Residential Clean Technologies Still Make Sense — Even Without Tax Credits

An RMI analysis evaluates the viability of residential clean technologies—electric vehicles (EVs), air-source heat pumps (ASHPs), and rooftop solar—in the US following the expiration of federal tax credits under the One Big Beautiful Bill Act of 2025. The report finds that these technologies still provide significant greenhouse gas (GHG) emissions reductions and household cost savings, though the most effective technology varies by region and household archetype.

• Despite the loss of federal tax credits from the Inflation Reduction Act (IRA) due to the One Big Beautiful Bill Act of 2025, residential clean technologies continue to offer meaningful emissions reductions and cost savings. For instance, EV drivers in 18 states can reduce their total cost of ownership by more than $5,000 over a 10-year period compared to those using gasoline vehicles.
• The technology providing the greatest emissions reduction varies by region: EVs generally lead in most states, reducing residential transportation emissions by an average of 51% compared to gasoline cars. However, ASHPs are the leaders in the Northeast and Midwest, reducing average annual GHG emissions by 40% when replacing fuel oil and propane. In Hawaii, rooftop solar provides the highest emissions impact due to the state's carbon-intensive grid.
• Cost savings priorities differ from emissions priorities. ASHPs provide the highest average annual savings in most of the South for households switching from electric resistance heating. Rooftop solar is the savings leader in Florida, California, and the Northeast, driven by abundant sunlight, strong net metering, and high electricity prices. In the Northeast, bundling rooftop solar with EVs increases average annual savings by $1,420 compared to EVs alone.
• The effectiveness of ASHPs is highly dependent on the existing heating system. Households using delivered fuels like propane or fuel oil, particularly in the Northeast, can see average annual lifetime savings of up to $1,100. In the South, homes with electric resistance heating offer the strongest environmental and affordability returns.

APA

RMI (2026). Residential Clean Technologies Still Make Sense — Even Without Tax Credits. https://rmi.org/resources/residential-clean-technologies-still-make-sense-even-without-tax-credits/

Chicago

RMI. Residential Clean Technologies Still Make Sense — Even Without Tax Credits. 2026. https://rmi.org/resources/residential-clean-technologies-still-make-sense-even-without-tax-credits/.

Wikipedia

{{cite report |author=RMI |title=Residential Clean Technologies Still Make Sense — Even Without Tax Credits |date=22 June 2026 |url=https://rmi.org/resources/residential-clean-technologies-still-make-sense-even-without-tax-credits/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2026residential, author = {{RMI}}, title = {{Residential Clean Technologies Still Make Sense — Even Without Tax Credits}}, institution = {RMI}, year = {2026}, month = jun, url = {https://rmi.org/resources/residential-clean-technologies-still-make-sense-even-without-tax-credits/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }