The following are questions and answers regarding the Home Energy Rebates administered by the U.S. Department of Energy (DOE) and funded by the Inflation Reduction Act (IRA). For more information, please visit the Home Energy Rebates page.

Program Overview Questions

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 rebates 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 Rebates 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 Rebates 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 rebates 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

For the consumer protection plan, on-bill tariff programs are not considered "financing" for the purpose of complying with the following installation provisions of section 4.2.5 (page 79) of the Program Requirements and Application Instructions:

Ensure an ability to repay determination that does not include projected savings from an energy report because expected savings may not materialize due to household and market developments.

Ensure a disclosure and cooling off period. Clear, written advance disclosures should be required, with a 7-day waiting period between the disclosure and the contract signing. This waiting period should only be removed in a personal emergency (see Truth in Lending Act), where the homeowner, in their own handwriting, describes the emergency and the need for the emergency work and their understanding that they are waiving the waiting period. In non-emergency circumstances, there should also be a 3-day right to cancel after the contract has been signed (such that the work is not done during that period).

On-bill tariffs still must follow all other consumer protection plan requirements.

Tenant protections related to WAP can vary significantly across states. DOE used the National Housing Law Project's compilation of WAP tenant protections to guide our decision-making as well as discussions with affordable housing stakeholders. The Home Energy Rebate's two-year rental affordability requirement will help ensure that investments intended to serve low-income housing directly benefit this group and that upgrades do not lead to unaffordable housing.

Updated Oct. 10, 2023

No, they do not apply to the Home Energy Rebates programs.

Depending on a state's program design, retailers may apply to the state for reimbursement of rebates applied at point of sale or installation. Retailers that choose not to use the API must provide the required information through another means offered by the state.  An example would be a website where receipts, invoices, and/or other required data could be uploaded and sent to the state program for rebate processing to remit payment.  While this may require longer processing times, states are expected to allow this approach in addition to the API.

DOE has developed an application programming interface (API) that states and implementers can access to allow a simplified comparison to the relevant AMI (both the 80% and 150% income levels that reflect the dwelling unit’s location and number of occupants). DOE will also provide this information as a full dataset but recommend that states use the API to ensure that the AMI information is up-to-date.

Yes, the installation incentive is in addition to the rebate maximum per dwelling unit.

Under the Home Electrification and Appliance Rebates program, an eligible entity representative is a governmental, commercial, or nonprofit entity carrying out a qualified electrification project on behalf of an eligible entity (i.e., a low-income household (less than 80% AMI), a moderate-income household (80%-150% AMI), or an individual or entity that owns a multifamily building not less than 50% of the residents of which are low- or moderate-income).

No. Projects must be installed by a program-approved contractor to be eligible for Home Efficiency Rebates.

Household and Technology Eligibility Questions

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. 

Type of Home Energy Project Maximum Allowed Rebate Amount Per Household Below 80% Area Median Income (AMI)  Maximum Allowed Rebate Amount Per Household Above 80% Area Median Income (AMI)
 
Home Efficiency Project with at least 20% predicted energy savings

80% of project costs, up to $4,000* 

50% of project costs, up to $2,000 (maximum of $200,000 for a multifamily building)
Home Efficiency Project with at least 35% predicted energy savings 80% of project costs, up to $8,000*  50% of project costs, up to $4,000 (maximum of $400,000 for a multifamily building)
Home Electrification Project Qualified Technologies (only households with an income below 150% AMI are eligible) 100% of project costs up to technology cost maximums**; up to $14,000  50% of project costs, up to technology cost maximums*; up to $14,000 (households with incomes above 150% AMI are not eligible)

 

*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. 

Home Energy Rebates have two separate programs: the Home Electrification and Appliance Rebates program and the Home Efficiency Rebates program.

