Smiling couple in front of their home.

The Department of Energy (DOE) set in motion this week groundbreaking funding for state energy officials to design and implement two new programs targeted at helping eligible homeowners take part in home energy efficiency upgrades and home rebate programs.

The Home Energy Rebate Programs refer to two historic programs: the Home Efficiency Rebates (also called the Home Energy Performance Based, Whole House Rebates) and the Home Electrification & Appliance Rebates (also called the High-Efficiency Electric Home Rebate Program). Both these programs were authorized under the Inflation Reduction Act. 

Legal guidance and access to funding applications for Home Energy Rebate Programs go into effect today, meaning state energy officials can access crucial information regarding the design of their state’s home rebate programs and apply for funding that’s been set aside for their state or territory.

This is a significant step forward because these investments in residential energy programs make direct, material benefit to Americans with instant rebates and discounts for home appliances and home energy upgrades that cut energy use and enable energy to be used more efficiently.

State officials can review the published guidance in the DOE’s new Administrative and Legal Requirements Documents (ALRD) and new Home Energy Rebates Program Requirements Document. 

With the signing of the Inflation Reduction Act in 2022, President Biden has made unprecedented investments in infrastructure programs that cut emissions, reduces energy use, and improve energy efficiency.  

The Home Efficiency Rebates Program offers $4.3 billion in formula grants to State Energy Offices to make home energy efficiency upgrades more affordable. 

  • Rebates for energy efficiency upgrades range from $2,000 to $8,000 per household. Rebate amounts vary depending on a household’s income, the total project cost, and how much energy the project is expected to save.
  • These grants will enable States to offer households rebates for home energy upgrade projects that are predicted to reduce energy use by 20%, with more funds available for higher energy reductions. 
  • Multifamily buildings and single-family households, including manufactured housing, are potentially eligible for rebates. Eligible households may be owner-occupied or rented. 

The Home Electrification and Appliance Rebates Program offers $4.275 billion in formula grants to states and territories and $225 million in grants to Indian tribes to make home electrification upgrades more affordable.  

  • Rebates for home electrification upgrades range from $840 to $14,000 per household. Rebate amounts vary depending on a household’s income, the total project cost, and which technologies are being installed in the home. 
  • Applications and guidance for Indian tribes are not yet available but are forthcoming this fall. 
  • Multifamily buildings and single-family households, including manufactured housing, are potentially eligible for rebates. Eligible households may be owner-occupied or rented. 
  • Eligible households with incomes at or below 80% the area median income (AMI) of where they live are eligible for up to 100% of their total project costs to be covered. Households with incomes above 150% AMI of where they live are not eligible for Home Electrification and Appliance Rebates. 

In the coming weeks, DOE will provide an array of assistance to States and territories as they determine their next steps in developing rebate programs and submitting applications. DOE’s efforts to support States and territories will include:

  • Example responses to applications questions, tailored to specific, optional rebate delivery mechanisms (e.g., weatherization programs, utility programs, other)
  • Sample wireframes to guide development of effective rebate processing systems
  • Technical assistance regarding use of DOE-centralized rebate initiation and tracking systems
  • Analytical support regarding rebate program design impact on reaching specific housing, climate, or economic objectives
  • Webinars, small group discussions, and one-on-one meetings on specific topics. 

To receive news about this assistance and other announcements from the Home Energy Rebates Program team as these efforts progress, sign up for email updates.

For more information, visit SCEP’s Home Energy Rebate programs website.