Powering Strong Communities

Department of Energy Announces Nearly $9 Billion for Home Energy Rebate Programs

The U.S. Department of Energy (DOE) recently announced nearly $9 billion will be available to states and Tribes from the Inflation Reduction Act for consumer home energy rebate programs.

DOE estimates that the home energy efficiency and electrification consumer rebates authorized will save households up to $1 billion annually.

From November through January, DOE will hold a series of listening sessions to engage a wide array of stakeholders, including direct engagement with states and Tribes, labor, industry, and others, on these consumer rebate programs.

Following the listening sessions, DOE will issue a Request for Information for public input in early 2023.

DOE anticipates that the funding to states and Tribes will be available by Spring 2023, and the rebates will be available to the public later in the year.

The Inflation Reduction Act includes multiple tax incentives and investments to bolster consumer home energy rebate programs.

Programs that states will implement include:

The home energy performance-based, whole house rebates (HOME Rebates) for:

  • Rebates for energy efficiency retrofits range from $2,000-$4,000 for individual households and up to $400,000 for multifamily buildings.
  • Grants to states to provide rebates for home retrofits.
  • Up to $2,000 for retrofits reducing energy use by 20 percent or more, and up to $4,000 for retrofits saving 35% or more.
  • Maximum rebates double for retrofits of low- and moderate-income homes. 

The high-efficiency electric home rebate program to:

  • Develop a high efficiency electric home rebate program with $225 million allocated for Tribes.
  • Includes point of sale rebates, administered by states.
  • Includes means testing and will provide 50% of the cost for incomes 80 to 150% of area median income, and 100% of the cost for incomes 80% of area medium income and below and similar tiers for multifamily buildings.
  • Includes a $14,000 cap per household, with a $8,000 cap for heat pump costs, $1,750 for a heat pump water heater, and $4,000 for panel/service upgrade.
  • Other eligible rebates include electric stoves and clothes dryers, and insulation/air sealing measures.

To learn more about home energy efficiency and electrification rebates available through Inflation Reduction Act, visit https://cleanenergy.gov/.