President Joseph R. Biden signed the landmark Inflation Reduction Act (IRA) into law on Aug. 16, 2022. The law authorizes $391 billion in spending on energy and climate change, including roughly $35 billion clean energy investments managed through DOE. The IRA represents the single largest investment in tackling the climate crisis and investing in clean energy in U.S. history.

Updated July 27, 2023.

The Inflation Reduction Act of 2022 includes two provisions authorizing $8.8 billion in rebates for home energy efficiency and electrification projects. These two provisions are:

• Section 50121: Home Energy Performance-Based, Whole House Rebates (Referred to as Home Efficiency Rebates).
• Section 50122: High-Efficiency Electric Home Rebate Program (Referred to as Home Electrification and Appliance Rebates).

Together, these provisions are referred to as the Home Energy Rebates.

Updated July 27, 2023.

Congress has structured these rebate programs to be administered by state energy offices and Indian tribes, with DOE providing guidance and oversight. The Inflation Reduction Act (IRA) authorizes the following:

• $4,300,000,000 in grants to state energy offices to develop and implement Home Efficiency Rebates programs. Section 50121 of IRA authorizes rebates based on the energy savings predicted from a home energy upgrade.
• $4,275,000,000 in grants to state energy offices to develop and implement Home Electrification and Appliance Rebates programs. Section 50122 of IRA authorizes rebates based on purchase or installation of high-efficiency home appliances and equipment.
• $225,000,000 in grants to Indian tribes to develop and implement Home Electrification and Appliance Rebates programs. Section 50122 of IRA authorizes rebates based on purchase or installation of high-efficiency home appliances and equipment.

The law specifies that DOE shall allocate funds for each state energy office in accordance with the allocation formula for the State Energy Program (SEP) in effect on Jan. 1, 2022. The IRA also identifies 3% of the rebate funds for DOE to conduct program oversight, administration, and technical assistance through 2031.

DOE is in the process of determining the way grants for Indian tribes will be allocated.

Updated July 27, 2023.

States and territories are now able to apply for Home Energy Rebates funds. Application information can be found on the Program Guidance website. The application for Tribal Home Energy Rebates is forthcoming. 

States and Indian tribes are responsible for designing and administering their own home energy rebates programs that will make the rebates accessible to households. Exact timing will vary across programs, but generally, DOE expects households to be able to access these rebates in much of the country in 2024. 

Updated July 27, 2023.

No. DOE has made funds available to states through release of the Full Home Energy Rebate Program Funds Administrative and Legal Requirements Document (ALRD). This means states and territories are now able to apply for these funds to launch local home energy rebates programs and begin distributing rebates to households. The application for Indian tribes to apply for funds are forthcoming. 

Updated July 27, 2023.

No. DOE has made applications available to states to set up the Home Energy Rebate programs. Only authorized state energy office representatives may apply for funds on behalf of their state. 

Updated Aug. 21, 2023. 

DOE does not recommend that households wait to accomplish needed home energy upgrades or projects. Households looking for home energy upgrades assistance today cannot yet access these rebates but may be eligible for other federal programs, including tax credits, the Weatherization Assistance Program, and other state, local, and utility programs.

A homeowner can access rebates through the Home Efficiency Rebates program if a project was initiated on or after Aug. 16, 2022, only if the project fulfills all DOE and state program requirements. Given the unique requirements of the Home Efficiency Program and the general complexity of whole-home retrofit projects, DOE expects that it will be difficult for states to provide rebates for projects completed before programs are operational. Please check with your state for additional information on when programs may be available. 

Updated Aug. 21, 2023.

There are many things homeowners and renters can do now to prepare for the Home Energy Rebates. If your home needs urgent energy efficiency upgrades, do not wait for the Home Energy Rebates to become available in your area. If you need financial assistance to accomplish these upgrades, existing programs, including the Weatherization Assistance Program, and tax credits may be available.  

If you are not sure which energy upgrades may be a good fit for your home, consider getting a home energy assessment from a professional. In some cases, home energy assessments may be offered at low or no cost from existing programs or be eligible for a tax credit of up to 30% of the assessment cost.

Updated July 27, 2023.

Program administrators will need to identify approved home energy contractors to work with their home energy rebates programs. Entities that are interested in becoming state-approved contractors should work with their State Energy Office on this process. 

