Which of the following is a financial incentive for energy efficiency projects?

Tax credits or rebates serve as a financial incentive for energy efficiency projects by directly reducing the overall cost of implementing such initiatives. When businesses or homeowners undertake energy efficiency upgrades, they may qualify for these credits or rebates, effectively providing them with immediate financial relief. This lowers the payback period for the investment, making it more attractive to pursue energy-efficient improvements.

Tax credits reduce the amount of tax owed while rebates provide cash back or reductions on the purchase price of energy-efficient products or services. These financial mechanisms encourage increased adoption of energy-efficient technologies and practices, ultimately leading to energy conservation and lower utility bills.

In contrast, increased property taxes would not incentivize energy efficiency; rather, they might dissuade investment by raising ongoing costs. Higher interest rates on loans would make financing energy efficiency projects more expensive, which is counterproductive. Similarly, subsidies for non-efficient technologies would divert funds away from energy-efficient solutions, undermining the incentives for environmental improvement.