If you are seeking a rebate for the Home Electrification and Appliance Rebates program

The Inflation Reduction Act (IRA) specifies a list of qualified products and building materials that may be eligible for a rebate, and your State Energy Office (SEO) will determine which products and materials  are eligible for rebates within your state or territory.

Your SEO may provide rebates for the following products:

  • ENERGY STAR-certified electric heat pump water heater
  • ENERGY STAR-certified electric heat pump for space heating and cooling
  • ENERGY STAR-certified electric heat pump clothes dryer
  • ENERGY STAR-certified electric stove, cooktop, range, or oven (note: Energy Star-certified ovens are pending at the time of this update)
  • electric load service center (i.e., electrical panel)
  • electric wiring
  • insulation, air sealing, and mechanical ventilation

States may only provide rebates for products within this list. This program is only for low- and moderate-income residents.

If you are seeking a rebate for the Home Efficiency Rebates program

Unlike the Home Electrification and Appliance Rebates program, the IRA does not establish a specific list of eligible products and building materials for this program. Rather, this program provides rebates for a combination of energy-efficient product and building material installations, which may involve various products and materials, that together must save at least 20% of your household's total energy use.  Please note that when it comes to space heating & cooling appliances and water heaters, there is an additional DOE requirement for this program that they must be Energy Star-certified at the time of installation. Your SEO will determine through its program design which specific products and building materials may be eligible for your home upgrade or retrofit.  

Unlike the Home Electrification and Appliance Rebates program, residents of all income levels may be eligible for this program, but it only applies to retrofits for existing homes and buildings.

You can find the contact information for your SEO on the NASEO website. You may also refer to FAQs #30 (Are rebates available for new construction?) and #58 (May states narrow Home Energy Rebate eligibility for households or technologies?) for additional information on this topic.  

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.

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

States will determine if such upgrades are eligible in their programs. If states allow such upgrades, DOE requires that such work benefit individual dwelling units in addition to a common area; the benefit to individual units may be any of the following: energy savings, cost savings, pollution reduction, or other health and safety benefits.

Updated Oct. 4, 2023

Yes, except for the Weatherization Assistance Program (WAP) and the Women, Infants, and Children (WIC) program. If the applicant is enrolled in one of the programs listed in the Federal Programs Approved for Categorical Eligibility except WAP and WIC, the applicant is automatically eligible.  WAP and WIC participants may be eligible as well, but each state will need to examine its own income criteria for WAP and WIC to ensure that they do not exceed 80% AMI.  States may require proof of enrollment status, i.e., proof that the applicant has been enrolled in the recent months or is currently enrolled.

Yes, a nonprofit entity, referred to as an eligible entity representative, carrying out a qualified project on behalf of an eligible entity, such as a multifamily building owner, may access a rebate on  behalf of the eligible entity.

Yes, as long as the energy savings from the Home Electrification and Appliance Rebates (HEAR) Program project is not used in the savings estimate or measurement of the Home Efficiency Rebates (HER) Program upgrade, a qualified home may receive a rebate for a HEAR qualified product and then participate in the HER program.

Yes, with conditions. Contractors either conducting the post install visit or providing the certificate must be a third-party per the Program Requirements. Per section 2.1, a third party is defined as "an organization conducting work on behalf of a State's Home Energy Rebates program that has no financial or professional conflict of interest." A home audit and the post-installation inspections may be conducted by the same contractor as long as that contractor is not also performing the retrofit on that home.

Yes, a state may choose to limit the availability in this manner.

Yes, a state may choose to limit the availability in this manner.

Yes, states may allow manufactured and mobile homes to be eligible housing types for Home Energy Rebates.

No. Inflation Reduction Act section 50122(c)(3)(A)(iii) states that the rebate amount of $840 is for either "an electric stove, cooktop, range, or oven; or an electric clothes heat pump dryer." (Emphasis added.) Therefore, under the Home Electrification and Appliance Rebates, consumers can only get a rebate for either a kitchen appliance or a clothes dryer, not both, even if the total cost of both does not exceed $840.