The U.S. Department of Energy (DOE) recently released an Administrative and Legal Requirements Document (ALRD) for the State-Based Home Energy Efficiency Contractor Training Grants program. This ALRD makes available $150 million to states to develop and implement programs that provide training and education to contractors involved in the installation of home energy efficiency and electrification improvements, including improvements eligible for Home Energy Rebates funds. The State-Based Home Energy Efficiency Contractor Training Grants program will help train and certify contractors to support home energy rebates state programs.

Updated July 27, 2023.

DOE recognizes the importance of coordinating various programs that will support homeowners and residents to maximize the benefits of these programs while also preventing against "double dipping" across federal grants and rebates for the same single upgrade or project, as required by Congress. Through guidance and technical assistance, DOE will support state energy offices and Indian tribes in navigating how funds from these rebate programs may be coordinated with other new and existing programs and incentives. Some (illustrative, but not exhaustive) examples of these federal and state programs are listed below.

Home Energy Efficiency Tax Credits

There are currently available tax credits for many types of energy efficient home equipment and products. The IRA authorized an increase of tax credit incentives for many clean energy technologies to 30% of project cost as of Jan. 1, 2023. 

The U.S. Department of Treasury has determined that the IRA Home Energy Rebates programs will be treated as a reduction in the purchase price or cost of property for eligible upgrades and projects, and the consumer that receives an IRA rebate will not be required to report the value of the rebate as income. Once the Home Energy Rebates are available, eligible rebate recipients may also claim a 25C tax credit for eligible products as applicable to the cost to the consumer after the rebate has been applied. 

Please note that the information provided here does not constitute professional tax advice or other professional financial guidance. It should not be used as the only source of information when making decisions regarding design, purchasing, investments, or the tax implications of new home construction, or when executing other binding agreements. Taxpayers should consult with a tax professional and review IRS guidance regarding how the tax credit might apply to their circumstances. If there is a conflict between the information provided on this webpage and guidance or notices published by IRS, the information published by IRS shall take precedence. 

Energy Efficiency Revolving Loan Fund Capitalization Grant Program

The Bipartisan Infrastructure Law includes $250 million for the establishment of the Energy Efficiency Revolving Loan Fund Capitalization Grant Program (EE RLF Program) for energy efficiency retrofits in U.S. homes and commercial buildings. 

The EE RLF Program—as well as other federally funded programs that deliver loans or other, non-grant financial products to consumers—may be leveraged to finance any remaining costs for home energy upgrades or projects not covered by the rebate or other funding sources. 

Weatherization Assistance Program

This program began in 1976 and helps low-income households reduce their energy costs by increasing home energy efficiency. In addition to annual appropriations, the Bipartisan Infrastructure Law authorized $3.16 billion for the Weatherization Assistance Program to provide weatherization improvements and upgrades. Households with an annual income less than 200% the federal poverty level may be eligible for this program. 

Additional information about eligibility for combining, braiding, or stacking Home Energy Rebates with other programs and funding sources is available in the program guidance.

Updated July 27, 2023.

Stacking Home Energy Rebates with non-federal funds (like utility programs) is generally allowable and encouraged only if the total rebated value does not exceed the total cost of the project. Each state and existing program may have specific requirements or limitations, so it is important to check with your state energy office and utility to confirm how Home Energy Rebates can work with other programs. 

DOE is collaborating with utilities to better understand how the program guidance can be developed to provide integrated and streamlined offerings. To learn if you are currently eligible for rebates through utility programs, contact your local utility. 

Updated Aug. 21, 2023. 

Submit questions online to the Home Energy Rebates team. We will do our best to follow up promptly.

Updated July 27, 2023.

The IRA Home Energy Rebates, which feature two separate programs, are slightly different from a traditional rebate program. Home Electrification and Appliance Rebates will be provided at the 'point of sale' in participating stores if you are purchasing directly or through your project contractors. This means that the rebate amount will be deducted upfront from the total cost of your payment.

For the Home Efficiency Rebates Program, states may choose to also provide a way for homeowners or occupants to receive an upfront discount. Please check with your state for additional information on when rebates may become available.  

