Department of Energy (DOE) Unveils Rules for Home Energy Rebate Programs
DOE Unveils Rules for Home Energy Rebate
Programs
The Home Efficiency Rebates and Home Electrification and Appliance Rebates programs will provide close to $9 billion for states, territories, and tribes to develop, employ, and improve residential energy efficiency and electrification projects in U.S. households. Both programs were created by the Inflation Reduction Act.
The Department of Energy’s Office of State and Community Energy Programs is working to distribute these funds so that households across the country can access these benefits, which will save consumers an estimated $1 billion annually in energy costs. These rebate programs will be administered by State Energy Offices.
Up to $5 million in initial funds is now available for states to lay the foundation for their programs. States must use at least 80% of awarded funds to provide single-family and multifamily households with discounts for efficiency upgrades that are predicted to save at least 20% of the home’s energy use.
The Administrative and Legal Requirements Document (ALRD) released on March 23, 2023, contains important information regarding funding and future program structure. This initial ALRD allows states to start planning and administration activities to prepare for submitting Home Energy Rebate Program Plans. A future ALRD will detail programmatic requirements and the process for states to use allocated funds for these rebate programs.
Potential uses of the early administrative funds include activities that would:
Increase capacity
Support strategic planning
Support workforce development
Enable a coordinated program delivery
Support consumer outreach and education
For a comprehensive list of potential uses from DOE, refer to pages 8-9 in the ALRD.
DOE strongly recommends that applicants use funds released under this ALRD to determine whether existing programs within the state could meet Home Energy Rebate Program requirements. That could create an expedited pathway to deploy the follow-on funds for the 2023-2024 heating season when the next ALRD is released.