IRA Section 50121 – Home Energy Efficiency Rebate Program

Section 50121 of the IRA appropriates $4.3 billion to the Department of Energy (“DOE”) to carry out a program to award grants to state energy offices to develop and implement a Home Owner Managing Energy Savings (“HOMES”) rebate program. HOMES rebate programs operated by state energy offices must “provide rebates to homeowners and aggregators for whole-house energy saving retrofits” that begin on or after the date of enactment of the IRA and are completed by September 30, 2031. Section 50121 of the IRA caps the amount of rebates that may be provided through state HOMES rebate programs that receive grants from DOE. Different caps are established for different types of projects. State energy offices may, with the approval of the Secretary of Energy, provide larger rebates for low- or moderate-income households whose total annual income is less than 80 percent of the median income of the area in which the individual or family resides. However, a rebate provided under a HOMES rebate program may not be combined with any other Federal grant or rebate.

DOE must not use more than 3% of the funds appropriated for administrative expenses and to provide technical assistance on activities under section 50122 of the IRA. A State energy office receiving funds under the section may not use more than 20% of funds received for planning, administration, or technical assistance activities.

The funds appropriated under section 50121 shall remain available until September 30, 2031.