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  • Writer's pictureValerie Flores

Some States Will Offer Home Energy Rebates in 2024

Updated: Apr 28

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.

 

Schorn Wealth believes all information in this report is accurate, but we do not guarantee it. None of the information in this report or any opinions expressed constitutes a solicitation of the purchase or sale of any securities or commodities. This report is not personalized advice. Investors should research or work with an investment professional when making portfolio decisions and a tax advisor when making tax decisions. As always, the past performance of any investment does not guarantee future results. Schorn Wealth's representatives or clients may have positions in securities discussed or mentioned in its published content.

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