A Spring 2024 Update: Has Your State Applied for IRA Home Energy Rebate Funds?

It’s been more than a year and a half since the Inflation Reduction Act was passed, and we’re finally starting to get some answers to when the groundbreaking Home Energy Rebate programs will be available—at least in some states.

Less than two weeks ago, the DOE approved New York’s Home Energy Rebate program application* for Home Electrification and Appliance Rebates. New York is the first state to receive funding under either Home Energy Rebate program.

*Somewhat confusingly, New York Governor Kathy Hochul’s press release calls it a “partial-scope application” for only $39.6 million in initial funding specifically for its low-income EmPower+ program and that “NYSERDA is currently working towards developing and submitting the full HEAR application.” The DOE’s press release, however, says the state was awarded the full $158 million. We’re inclined to believe the former, but in any case, progress is progress!

Given this milestone, here’s the rest of what we know about where states currently stand:

States That Have Applied for IRA Funding

First, here’s a refresher on each rebate program:

• Home Electrification & Appliance Rebate Program - Provides households with rebates up to $14,000 in rebates for installing heat pumps, heat pump water heaters, electric appliances, and more. 

• Home Efficiency Rebate Program - Provides households with rebates up to $8,000 for reducing energy usage by at least 20% through various upgrades like insulation and air sealing.

Both rebate programs offer higher savings for low to moderate income households and individual states can designate a portion, or all, of their IRA funding exclusively for this demographic. 

Here are the states that have, as of May 1, 2024, applied for funding and which rebate program(s) they applied for:  

Will Any States Not Apply for IRA Funding?

When the Inflation Reduction Act was passed into law, there was talk that some states might refuse to participate. Florida Governor Ron DeSantis vetoed Home Energy Rebate administrative funding last year, but there are indications he may have changed his mind. This is a good reminder for contractors to sit tight and wait, despite what they may read in the news.

As of right now, some states have applied for administrative funding, some have applied for one or both of the rebate programs, and some haven't applied for anything. Below is the list of states that haven't applied for anything as of May 1, 2024. Many states that have publicly announced their intention to apply are included on the list, which doesn't exactly line up along political lines. 

We don’t think there’s much reason for concern if your state hasn’t applied for funding yet. States have until August 16, 2024 to notify the DOE of their intention to apply for rebate funds and until January 31, 2025 to complete their applications.

• Montana

• Idaho

• Wyoming

• South Dakota

• Oklahoma

• Texas

• Arkansas

• Missouri

• Iowa

• Illinois

• Tennessee

• Mississippi

• American Samoa (Territory)

• New Jersey

• Vermont

• Massachusetts

• Maine

What’s Next for the IRA?

Every state that has applied for Home Energy Rebate funding has applied for the Home Electrification & Appliances program, and the majority have applied for this program exclusively. We don’t know why so many states have decided to focus on this program so much early on, but it could be due to the complicated measured vs modeled component for the Home Efficiency Rebate program. We don’t have answers to this yet, but we may find out more as more states submit their applications.

Hawaii, New Mexico, and California all applied for IRA Home Energy Rebate funding shortly after New York, so we predict their applications will be processed next. Since the remaining states have until August to declare their intention to apply, we also imagine things will start to heat up with applications this summer, especially in reputed energy efficient states like Massachusetts, Vermont, and Maine. 

When Will Home Energy Rebates Reach Consumers?

This, of course, is still the big question, and can likely only be answered once state applications are approved. DOE announced that “New York expects to launch its program in late spring or summer, initially to low-income New York State homeowners, and later expanding to reach all eligible residents.”

In the meantime, here are some of our recent blogs on IRA-related topics:

• What’s Different About Marketing IRA Rebates to Low and Moderate Income Households?

• Are you Using the Right Rebate and Tax Credit Language on Your Website?

• 10 Key Contractor Takeaways from DOE’s New IRA Rebate Guidelines

Want to market the Inflation Reduction Act and other incentives to benefit your better building business? Call 207-417-6338 or contact us online to schedule a free discovery call with our team.