Shannon Van Hoesen, shannon.vanhoesen@sierraclub.org
Washington, D.C. - Today, the Department of Energy (DOE) released guidance for states to apply for new Home Energy Rebate Programs. The programs, created by the Inflation Reduction Act, 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.
Each state will develop its own rebates program based on the guidance laid out by DOE, for which there is administrative support available. Once a 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 states begin to use this federal guidance to develop their programs, Sierra Club 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 to maximize benefits and reduce red tape. States 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. 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 the country. 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 Building Electrification Campaign Director Jessica Tritsch released the following statement:
“The Home Energy Rebates Program is an unprecedented chance to help folks make their homes safer and healthier, while also lowering their energy bills and reducing strain on the power grid through improved energy efficiency. The guidance released by DOE should empower states to focus their programs on low-income homeowners and renters who are often left behind by these types of opportunities. As we see an increase in deadly heat waves and other climate disasters, now is the time to improve the resilience of every home and reduce emissions from our buildings. States must now spring into action. ”
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.