Under the Home Electrification and Appliance Rebates program, accessing rebates to electrify heat that can meet the primary heating source requirement does not depend on whether the home has an existing duct system. For example, if the capacity needed to meet the primary heating source requirement for a dwelling unit is 36,000 BTUs, it may be met via a single electric heat pump unit for space heating and cooling with rated capacity of 36,000 BTUs connected to a ducted system, or it may be met via two ductless mini-split units with rated capacity of 18,000 BTUs each. For ductless homes using delivered fuels such as heating/fuel oil or propane, states may reimburse households for more than one ductless mini-split heat pump unit, subject to the rebate cap for space-conditioning heat pump and based on household income levels, if those ductless units are purchased at the same time to satisfy the primary heating source requirement in the aggregate as a system functionally equivalent to a ducted system using a larger single electric heat pump unit. States must ensure that the aggregated capacity of mini-split units paid for by DOE's IRA rebates is not greater than the 100% of the heating load of the dwelling unit. States may use non-federal and non-federally sourced grants or rebates to pay for additional (e.g., emergency) heating load capacity from mini-split units as desired, particularly in use cases where a state wants to encourage the use of mini-splits as the only heating source for a home.

Yes, under the Home Electrification and Appliance Rebates program, states may provide rebates to income-eligible households if the addition of the rebated heat pump at the dwelling unit will allow the combined heat pumps to replace the existing fossil-fuel heating appliance as the primary heating source at the dwelling unit. However, the rebated heat pump may not be used to merely replace the existing heat pump where the replacement does not lead to the replacement of the fossil-fuel heating appliance as the primary heating source.

The income requirements for multifamily buildings apply to occupied units at the time of income verification. For example, if 56 units in a 60-unit building are occupied, at least 28 of them must be deemed low-income (i.e., the household earns less than 80 percent of the area median income) for the building to be eligible for low-income rebate levels. If an applicant applies for low-income rebate levels for projects in unoccupied units, those units are still subject to the renter protection and affordability requirements found in Sections 3.1.3 and 4.1.3 of the Program Requirements and Application Instructions.

Yes, under the Home Electrification and Appliance Rebates, tenants of multifamily buildings are eligible for rebates with their building owner’s permission and subject to requirements in their state. See Section 3.1.3 and 4.1.3 of the Program Requirements and Application Instructions.

The owner of an income-qualified multifamily building may access rebates on behalf of all or any portion of units occupied by eligible households.

Yes, if the rebated heat pump is ENERGY STAR-certified and serves as the primary heating source.

Yes, as long as the entity (e.g., partnership, LLC, etc.) that owns the building agrees in writing that the part owner who will apply for and receive the rebate (1) is authorized to do so, (2) will be the sole recipient of the rebate on behalf of the entity, and (3) is authorized to carry out the work on behalf of the entity.  

Yes.

State Application Questions

Early Administrative Funds Administrative and Legal Requirements Document (ALRD)

Yes. For this program, states may exclude items approved in the Home Electrification and Appliance Rebates and focus solely on envelope improvements as long as the minimum energy savings threshold is met and the project contains a "major upgrade" as defined in Section 2.0 of the Program Requirements and Application Instructions.

The income requirements for multifamily buildings apply to occupied units at the time of income verification. For example, if 56 units in a 60-unit building are occupied, at least 28 of them must be deemed low-income (i.e., the household earns less than 80 percent of the area median income) for the building to be eligible for low-income rebate levels. If an applicant applies for low-income rebate levels for projects in unoccupied units, those units are still subject to the renter protection and affordability requirements found in Sections 3.1.3 and 4.1.3 of the Program Requirements and Application Instructions.

Yes, under the Home Electrification and Appliance Rebates, tenants of multifamily buildings are eligible for rebates with their building owner’s permission and subject to requirements in their state. See Section 3.1.3 and 4.1.3 of the Program Requirements and Application Instructions.

