertise: system design, installation, and helping each resident feel confident using their new equipment. Every installation is fully funded, covering not just heat pumps and installation but also any needed weatherization or energy efficiency improvements to make the system perform at its best. That means zero cost to the homeowner.

“Even in an early-stage effort, partnering with Groundwork Denver is key to reaching select households who haven’t had access to—or awareness of—technologies like heat pumps,” said Gurbani Singh, Partnerships and Environmental Justice Lead at Elephant. “Groundwork Denver opens the door, and we bring the solutions and contractor support to help make electrification possible for this first tranche of homes.”

Starting with Impact: Our Earth Day Project

We kicked off the partnership on Earth Day ​​by replacing a 22-year-old gas furnace and swamp cooler in a Denver home—at no cost to the homeowner. With solar panels already in place and weatherization completed through Energy Resource Center’s Weatherization Assistance Program, this home became an electric powerhouse—efficient, comfortable, and nearly fossil-fuel-free. 

This installation represents everything we’re working toward—a home that’s not just more comfortable, efficient, and safe, but free from fossil fuel dependence. It’s one home, but it’s part of a much bigger movement toward energy justice and community-centered climate solutions.

The Bigger Picture

We know that a one-size-fits-all approach doesn’t work when it comes to making homes healthier and more efficient. A successful energy transition needs to be people-centered. That means starting with what each household actually needs to be safe, comfortable, and healthy—whether that’s smaller energy efficiency work like weatherization or larger electric upgrades like heat pumps.

This pilot lets us test our approach, learn from each installation, and build a partnership that can grow to serve even more families over time. Each project teaches us how to make energy upgrades more accessible and impactful.

What’s Next

As we complete installations and gather insights, we’ll share updates that highlight the impact these improvements make for families and the community. This pilot is just the beginning. With continued success, we look forward to expanding this model to reach and support many more Denver families in the years ahead.