Minneapolis Gas & Electric Bill Hike Coming in 2024
What That Means for Your Family’s Home Energy Costs
As Minneapolis positions itself to combat the effects of climate change, one piece of legislation that has caused a lot of buzz is the Climate Legacy Initiative. Through this initiative, homeowners can expect to pay more in 2024 for their gas and electric bills in an effort to fund the city’s Climate Equity Plan, designed to prioritize sustainable energy and respond to climate change through 2040.
Keep reading to find out how these changes will impact local families and business owners and what can be done to prepare now so that you can lower your utility expenses in the new year.
How Much Will the Climate Legacy Initiative Affect Gas & Electric Prices for Homeowners?
In October 2023, the Minneapolis City Council approved and Mayor Jacob Frey signed the Climate Legacy Initiative — a set of fee hikes slated to raise pricing for all gas and electric customers throughout the city. Impacting residential, industrial, and commercial customers, those relying on gas and electric HVAC systems can expect to pay about $1 more per month during the first several years of the program.
This may not sound like a big price hike, but with nearly 180,000 households and over 10,000 local businesses, the city expects to generate nearly $10 million annually to help support the Climate Equity Plan. The money generated from these price hikes will be used to weatherize homes, installing upgraded attic and wall insulation and plugging drafts in at least 40,000 homes by 2040.
When Will the Climate Legacy Initiative Take Effect?
The Climate Legacy Initiative will take effect starting in January 2024, with the program designed to last through 2040. That doesn’t give homeowners much time to prepare for the forthcoming price hikes; however, since the increased pricing of $1 is fairly low, the resulting utility bills won’t significantly impact families who are already struggling against high inflation and economic uncertainty.
What Can You Do To Lower Your Energy Bills in 2024?
As Minneapolis families and business owners look to save money on their energy expenses in 2024, there are plenty of ways they can prepare for price hikes in gas and electricity. Thanks to the Inflation Reduction Act, signed into law in August 2022, Minneapolis is slated to roll out the High-Efficiency Home Rebate Act (HEEHRA), which provides special tax incentives and rebates to those choosing to install qualifying energy-efficient HVAC systems, such as heat pumps, in their homes.
Under the program, families can receive up to $14,000 in annual tax credits for qualifying upgrades. For heat pumps in particular, the total rebate amount you receive will depend on your household’s income level:
- Low-income households: Low-income households at less than or equal to 80% of the area’s median income (AMI) level may be eligible to receive 100% of the cost of their heat pump installations covered (up to $8,000).
- Moderate-income households: Moderate-income households between 80% to 150% AMI may be eligible to receive 50% of the cost of their heat pump installations covered (up to $4,000).
- Other households: Households with income in excess of 150% AMI may be eligible to receive 30% of the cost of their heat pump installations covered (up to $2,400).
Choosing to install a heat pump is a great way to offset the expected hike in gas and energy prices since these systems are much more energy-efficient.
Trust Dean’s Home Services With Your HVAC Upgrades!
If you’re looking to lower your energy bills in 2024 ahead of the expected price hikes, Dean’s Home Services can help. We offer a broad selection of qualifying heat pump systems eligible for the HEEHRA program tax incentives, helping families afford the cost of their energy-efficient HVAC upgrades.