Full Program Administrative and Legal Requirements Document (ALRD)

The owner of an income-qualified multifamily building may access rebates on behalf of all or any portion of units occupied by eligible households.

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 Rebates programs no later than Aug. 16, 2024. States should submit applications to DOE for either or both Home Energy Rebates 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. 

The Assistance Listing Number, formerly known as Catalog of Federal Domestic Assistance (CFDA), can be found on the title page of the Home Efficiency Rebates & Home Electrification and Appliance Rebates ALRD. The CFDA Number for this ALRD is: 81.041.

Updated Oct. 4, 2023

Section 4.2.4 states "[a]s an initial matter, a State must identify a pre-defined set of home pre-condition(s) and/or scope of work scenario(s) that will constitute unacceptable risk of raising utility bills based on the State's rate structure, existing equipment and fuel type, and other relevant factors."

Examples of home conditions or scenarios may include, but are not limited to:

  1. An uninsulated home that is converting from a gas to electric heating system.
  2. A home that resides in a region where electric rates are significantly higher than gas rates.
  3. The installation of equipment that is improperly sized to the needs of the home.

 The Home Energy Rebates Program at DOE is available to work with states to help develop basic guidelines regarding home age, levels of insulation, level of air sealing/duct sealing (to be assessed visually) among other factors that would indicate that bills could increase.

Updated Oct. 10, 2023

No. The two-day reference on page 27 and page 65 of the Program Requirements is NOT a requirement, but it was merely an illustrative example. For the Home Electrification and Appliance Rebates program, it may be advisable to verify income as promptly as possible to preserve the ability to cancel erroneous point-of-sale rebates as needed. For the Home Efficiency Rebate program, timing may not be as critical as the other program since those projects are not typically emergency replacements.

Updated Oct. 10, 2023

Yes, per section 3.2.4 of the Program Requirements & Application Instructions, "[s]tates may choose to implement the modeled path, measured path, or both".

States are encouraged to explore new and innovative programs through pilot programs. If a State would like to use only a portion of funds for a pilot effort, the State should contact their Project Officer to determine if funding can be allocated for a pilot program.

Yes, but SEO must first obtain DOE approval of the proposed changes through the change request and complete the modification process that may result in an award modification, depending on the scope of the change.

The Inflation Reduction Act (IRA) defines the thresholds for low-income and moderate-income households as less than 80% and 150% of area median income, respectively. A state may not redefine these thresholds. However, a state could prioritize a subset of low-income households (e.g., 60% AMI) or moderate-income households (e.g., 120% AMI), to serve first with Home Energy Rebates.

A "deemed" savings approach as used in utility programs is not allowed in the Home Energy Rebates programs.

Home Energy Rebates do not cover the cost of asbestos testing or mitigation, or any other improvement that falls outside the program requirements. However, DOE encourages state energy offices to coordinate with state or local programs that offer asbestos testing and mitigation by providing timely referrals before a home energy upgrade begins or by identifying or training qualified contractors who can add such services. 

To identify federal grant programs, the authoritative source is available at https://sam.gov/content/assistance-listings. This lists all of the available funding programs to all levels of government, nonprofit organizations, for-profit businesses, and other eligible entities. You can visit https://www.grants.gov/search-grants within grants.gov, which allows you to search, filter, and apply for specific opportunities to receive funding from one of these programs.  

Yes, states may determine the retail channels for which rebates will be provided. States may choose to work with a variety or retailers, including "big box" stores as well as independent retailers. States may also choose to work directly with contractors and direct installers. So long as states can verify income requirements and provide point-of-sale rebates, the channels for which rebates are offered is at the state's discretion.

Stacking may be permitted if Home Efficiency Rebates and Home Electrification and Appliance Rebates do not fund the same upgrade or qualified electrification project, as in they can be used for different upgrades or qualified electrification projects as components of the total project. 

