New Guidance Released for Home Energy Rebates Program

The U.S. Department of Energy recently released new guidance that would pave the way for releasing billions of dollars in State Home Energy Rebate funds. These funds were originally authorized through the Inflation Reduction Act and fully allocated to states during the Biden Administration. However, most of the funding had been placed on hold while the Trump Administration conducted a review of the program, according to a press release from the Building Performance Association.

The revised guidance introduces several changes, including new restrictions on fuel-switching projects, the elimination of certain state planning requirements, and the restoration of the rebate program names established in the law. The HOMES (Home Owners Manage Energy Savings) program provides performance-based, whole-home rebates, with larger incentives available for projects that achieve greater verified or projected energy savings. The HEEHR (High-Efficiency Electric Home Rebate) program offers fixed rebate amounts for qualifying energy-efficient equipment and home upgrades.

Both programs provide enhanced incentives for low- and moderate-income households, although eligibility for HEEHR rebates is limited to households earning no more than 150% of the area median income.

“Rising energy bills are a key part of the housing affordability crisis in America. The energy efficiency measures and upgrades that are supported by these rebates will help lower bills and make homes more comfortable—this is welcome news for homeowners and the contractors who serve them,” said Kara Saul-Rinaldi, Chief Policy Officer of the Building Performance Association.