DOE Now Accepting State Applications for Implementation of Home Energy Efficiency Rebates

On July 27, 2023, DOE issued guidance and opened the application for states to implement two home energy efficiency rebate programs created by the IRA: the IRA section 50121 Home Energy Performance-Based Whole House Rebate (aka Home Efficiency Rebate), and section 50122 High-Efficiency Electric Home Rebate Program (aka Home Electrification Rebate). DOE’s Administrative and Legal Requirements Document provides full federal guidance and instructions for states and territories to apply for their allocation of funding. Once states and territories apply for and receive funding from DOE, the rebates will be available to consumers through state rebate programs.

Through September 30, 2031, there are $4.3 billion in formula grants available for states within the Home Efficiency Rebates Program. Within the Home Electrification Rebates Program, there is $4.275 billion available to States and $225 million available as grants to Indian Tribes, both through September 30, 2031.

At least half the funding is prioritized for households with incomes below 80% of area median income. States are asked to create Community Benefits Plans for the rebate programs to ensure the efficacy of the programs.

These Home Energy Rebate programs provide funding to allow households to reduce the upfront costs of whole-home energy efficiency upgrades, save money on energy bills, upgrade to clean energy equipment, and reduce indoor and outdoor air pollution. These rebates will save US households an estimated $1 billion annually.

Further guidance will be provided on tribal applications in a forthcoming announcement. DOE will review applications from states on a rolling basis. Once a state’s application is approved, it may launch its rebate program.