Indiana’s energy rebate program starts slow, leads other states

TL/DR –

Since its inception in May, only around 1,400 Indiana residents have applied for rebates on energy-saving appliances and home retrofits provided by the state’s rebate program, funded by the federal Inflation Reduction Act. The Office of Energy Development (OED), which oversees this program, is satisfied with the level of enrollment and expects to award all the funds within three years. The OED has also planned a larger marketing campaign for early next year, is assessing more than 170 multi-family complexes for energy efficiency upgrades, and is seeking a way to assist residents whose homes are currently unfit for upgrades.


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Indiana’s Pioneering Energy Rebate Program Gains Momentum

Since its inception in May, the energy rebate program in Indiana has attracted about 1,400 Hoosiers who are seeking money-saving opportunities on energy-efficient amenities like insulation and water heaters. This is a novel initiative for states, and Indiana is notably ahead in its execution.

Indiana is among a select group of five states that has fully rolled out its rebate program, Indiana Energy Saver, backed by funding from the federal Inflation Reduction Act. An additional seven states have also made funds available for energy-efficient appliances, although not for complete home retrofits.

Expectations and Future Plans

The former state senator Jon Ford, who now heads Indiana’s Office of Energy Development (OED), expressed satisfaction with the enrollment numbers given the lack of extensive marketing for the program. He optimistically projected that all the funds would be granted within three years. As Ford explained, “This is a new program and we are… constantly looking at ways to improve this program as we move along”.

Looking ahead, the OED plans to launch a larger marketing campaign in the new year and is currently evaluating more than 170 multi-family buildings, including apartment complexes, for potential energy efficiency upgrades. The state is also seeking solutions for residents whose homes, due to issues such as mold, do not currently qualify for the upgrades.

The Challenges and Benefits of Implementation

While initiating rebate programs can be daunting, the benefits far outweigh the challenges, experts argue. For instance, Therese Dorau from the Environmental Resilience Institute at Indiana University, who is working to educate Indiana cities about heat pumps, acknowledged the concerns about upfront costs and enrollment procedures. The OED reported that an additional 1,500 people have begun applying for the home energy rebate program, but have not yet completed their applications.

Emily McPherson from the Center for Energy and Environment, who has experience rolling out a heat pump program in Minnesota, stressed the importance of ensuring contractors not just install heat pumps, but also understand and communicate the benefits to their customers. She predicts a boost in enrollment numbers as the public becomes more familiar with the program.

Rebates and Beyond

Dorau advised that even those not planning to utilize the rebates can benefit greatly from processes like the Indiana Energy Saver application. Residents interested in the rebate program can visit IndianaEnergySaver.com. Ford noted that the program can also assist people with their applications. Dorau also mentioned that some residents may be eligible for additional funding for upgrades through their utility, credit union, or the Indiana Energy Independence Fund.


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