Updated Sept. 14, 2023
 

A household within an individual address may participate in both programs under the following conditions:

1. The household meets all income requirements for both the Home Efficiency Rebates and Home Electrification and Appliance Rebates Programs;
2. Neither the Home Efficiency Rebates nor the Home Electrification and Appliance Rebates may be combined with other Federal grants or rebates for the same single upgrade (Section 4.3.2 of the program requirements); and
3. Any additional State requirements are met.

Please contact your State to learn more about any additional requirements or limitations for participating in both programs.

Updated Sept. 14, 2023

As defined in Section 2.1 of the Program Requirements, an aggregator is defined as "an entity that engages with multiple single-family homes and/or multifamily buildings for the purpose of combining or streamlining projects as allowed by the State."

An aggregator can be a governmental, commercial, or nonprofit entity carrying out a qualified electrification project on behalf of an eligible entity for the Home Electrification and Appliance Rebates Program.

An aggregator can also be a participant and recipient of a rebate within the Home Efficiency Rebates Program, if the aggregator is approved by the State to provide a household with a rebate based on estimated energy savings.

As stated in Section 3.2.4.2 of the Program Requirements, "States must approve entities to serve as aggregators. The aggregator must comply with all program requirements. If aggregators are providing rebates based on estimated savings, the risk of recovering costs based on actual reported savings must be borne by the aggregator."

DOE also recognizes that within Home Efficiency Rebates, the term "aggregator" is used to refer to an entity that completes home upgrade projects across a portfolio of homes to receive rebates using the measured pathway. Within this program path, these entities that perform upgrades using measured savings across a portfolio of homes can be referred to as "Measured Savings Portfolio Implementers" to avoid confusion.

Updated Sept. 14, 2023

The amount of money available for Home Energy Rebates varies depending on the following factors:

• Per-household rebate limits established by the law and program administrators,
• Which technology or technologies are being installed in the home,
• Whether the project has estimated energy savings, and how those energy savings are calculated,
• The household's income, and
• The total project cost.

The table below summarizes the maximum allowed rebate amounts defined in the law for different types of home efficiency and electrification projects. Note that an installed technology may be eligible for rebates either because of its predicted energy savings or because of its inclusion on the qualified electrification project technologies list, but not for both reasons in a single household. 

*States may increase the maximum amount of Home Efficiency Rebates available for low-income households—including up to 100% of project costs— upon approval from the U.S. Department of Energy (DOE).

**Maximum rebated costs for Home Electrification Project Qualified Technologies:

• ENERGY STAR electric heat pump water heater—up to $1,750
• ENERGY STAR electric heat pump for space heating and cooling—up to $8,000
• ENERGY STAR electric heat pump clothes dryer—up to $840
• ENERGY STAR electric stove, cooktop, range, or oven—up to $840
• Electric load service center—up to $4,000
• Electric wiring—up to $2,500
• Insulation, air sealing, and ventilation—up to $1,600
   

For home efficiency rebates, the law specifies that home efficiency rebates are available to "individuals and aggregators carrying out energy efficiency upgrades of single-family homes...[and] multifamily buildings." These rebates are available to households of any income. For households with a total annual income below 80% of the area median income (AMI), rebates can cover a higher percentage of the total project costs. 

The law also specifies that Home Electrification and Appliance Rebates are available to (1) low- or moderate-income households, (2) individuals or entities that own a multifamily building with low- or moderate-income households comprising at least 50% of the residents, and (3) governmental, commercial, or nonprofit entities that are carrying out projects for low- or moderate-income households or multifamily building owners. 

A low- or moderate-income household is one where an individual or family has a total annual income less than 150% of the median income of the area in which the individual or family resides. The Department of Housing and Urban Development reports AMI statistics across the United States. 

Home Electrification and Appliance Rebates may cover up to 100% of a total qualified electrification project's cost for households with a total annual income less than 80% AMI.

Updated July 27, 2023. 

The Inflation Reduction Act sets some household eligibility requirements based on household income and the technologies being installed. Beyond these, states and territories may impose additional household eligibility restrictions based on additional criteria. For this reason, state energy offices are the best source of information regarding household eligibility.

State energy office contact information is available on the National Association of State Energy Officials website.

Information regarding Indian tribal household eligibility is forthcoming.

Updated July 27, 2023.

