Biden-Harris Administration Announces State And Tribe Allocations For Home Energy Rebate Program

The Biden-Harris administration, through the U.S. Department of Energy (DOE), announced nearly $9 billion will be available to states and Tribes from President Biden’s Inflation Reduction Act for consumer home energy rebate programs, enabling communities to make homes more energy efficient, upgrade to electric appliances, and cut energy costs. DOE estimates that the historic home energy efficiency and electrification consumer rebates authorized will save households up to $1 billion annually. Inflation Reduction Act programs will include the installation of clean energy equipment like heat pumps that will lower energy costs for American families, decrease dependence on fossil fuels, and help the U.S. meet the President’s goal of weatherizing two million homes and our economy-wide climate goal of cutting greenhouse gas emissions at least in half by the end of the decade.

“As energy prices remain high, this Administration is working to cut costs for working families and businesses through historic investments for consumer rebates for more efficient home improvements and energy-efficient appliances nationwide,” said U.S. Secretary of Energy Jennifer M. Granholm. “President Biden’s agenda means states will have greater resources to meet their consumers’ needs and more rapidly achieve home electrification on the path to a net-zero emissions economy.”

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 which are critical for improving local air quality and public health, and cutting U.S. greenhouse gas emissions. With nearly $9 billion to be made available through states and Tribes for consumer home energy rebate programs, focused on low-income consumers, communities will be able to electrify home appliances and perform energy efficient retrofits.

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.

DOE’s Office of State and Community Energy Programs works with state and local organizations to significantly accelerate the deployment of clean energy technologies, catalyze local economic development and create jobs, reduce energy costs, and avoid pollution through place-based strategies involving a wide range of government, community, business and other stakeholders.

Table 1. Inflation Reduction Act Rebate Allocations to States*

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