Four states — California, Hawaii, New Mexico and New York — are the first to submit funding applications for the U.S. Department of Energy’s (DOE) Home Energy Rebates program, a historic $8.8 billion investment to lower costs for American families through energy efficiency and electrification thanks to President Biden’s Inflation Reduction Act.
As part of President Biden’s Investing in America agenda, these transformative rebates will help American families lower energy costs by upgrading home appliances, insulating their homes, installing heat pumps, and making additional energy-efficient improvements. DOE estimates the rebates will support more than 50,000 jobs and save Americans $1 billion every year by lowering energy bills.
To benefit disadvantaged communities, states and territories are required to allocate at least half of the rebates to low-income households, defined as those earning 80 percent or less of their area median income. States and territories must also submit plans to ensure these investments are creating good jobs and new opportunities in communities that have been left behind.
“It has been incredible to watch these states, the first in the nation, work so quickly and effectively,” said Dr. Henry McKoy, director of the Office of State and Community Energy Programs at the Department of Energy. “There’s still much work to be done, but these states are knocking it out of the ballpark and working incredibly hard to save their residents money as soon as possible. We look forward to seeing which states submit their applications next and providing continued assistance to help states get their applications in as quickly as possible.”
“We are thrilled to be one of the first states moving forward with a Home Energy Rebates application," said Commissioner Andrew McAllister, lead for energy efficiency at the California Energy Commission. "This is an important step towards getting these federal dollars to Californians eager to update their homes and realize energy bill savings. Our close partnership with DOE is critical for accelerating markets for heat pumps and other clean, low-carbon technologies."
“We are honored to be among the initial states to have submitted an application for the Home Energy Rebates,” said Mark B. Glick, chief energy officer of the Hawaii Energy Office. “We appreciate the pivotal technical assistance provided by DOE during preparation of our application and look forward to the next steps towards helping our residents realize the significant energy efficiency savings potential these rebates offer.”
“We are so excited to provide this opportunity for low-income residents in our state to make energy upgrades at an affordable cost,” said Rebecca Stair, director of the New Mexico State Energy Office. “That is why we wanted to be among the first states to submit our application for this program, and we look forward to rolling it out across our state.”
“With our application submittal, we have a unique opportunity to leverage substantial federal funding to expand access for low- to moderate-income residents in New York State to save energy and money by improving the energy performance of their homes,” said Doreen M. Harris, president and CEO of the New York State Energy Research and Development Authority. “The Home Energy Rebates program will create additional opportunities, prioritize equity, and enable significant progress — specifically for residents in disadvantaged communities — toward New York State’s ambitious climate goals.”
DOE is now reviewing these states’ applications for Home Electrification and Appliance Rebates program funding to ensure they meet DOE guidelines. Once DOE approves the applications and awards the states their funding, they will complete steps to launch their respective programs and begin accepting rebate applications from consumers.
These states will apply for their Home Efficiency Rebates program funding at a later date. More information about the rebate programs is provided below.
Throughout 2023, DOE provided states, territories and Tribes with guidance and technical assistance to apply for their funding and stand up their programs. DOE will continue releasing technical assistance documents in the weeks and months ahead. View our resources to help states, territories, and Tribes apply for and design and implement their rebate programs.
Save Money Now
Homeowners can act now to prepare for the rebates and save energy and money in the process:
A professional home energy assessment, which is often offered for free by local utilities or state energy programs, helps homeowners figure out how much energy they use, where their homes are inefficient, and how to maximize savings and improve comfort. Many assessments are eligible for federal tax credits of 30 percent off the assessment cost (up to $150).
Tax credits of 30 percent are also available for rooftop solar, battery storage, energy efficiency and electric upgrades, heat pumps, and other clean energy upgrades.
For those who qualify, DOE’s Weatherization Assistance Program provides free weatherization improvements and upgrades for households experiencing financial hardship.
About Home Energy Rebates
On Aug. 16, 2022, President Biden signed the landmark Inflation Reduction Act. The law includes nearly $400 billion to support clean energy and address climate change, including $8.8 billion in Home Energy Rebates, which will provide two separate rebates to consumers:
The Home Efficiency Rebates will provide $4.3 billion to discount the price of energy-saving retrofits in single-family and multi-family buildings. These rebates will be administered by states and territories.
The Home Electrification and Appliance Rebates will provide $4.5 billion in rebates for high-efficiency electricity upgrades in homes. These rebates will be administered by states, territories, and Indian tribes.