The Inflation Reduction Act of 2022 included two provisions allowing rebates for home energy efficiency retrofit projects and home electrification and appliance projects. State energy offices will administer these home energy rebate programs, with the U.S. Department of Energy (DOE) providing guidance and oversight. States are not required to offer these rebates.
Many states have applied for or have received optional early funding to jumpstart their home energy rebate programs. I expect rebates to be available in some states starting in 2024 (possibly delayed until 2025 for others).
DOE home energy rebate limits
The maximum amounts allowed for DOE home energy rebates and the factors that help determine the rebate amounts that may be available are summarized in the table below. An installed technology may be eligible for rebates because of its predicted energy savings or inclusion on the home electrification project qualified technologies list, but not for both reasons in a single household.
Type of home energy project | Maximum allowed rebate amount per household below 80% of area median income (AMI) | Maximum allowed rebate amount per household above 80% of area median income (AMI) |
Home efficiency project with at least 20% predicted energy savings | 80% of project costs, up to $4,000* | 50% of project costs, up to $2,000 (maximum of $200,000 for a multifamily building) |
Home efficiency project with at least 35% predicted energy savings | 80% of project costs, up to $8,000* | 50% of project costs, up to $4,000 (maximum of $400,000 for a multifamily building) |
Home electrification project qualified technologies (only households with an income below 150% AMI are eligible) | 100% of project costs, up to technology cost maximums**, up to $14,000 | 50% of project costs, up to technology cost maximums**, up to $14,000 (households with incomes above 150% AMI are not eligible) |
*States may increase the maximum amount of home efficiency rebates available for low-income households — including up to 100% of project costs — upon approval from the DOE.
**Maximum rebated costs for home electrification project qualified technologies:
Energy Star electric heat pump water heater — up to $1,750
Energy Star electric heat pump for space heating and cooling — up to $8,000
Energy Star electric heat pump clothes dryer — up to $840
Energy Star electric stove, cooktop, range, or oven — up to $840
Electric load service center — up to $4,000
Electric wiring — up to $2,500
Insulation, air sealing, and ventilation — up to $1,600.
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