Efficiency Improvements, Price Escalation, Neighborhood Displacement: Strategies to Ensure “Good” Market Transformation Does Not Create “Bad” Market Transformation

The Inflation Reduction Act (IRA), the single largest investment in climate and energy in American history, allocates $9 billion for programs that offer rebates to facilitate homeowners’ efficiency improvements. The implementation of the IRA will help homeowners cover the costs of energy efficient and electrification measures like insulation, efficient appliances, and heat pumps.

Beyond the short-term impact of spurring the installation of millions of energy efficiency improvements, the IRA is also designed to drive long-term market transformation by creating enduring consumer demand for energy efficiency. One key market transformation in the legislation is third-party energy efficiency certification, which will play a crucial role in making a home’s energy-efficient and electric features visible.

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