Residential Clean Technologies Still Make Sense — Even Without Tax Credits

Despite the removal of federal tax credits for clean energy upgrades via the One Big Beautiful Bill Act of 2025, residential clean technologies in the US continue to offer significant greenhouse gas emissions reductions and cost savings. Using the Green Upgrade Calculator, RMI found that electric vehicles (EVs) generally lead in emissions reductions and cost savings in the West, while air-source heat pumps (ASHPs) are most effective for emissions in the Northeast and Midwest and for savings in the South. Rooftop solar provides the highest emissions impact in Hawaii and leads in cost savings in California, Florida, and the Northeast due to high electricity prices and sunlight. The report emphasizes that the most effective state and local programs will target specific household archetypes—such as high-mileage drivers for EVs or delivered-fuel users for ASHPs—and bundle technologies to maximize synergy and savings.

• Electric vehicles (EVs) provide the highest average annual greenhouse gas emissions reductions in most US states, reducing residential transportation emissions by an average of 51% compared to gasoline cars.
• Air-source heat pumps (ASHPs) are the primary driver for emissions reductions in the Northeast and Midwest, where they reduce average annual GHG emissions by 40% when replacing propane or fuel oil. In the South, ASHPs offer the greatest average annual savings for households switching from electric resistance heating.
• Rooftop solar is the most impactful technology for emissions in Hawaii and the leader for cost savings in Florida, California, and the Northeast, where it serves as a hedge against electricity prices that have risen by more than 26% over five years.
• EVs remain cost-competitive without subsidies, with drivers in 18 states able to reduce their total cost of ownership by over $5,000 over a 10-year period compared to gasoline vehicles.
• Bundling clean technologies increases financial benefits; for example, adding rooftop solar to EV adoption in the Northeast increases average annual savings by $1,420 compared to EVs alone.

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} }