On Aug. 16, 2022, President Joseph R. Biden signed the landmark Inflation Reduction Act, which provides nearly $400 billion to support clean energy and address climate change, including $8.8 billion for the Home Energy Rebates. These rebates — which include the Home Efficiency Rebates and Home Electrification and Appliance Rebates — will put money directly back in the hands of American households. The rebates can help you save money on select home improvement projects that can lower your energy bills. DOE estimates these rebates will save households up to $1 billion annually on energy bills and support over 50,000 U.S. jobs.

The IRA Home Energy Rebates provide a once-in-a-generation opportunity to deliver innovative efficiency and electrification programs to households across the United States. The overarching goal of the Home Energy Rebate programs is to accelerate the transition to more affordable, efficient, resilient, and low carbon homes through the following long-term outcomes:

• Well-established exemplary and innovative efficiency and electrification programs. The program will achieve this through increased awareness and effective marketing to homeowners, adoption of innovative tools that streamline program experience, an expanded and sustained workforce that meets consumer demand, and effective integration of existing programs.
• Lower energy burden for low-income households and disadvantaged communities. State programs will evolve and expand to meet the needs of all homes across the United States, with significant use of rebates by low-income households and disadvantaged communities.
• Proven value streams and roles for sustained investments to continue market transformation. A successful program will prove the business case and catalyze a sustained increase in supplier participation and consumer demand for energy efficient and efficient electrification upgrades, including ongoing access to upgrades for low-income households and disadvantaged communities, while showcasing how a combination of Federal, utility, private, and public funds provide value to households and local communities during the transition to a clean energy economy.
• Reduced pollution from buildings and support for the clean energy economy. The program will reduce pollution from building energy use, including harmful indoor air pollution, and support the clean energy economy through energy efficiency.

States are encouraged to develop their own additional goals, outcomes, and objectives for their programs based on each State’s priorities, climate zone, utility costs, etc.