Because states will design programs to meet their local needs, there is not a nationally applicable list of technologies that are eligible for Home Energy Rebates. The DOE Consumer Energy Savings Hub and the U.S. Environmental Protection Agency (EPA) ENERGY STAR Product Finder are resources that can help homeowners identify energy efficient technologies that may be a good fit for their homes and potentially eligible for Home Energy Rebates.

The EPA has a fact sheet on ENERGY STAR certifications that are relevant to the Home Electrification and Appliance Rebates. 

Updated July 27, 2023. 

All technologies that are eligible for Home Electrification and Appliance Rebates are included in the law (Inflation Reduction Act Section 50122). They are as follows:

• ENERGY STAR electric heat pump water heater
• ENERGY STAR electric heat pump for space heating and cooling
• ENERGY STAR electric heat pump clothes dryer
• ENERGY STAR electric stove, cooktop, range, or oven
• Electric load service center
• Electric wiring
• Insulation, air sealing, and ventilation

Any technology that a household wants to install that is not eligible for a rebate may be installed in the home without a federally funded rebate. 

Updated July 27, 2023. 

Both the Home Efficiency Rebates and the Home Electrification and Appliance Rebates offer incentives for insulation installations. Home Efficiency Rebates may be issued for eligible home energy upgrades that are predicted to save households at least 20% of their annual energy use, which may include insulation installations. Home Electrification and Appliance Rebates include "insulation, air sealing, and ventilation" as a qualified electrification project in the law. 

States may choose to provide rebates for all, or some, of the allowable products so it will be important to check with your state on available rebates. 

Updated Aug. 21, 2023. 

Home Energy Rebates are not available to reduce the cost of solar photovoltaic (PV) installations. Households may receive rebates for other technology installations in coordination with PV installations (e.g., Home Electrification and Appliance Rebates for electrical wiring upgrades). Solar PV installations may be eligible for other federal incentives, including tax credits.

Updated Aug. 21, 2023.

States may choose to provide rebates for all, or some, of the allowable products so it will be important to check with your state on available rebates.

Updated Aug. 21, 2023. 

The Inflation Reduction Act authorizes states to provide rebates for Home Efficiency Rebates begun on or after enactment of the law on Aug. 16, 2022. Given the requirement that states must establish programs that ensure compliance with the law (e.g., eligibility of household, technology, program reporting) in addition to their own requirements, it will be difficult to offer rebates for projects completed before program requirements are fully defined and programs are operational.  

The law does not authorize states to offer Home Electrification and Appliance Rebates retroactively.

Updated July 27, 2023

The U.S. Department of Energy strongly encourages states to ensure programs are designed to provide households with an upfront discount on products at point of purchase for all Home Energy Rebates. In these cases, consumers will not need to wait to get money back on their purchase.  

For the Home Electrification and Appliance Rebates, the Inflation Reduction Act requires states to identify a plan for how rebates will be available to consumers at point of sale.  

Updated July 27, 2023. 

As stated in Section 4.2.2 of the Program Requirements, states may allow a household to receive a rebate for a qualified electrification project as part of new construction within the Home Efficiency and Appliance Rebates Program. However, states are not required to provide rebates for new construction. Please check with your state energy office to see if the rebate for new construction will be available in your state. 

New construction is not eligible for the Home Efficiency Rebate Program.

Updated Sept. 14, 2023

Rebates for equipment upgrades are subject to income eligibility, per Sections 3.1 and 4.1. of the Program Requirements, and whether those rebates may be available for a second home will depend on your state program. Please check with your state energy office.

Updated Sept. 14, 2023

Under the Home Efficiency Rebates Program and the Home Electrification and Appliance Rebates Program, the owner of renter-occupied buildings, including both single- and multi-family buildings, may apply for rebates.

Depending on the rebate program, building owners may apply for rebates across their portfolio in an aggregated manner.

For more on rebates conditions and levels see sections 3.1.2 and 4.1.2 of the Home Energy Rebates Program Requirements & Application Instructions. Rebate design and delivery will be determined by each state's energy office, consistent with DOE requirements. We recommend you reach out to and follow guidance from your state's energy office about accessing and applying for rebates.

Updated September 25, 2023

Under the Home Electrification and Appliance Rebates Program, rebates paid must not exceed a total of $14,000 per dwelling unit. For more on rebate levels and conditions, see Section 4.1.2 of the Home Energy Rebates Program Requirements & Application Instructions.

