Home Efficiency Rebates (HOMES) Program
The Home Efficiency Rebates (HOMES) Program (Inflation Reduction Act Section 50121) is focused on whole-house energy saving retrofits that achieve a defined threshold of energy savings using a modeled or measured quantification approach depending on the option(s) states select.
Products covered and maximum rebates:
Per DOE guidance, retrofits must address at least one major upgrade related to heating and cooling, envelope, and/or water heating end uses. And heating, cooling, and water heating products must meet ENERGY STAR product criteria in effect on the date of installation (Source: DOE). Requiring ENERGY STAR certified products for other upgrades may also be worthwhile as this helps ensure that aging appliances are not simply replaced with minimum efficiency equipment. DOE guidance also encourages, but does not require that entities eligible to carry out projects on behalf of low-income households (households with income less than 80%of the area median) apply the rebate as a discount at point of sale. There is a requirement that a $200 incentive be provided per dwelling unit to contractors/aggregators for verified completion of upgrades in state-defined disadvantaged communities (Source: DOE).
| Applicability | Required Savings Threshold by Quantification Approach | Single-Family Household (Maximum Rebate Amounts) | Multifamily Building (Maximum Rebate Amounts) | Low Income Household (Single-family and Multifamily) (Maximum Rebate Amounts) |
|---|---|---|---|---|
| Homeowners and aggregators carrying out whole-house energy saving retrofits | ≥ 20 to < 35% Modeled Energy System Savings | Lesser of $2,000 or 50% of project costs | $2,000 per dwelling unit, up to $200,000 per building | Lesser of $4,000 or 80% of project cost |
| Single or multifamily homes | ≥ 35% Modeled Energy System Savings | Lesser of $4,000 or 50% of project costs | $4,000 per dwelling unit, up to $400,000 per building | Lesser of $8,000 or 80% of project cost |
| All income levels, though rebates increase significantly for households with income less than 80% of the area median | ≥ 15% Measured Energy Savings (home or portfolio of homes) | Payment rate per kWh or kWh equivalent saved = $2,000 for a 20% reduction of energy use for the avg. housing unit in the state, or 50% of the project cost | Payment rate per kWh or kWh equivalent saved = $2,000 for a 20% reduction of energy use for the avg. housing unit in the state, or 50% of the project cost | Payment rate per kWh or kWh equivalent saved = $4,000 for a 20% reduction of energy use for the avg. housing unit in the state, or 80% of the project cost |