Kayah Swanson, kayah.swanson@sierraclub.org
SACRAMENTO, CA - Today, the Department of Energy (DOE) released guidance for states to apply for the new Home Energy Rebates Program. The program, created by the Inflation Reduction Act (IRA), will distribute a total of $8.5 billion dollars in formula grants for states to deliver home electrification and efficiency rebates to help consumers better afford upgrades that will lower utility bills, improve home comfort and resilience, and reduce indoor and outdoor air pollution. California is eligible to receive $582,203,620 million to distribute to consumers.
Each state will develop its own rebates program based on the guidance laid out by DOE. Once the state program is developed, DOE will approve its rollout. Applications will be accepted on a rolling basis through January 2025, with consumer rebates expected to be available to consumers in many states by late 2023 or early 2024.
As California begins to use this federal guidance, Sierra Club California is urging officials to coordinate state and federal funding for weatherization, electrification, and home health and safety repairs into one streamlined whole-home retrofit program with this IRA funding to maximize benefits and reduce red tape. Officials should also ensure robust stakeholder feedback, find ways to include and protect renters, and put a primary focus on delivering rebates to low-income households who are disproportionately burdened by climate change. DOE guidance requests states allocate at least half of program funds to reach low-income households and prepare Community Benefits Plans to assure funds are invested in good jobs and real economic opportunities.
The Home Energy Rebates Program will improve the liveability and energy affordability of homes across California. DOE estimates consumers will save up to $1 billion each year in energy costs.
It will also help grow the job market and boost manufacturing for energy efficient appliances, “supporting an estimated 50,000 U.S. jobs in residential construction, manufacturing, and other sectors,” according to DOE. A companion program, called the Contractor Training Program, provides states with funds to “train, test, and certify residential energy efficiency and electrification contractors.”
In response, Sierra Club Senior Energy Campaigns Representative Melissa Yu released the following statement:
“A significant amount of California’s emissions come from our homes and buildings that use dangerous, unhealthy gas for energy. This rebates program is a major opportunity for California to make our indoor spaces cleaner, cooler, and safer for our communities. The program can support households to make life-saving upgrades to things like heat pumps, which provide low-cost cooling as climate change increasingly causes unprecedented drought and heat waves. California must act swiftly in adapting this guidance from DOE and design an innovative rebates program that is not reserved for only those with the most resources. All residents, especially low-income households and renters, should be able to access support in making the transition to clean, renewable energy. We expect these funds to offset the cost differential between electric and gas appliances and make them affordable to low-income households."
About the Sierra Club
The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.