Updated September 25, 2023

Home Energy Rebates are only available for residential buildings, which include single family homes and multi-family buildings.  The Home Energy Rebates Program Requirements & Application Instructions defines a multifamily building as a single building containing at least two dwelling units used for residential purposes. Owners of the renter-occupied buildings may access the rebates.

Ineligible commercial uses include but are not limited to hotels/motels, dormitories, assisted living facilities that include hospital amenities, and correctional facilities.

For mixed-use buildings, a State may elect to treat the residential portion of the building as a multifamily building.

For more on rebates conditions and levels see Sections 3.1.2 and 4.1.2 of the Home Energy Rebates Program Requirements & Application Instructions.

Updated September 25, 2023

An official Notice of Intent is not required for Home Rebates applications. 

Updated Aug. 21, 2023. 
 

DOE will accept and review applications from states and territories on a rolling basis. States and territories are strongly encouraged to apply to these programs as soon as they can to support more rapid program deployment. DOE will provide states notice 90 days prior to closing the Early Administrative Funds Administrative and Legal Requirements Document.

Updated July 27, 2023.

DOE is currently reviewing application for those state energy offices that have applied. DOE is on track to begin awarding funds by the end of the fiscal year. 

Updated Aug. 21, 2023. 

An official Notice of Intent is not required for Home Rebates applications. However, as stated in section 1.0 of the Program Requirements, "if the state does not convey to the DOE project officers that it plans to submit an application by Aug. 16, 2024, the state's funding will be reallocated to other states."

Updated Aug. 21, 2023.

DOE shall allocate funds for each state energy office in accordance with the allocation formula for the State Energy Program (SEP) in effect on Jan. 1, 2022. Read more about the SEP allocation formula. 

Formula funds for each state energy office will be reserved and awarded depending on the successful submission of complete applications to DOE. 

Updated July 27, 2023.

DOE will accept and review applications from states and territories on a rolling basis. States and territories are strongly encouraged to apply to these programs as soon as they can to support more rapid program deployment.

States should notify DOE if they intended to the decline the funds for either or both Home Energy Rebate programs no later than Aug. 16, 2024. States should submit applications to DOE for either or both Home Energy Rebate programs no later than Jan. 31, 2025.

Updated July 27, 2023.

The U.S. Department of Energy is in the process of developing requirements and protocols for approving modeling software and monitoring and evaluation (M&V) methodologies. 

Updated Aug. 21, 2023. 

Information on software platforms for the Home Energy Rebates is hosted on the Pacific Northwest National Laboratory website. 

Updated Aug. 21, 2023.  

DOE is in the process of developing guides for braiding with existing programs, as permitted within the limitations set in the law/IRA. DOE will also be providing technical assistance to states that seek support in program braiding.

The Home Energy Rebates website for program recommendations is updated regularly with resources and guidance as they become available. 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.

Updated Aug. 21, 2023. 

Due to the multi-step nature of income verification processes, DOE is not able to provide a tool specific to assessing and verifying income. DOE is committed to providing technical assistance for states seeking support on developing their own income verification tools or working with software providers for this purpose. 

Updated Aug. 21, 2023. 

DOE is working on developing this list. When ready, the list will be provided on the Home Rebates Recommendations webpage, and DOE will provide an announcement through a program update email.

Updated September 25, 2023

While this is helpful information, there is no requirement that states must identify the implementer(s) selected by states. 

Updated Aug. 21, 2023. 

Within the scope of the program requirements, states may choose to restrict program eligibility to a narrower set of households, existing conditions, and/or technologies than is allowable under the law. States are not required to offer Home Energy Rebates for all technologies or all household types identified within the Inflation Reduction Act. 

Updated Aug. 21, 2023. 

DOE has released the intended formula for allocating funds to Indian tribes in the Federal Register. Tribes and other stakeholders may see more information, including estimated allocations for each tribe using the intended formula, on the Tribal Home Electrification and Appliance Rebates webpage.

Formula funds for each Indian tribe will be reserved and awarded depending on the successful submission of completed applications that are approved by DOE. 

Updated Aug. 21, 2023.

DOE is currently developing the Tribal Home Electrification & Appliance Rebates program requirements, with a goal to release the document in the fall of 2023. 

Updated Aug. 21, 2023.