For example, Home Efficiency Rebates may pay for envelope measures and Home Electrification and Appliance Rebates may pay for a heat pump for heating and cooling. 

For additional information, please see this FAQ: "Is there a guide describing how to braid or blend Home Energy Rebate funds with other programs?"

A state may adopt its own definition of a disadvantaged community for the purposes of its Justice40 approach within its Community Benefits Plan, see sections 3.1.4 (page 20) and 4.1.4 (page 57). 

However, regardless of how a state defines a disadvantage community, it must ensure that at least 40 percent of total rebate funds be allocated to low-income households and an additional 10 percent for low-income multifamily households. The state must verify these households as low-income at the household or multifamily-building level. Being located within a geographic area designated as a disadvantaged community is insufficient to meet this requirement. 

A state can choose one, two, or all three of the factors of "time, location, or greenhouse gas emissions" to include in their plan on how to value energy savings.

The term "maximum allowable project cost" in Table 8 in Section 4.1.8 refers to the total invoice amount of the qualified energy project. "Project cost rebate levels" refers to the rebate amount that can be applied against the invoice.

No, the Coronavirus State and Local Fiscal Recovery Funds is not a federal grant for the purpose of implementing Home Energy Rebates.

Under the Home Efficiency Rebates, a state should provide a rebate to the eligible recipient within four weeks of receiving an eligible application for modeled programs or within 60 days of submitting an invoice for measured programs. The clock starts once the state receives a complete rebate application.

The method for which rebates are provided to the contractor is at the state's discretion and must follow their internal procurement and invoicing procedures.

No. States may initially narrow the scope of the program (e.g., allocate more funds to lower-income households) as long as the rebates are open to all eligible residents at some point in the life of the program. If a state makes changes to its program design from the plan described in the DOE-approved application, the state must submit supplemental materials to DOE to approve the changes.

Yes. For this program, states may exclude items approved in the Home Electrification and Appliance Rebates and focus solely on envelope improvements as long as the minimum energy savings threshold is met and the project contains a "major upgrade" as defined in Section 2.0 of the Program Requirements and Application Instructions.

Yes. If states have a plan to allow point-of-sale rebates via retailers, distributors, and point-of-installation rebates via contractors, subject to full program requirements, states may allow eligible entities to apply for and receive rebates via mail or online after the program-qualifying purchase has been made, installed, and verified. 

Generally, the state implementer could provide the third-party post-installation certificate if there is no conflict of interest with the installer of the project that is being certified.

Under IRA Section 50121, the state must provide a $200 Disadvantaged Community (DAC) incentive to a contractor or aggregator for the Home Efficiency Rebates. Under IRA Section 50122 (which outlines the Home Electrification and Appliance Rebates), the state must provide an additional amount of not more than $500 to eligible entity representatives for installations completed. The state may allocate up to $200 of that total amount for installations completed in DACs.

No.

Yes. The state may use rebate funds for “activities directly related to delivery of rebates to eligible rebate recipients” to meet the program’s requirement to inform homeowners and multifamily building owners “of additional program funding available from non-Federal funds and grants.” 

No.

A contractor who is newly certified, qualified, or licensed to perform work. Experienced contractors are not “new” solely because they are not known to their state energy office. 

Yes. In accordance with industry norms, open-source software must be maintained through a governance process that facilitates updates through stakeholder collaboration, and must be available without restriction under an open license.

Rebate applicants must certify, under the penalty of law, that the information they are submitting is true. This certifying statement is interchangeably referred to in the program requirements as either a “signing statement” or an “affidavit.” State rebate programs will develop their own certifying statement in accordance with DOE requirements. 

Tribal Application Questions

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.

 

Not seeing an answer to your question? 

State, territorial, Tribal, and District of Columbia energy offices; rebate program implementers; industry, research and advocacy organizations; and general contractors: Visit our form.

Homeowners, consumers and other stakeholders: Email IRAHomeRebates@hq.doe.gov.