Even with generous subsidies, green retrofits such as solar panels and heat pumps take anywhere from 8 to 48 years to pay off for homeowners, according to a Washington Post analysis released Monday. [emphasis, links added]
Solar panels, one of the most popular retrofits, typically require more than eight years to offset their upfront cost despite existing federal and state incentives that cut their price by more than half, the Post reported based on Harvard University’s modeling of a typical American home.
The findings come as the Trump administration moves to roll back the Biden administration’s climate agenda, including the Inflation Reduction Act.
President Donald Trump signed an executive order on Inauguration Day freezing the $8.8 billion in home energy rebates authorized by the act.
Heat pumps—touted as greener alternatives to gas furnaces—are even slower to break even, according to the report.
A basic heat pump, priced at $12,000 after rebates, may save only $252 a year and will not yield financial returns for 48 years.
A higher-efficiency heat pump can save around $755 annually but still needs 8 years just to recoup initial costs.
Insulation and air sealing upgrades, which cost around $9,187 after rebates, would take homeowners nearly 29 years to cover installation fees, according to the Post‘s analysis.
Read rest at Free Beacon
