Home energy rebates from Inflation Reduction Act may come soon
TL/DR –
The US federal government is issuing $8.8 billion for Home Energy Rebates programs through states, territories, and tribes. These rebates, worth up to $14,000 or more per household depending on a state’s program design, are designed to offset costs for homeowners and landlords who make certain efficiency upgrades to their property. The rebates’ value and eligibility vary according to factors like household income, with more money flowing to low and middle earners, and the Department of Energy expects these programs to save households $1 billion a year in energy costs due to higher efficiency.
Home Energy Efficiency Rebates Coming Soon
The Inflation Reduction Act introduced rebates for home energy efficiency, available to many consumers soon. The US government will distribute $8.8 billion through the Home Energy Rebates program via states, territories, and tribes. New York has received the first approval, pocketing an initial $158 million.
Overview of the Rebate Program
Homeowners and landlords can avail of the federal rebates, gaining up to $14,000 per household for specific efficiency upgrades. Rebates will help offset costs for installing electric heat pumps, new insulation, electrical panels, and Energy Star-rated appliances. The Department of Energy (DOE) expects these efforts to save households $1 billion in energy costs yearly.
Pending State Applications
Eleven states, including California and Texas, have applied for funding, and many others are in advanced stages of their application process. All program launches are expected by next year, with application deadlines set for January 31, 2025.
Inflation Reduction Act and Rebates
The Inflation Reduction Act, signed into law by President Biden in 2022, provides $369 billion for climate change policies. The Act divides $8.8 billion in rebate funding between the Home Efficiency Rebates and the Home Electrification and Appliance Rebates programs. While both aim to reduce household energy use and greenhouse gas emissions, they differ in their approach.
Rebate Programs Details
The Home Electrification and Appliance Rebates program offers consumers a maximum amount for purchasing specific technologies. The rebate program can pay up to $14,000 to consumers, mainly accessible by low- and moderate-income households. The Home Efficiency Rebates program, on the other hand, offers rebates based on the overall energy saved by households via efficiency upgrades.
Accessing Rebates
Rebates are not stackable. Consumers can, however, use these rebates with existing state and local utility programs. Point-of-sale rebates are delivered either at retailers as outright discounts or from contractors subtracting the rebate from the project cost. The specifics will differ by state, with each state required to publish an approved contractor list.
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