The Home Efficiency Rebates (IRA Section 50121) provides a unique opportunity to reduce energy bills, improve comfort, and increase resilience while preparing homes for the clean-energy transition. To accomplish this, The Department of Energy (DOE) recommends states utilize the Home Efficiency Rebates for envelope upgrades, which are generally the lowest cost opportunity for achieving the 20% savings rebate threshold.
Building envelope improvements often include air sealing, upgrading doors and windows to higher performance models, and ensuring continuous and sufficient insulation in the walls and roof. An envelope-first strategy will best prepare homes to be electrification-ready and to take full advantage of the Home Electrification and Appliance Rebates (IRA Section 50122) and other programs around the country.
Envelope First
An Envelope First Program Design Strategy
As a general principle, when a home is found to have a weatherization need during the home assessment, DOE strongly recommends states require that need be met at the same time or before any mechanical or appliance upgrades are funded. For example, states should consider requiring all cost-effective envelope upgrades prior to the installation of efficient equipment. This is consistent with utility retrofit program best practices.
States should consider an envelope-only approach when deploying Home Efficiency Rebates (IRA Section 50121) when homes may be able to access mechanical equipment upgrades through the Home Electrification and Appliance Rebates (IRA Section 50122).
Improving a home’s envelope performance is an essential first step for many homes on the path to electrification. By lowering heating and cooling loads, home envelope upgrades can significantly reduce the possible near term bill impact of new heat pumps. Further, envelope upgrades can reduce heat pump sizing needs and consequently lower the cost of the heat pump. For this reason, many utility programs, especially those serving low-income households, require or strongly recommend weatherization measures before upgrading HVAC systems.
Weatherization measures such as sealing leaks and improving insulation are typically the lowest cost means of achieving a 20% savings threshold for rebate qualification. This is especially true for the homes and families that need it most: leaky, uninsulated homes are, predictably, those that can achieve the greatest benefit for the lowest cost.
Envelope upgrades are the longest lasting energy savings measures. A home’s envelope will outlast several lifecycles of HVAC equipment and savings will persist regardless of the performance of the mechanical equipment or the behavior of the occupants. Additionally, compared with furnace upgrades, weatherization doesn’t depend on consumer behavior or rely on proper ongoing maintenance, making it a reliable, robust source of long-term savings.
Customers often pursue home energy retrofits with improved comfort as a top priority. Whether it’s eliminating drafty spots or simply being able to keep the thermostat at a comfortable level without breaking the bank, improved comfort can come in many forms. Envelope upgrades also reduce noise pollution and often improve the aesthetics of the homes.
Weatherization offers an array of health and safety benefits, contributing significantly to improved indoor air quality and effective mold prevention. By sealing cracks and openings, weatherization reduces drafts and infiltration of outdoor pollutants, thereby enhancing indoor air quality and reducing the risk of respiratory ailments. Weatherization also regulates indoor humidity levels, helping to prevent the buildup of damp conditions that can lead to mold growth, which not only maintains a healthy living environment but also prevents structural damage to the house.
Weatherization makes homes more resilient in extreme weather conditions and/or grid outages. By properly insulating and sealing homes, they can maintain comfortable temperatures for longer periods during power outages, protecting residents from excessive heat or cold. Heat pumps for space conditioning can be particularly useful as they can provide residents with both heating and cooling services. Households that may have not had access to cooling previously can improve conditions for residents when heat pumps are added to the home.
Weatherization works every day, all year, and thus provides substantial coincident peak load reduction, reducing consumption when it is needed most by the grid. As our homes, buildings, and vehicles continue to electrify, this critical benefit makes weatherization increasingly important and an ideal complement to electrification. Programs that support envelope upgrades can help prevent overloads on the power grid, reducing the risk of blackouts and assisting in load balancing for utilities.
DOE Home Energy Rebates Program Resources
Relevant Links
- Building Electrification: Programs and Best Practices: A resource that assesses the state of building electrification by profiling building electrification programs across the country.
- Weatherization Is Key to Effective, Low-Cost Building Electrification: A resource that highlights the role of weatherization in reducing households’ utility bills and stress on the electric grid.
- Beneficial Electrification: Ensuring Electrification in the Public Interest - Regulatory Assistance Project: An overview of six principles for beneficial electrification strategies.
- Residential Efficiency Retrofits: A Roadmap for the Future: Best practices for designing and implementing a whole-home retrofit strategy.
- Residential Cold Climate ASHP Electrification Study: Review of the utilization and performance of cold climate air-source heat pumps.
- Combating High Fuel Prices with Hybrid Heating: The Case for Swapping Air Conditioners for Heat Pumps: Analysis of the cost benefits of switching to electric heat pumps.