States are recognizing the levers that work–incentives are gaining ground.
For years, incentives, rebates, and tax credits have been important tools to motivate homeowners to invest in energy efficiency. A new report from Green Builder Media’s COGNITION Smart Data shows that those tools are gaining considerable traction with both homeowners and home builders.
From 2024 to 2026, the percentage of consumers who reported receiving an incentive, rebate, or tax credit for energy-efficient upgrades increased by 48.9%.
That dramatic shift suggests that government programs and utility offerings are becoming more effective at reaching homeowners and motivating investment in high performance homes. State tax rebates and incentives are playing an important role, while Inflation Reduction Act funding, including 45L, which was newly included in the 2026 research, also showed significant uptake.
The trend is just as striking on the builder side.
In 2026, 66.1% of builders surveyed said they received an incentive, rebate, or tax credit for installing energy-efficient upgrades. State programs led the way, with 58.9% of builders reporting receiving state tax rebates or incentives. Municipal programs also had significant participation, at 37.4%, while 34.6% reported receiving Inflation Reduction Act 45L funding.
Those numbers show a big shift in the market–providing money back speaks to homeowners and builders.
Often, energy efficient products need an upfront investment to get longer term benefits. But, rebates and incentives can reduce initial costs and remove that hurdle.
Nearly two-thirds of builder respondents received some form of incentive, rebate, or tax credit in 2026, making these programs a meaningful part of builders' product selection.
The increase in homeowner participation between 2024 and 2026 also shows that homeowners are connecting more sustainable home options with available financial support. Now, the opportunity is to build on that momentum.
Within the COGNITION Smart Data platform, every state, local and federal incentive is a click away to show how builders can take advantage of this opportunity and to put manufacturers in the same position.
As more homeowners know about and take part in the programs, it’s clear to see that the incentives are making an impact. More people are actually using them.
Jennifer Castenson currently serves as the vice president of COGNITION Smart Data and market analytics at Green Builder Media. She also serves as contributing writer to Forbes, reporting on innovation in the built environment.
Consumer Use of Rebates and Incentives Grows 49%
States are recognizing the levers that work–incentives are gaining ground.
From 2024 to 2026, the percentage of consumers who reported receiving an incentive, rebate, or tax credit for energy-efficient upgrades increased by 48.9%.
That dramatic shift suggests that government programs and utility offerings are becoming more effective at reaching homeowners and motivating investment in high performance homes. State tax rebates and incentives are playing an important role, while Inflation Reduction Act funding, including 45L, which was newly included in the 2026 research, also showed significant uptake.
The trend is just as striking on the builder side.
In 2026, 66.1% of builders surveyed said they received an incentive, rebate, or tax credit for installing energy-efficient upgrades. State programs led the way, with 58.9% of builders reporting receiving state tax rebates or incentives. Municipal programs also had significant participation, at 37.4%, while 34.6% reported receiving Inflation Reduction Act 45L funding.
Those numbers show a big shift in the market–providing money back speaks to homeowners and builders.
Often, energy efficient products need an upfront investment to get longer term benefits. But, rebates and incentives can reduce initial costs and remove that hurdle.
Nearly two-thirds of builder respondents received some form of incentive, rebate, or tax credit in 2026, making these programs a meaningful part of builders' product selection.
The increase in homeowner participation between 2024 and 2026 also shows that homeowners are connecting more sustainable home options with available financial support. Now, the opportunity is to build on that momentum.
Within the COGNITION Smart Data platform, every state, local and federal incentive is a click away to show how builders can take advantage of this opportunity and to put manufacturers in the same position.
As more homeowners know about and take part in the programs, it’s clear to see that the incentives are making an impact. More people are actually using them.
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By Jennifer Castenson
Jennifer Castenson currently serves as the vice president of COGNITION Smart Data and market analytics at Green Builder Media. She also serves as contributing writer to Forbes, reporting on innovation in the built environment.Also Read