Thanks to the Inflation Reduction Act (IRA), a future where all homes are energy-efficient is now within reach. One of its most impactful approaches is the HOMES rebate program. With policy roots as far back as 2009, it gets to the heart of decarbonization by setting aside $4.3 billion specifically for whole home retrofits.
Austin, TX (October 6, 2022)—CLEAResult, the largest provider of energy efficiency services in Canada for residential and commercial and industrial (C&I) customers, is gearing up to quickly support the new and expanded energy savings programs announced by Ontario’s Ministry of Energy, Todd Smith, on Tuesday.
While the IRA has something for everyone, the most extensive benefits are focused on low-and moderate-income customers (LMI). Traditionally, these folks pay much higher proportions of their household income toward electricity, and therefore, need the most help. Since many LMI communities also live in the least energy-efficient homes, the opportunity for energy savings is even greater. Consumers can potentially get up to $14,000 or more toward the partial or full cost of an efficiency project.
The IRA has allocated $8.8 billion for two initiatives: the Home Efficiency Rebates Program (previously HOMES), which offers up to $8,000, and the Home Electrification and Appliance Rebates Program (previously HEEHRA), which offers up to $14,000.
States and territories can apply to one or both of the IRA’s home energy rebate programs and will receive funding once the DOE approves their plans. Programs will be available until the funds are used entirely or September 30, 2031, whichever comes first.
A Quick Start Program lets states and territories who plan to launch their home energy rebate program in 2023 apply for up to 25% of their funding allocation. These applications will be prioritized for approvals by the DOE and are intended for states and territories that plan to use existing programs in the area to rapidly launch the new IRA rebates.
State programs can choose between several verification options to confirm what level of rebates a household is eligible for based on income. Traditional income documentation, such as a Form 1040, is one option.
The DOE’s guidance strongly encourages states to collaborate with utilities and their energy efficiency programs, but it does not specifically require it. Existing utility program infrastructure, such as branding and outreach, qualified contractor networks, and rebate delivery should be strongly considered when developing an application. This is especially important for states and territories who want to launch in 2023 with a quick start program.
