After University of Texas research scientist Joshua Rhodes installed an energy efficient heat pump in his Austin home, as part of a remodel, he saw his electricity bills decrease by about 20% to 30%.
"The heat pump, particularly in the winter, is much more efficient than the system that we had before," he said.
Rhodes was able to receive a partial reimbursement for the new heat pump through the federal Energy Efficient Home Improvement Credit.
But that tax credit, along with the Residential Clean Energy Credit – which helps reimburse homeowners for installing renewable energy technology – is set to expire Wednesday.
Property owners who make energy efficient home improvements or install solar panels, geothermal heat pumps or other renewable energy technology after Dec. 31 will not qualify for the tax credit.
The tax credits, which could be used by homeowners across the country, are being phased out under the "One Big Beautiful Bill Act" passed earlier this year by the Republican-controlled Congress.
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Rhodes said the expiring tax credits could lead to a decrease in the use of more energy efficient devices.
"In general, some of these technologies like the more efficient heat pumps that qualified for the tax credit can cost more than the code minimum heat pump or air conditioner or heater," he said.
Karl Rábago, a consultant and former commissioner for the Public Utility Commission of Texas, said the expiring tax credits mark a step back from investments in clean energy.
"It's going to be harder and more expensive to ensure that Texas has reliable electricity," he said.
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Still, Rábago said there's ways for both providers and consumers to leverage clean energy and make it more accessible – for example, using "creative financing" to make energy efficient technologies more feasible for consumers, or building mini solar farms in neighborhoods.
"I've seen signs that even in Texas, they recognize that they don't want to fall off a cliff with all this great renewable energy development that has generated benefits for local communities," he said.
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