What are Major Programs and Sources of Funding?

Recent legislation including the Bipartisan Infrastructure Law and the Inflation Reduction Act have increased the funding available to existing programs as well as provided funds for new programs.  The following are the largest and most relevant programs for assisting low-to moderate-income households with energy efficiency upgrades.

  • Home Electrification and Appliance Rebates (HEAR) Program. The Inflation Reduction Act made available new grant funding to states to offer rebates for efficient electric appliances to benefit low- and moderate-income households with AMI of 150% or less. See the Home Energy Rebates Categorical Eligibility List for details. While not yet available, these rebates will assist households in realizing many of the impactful home improvements in the ENERGY STAR Home Upgrade including clean heating and cooling, super-efficient water heating, a well-insulated and sealed attic, and electric readiness. State Energy Offices will be the best source of information about when rebate programs will be up and running. 
  • Weatherization Assistance Program (WAP). The U.S. Department of Energy's (DOE) Weatherization Assistance Program reduces energy costs for low-income households by increasing the energy efficiency of their homes, while ensuring health and safety are prioritized. DOE awards the grants to the states, Tribes, and territories who then work through community action agencies, other nonprofits, and local governments to perform weatherization services for low-income families. Through the Bi-Partisan Infrastructure Act, this program received $3.5 Billion, which doubled, and in some cases tripled, states’ previous WAP budgets.

    Depending on state, your local WAP program may offer the following services:
    • Health and safety assessments of systems and measures
    • Building shell improvements such as insulation and air sealing, windows, and doors
    • Repair/replacement of heating, ventilation, and air conditioning systems
    • Installation of efficient lighting and appliances
       
  • Low Income Energy Assistance Program (LIHEAP). The US Department of Health and Human Services makes funds available to states, Tribal organizations, and territories to assist low- income households in primarily meeting immediate home energy needs. Grant recipients are required to prioritize households with high energy burdens (the percentage of income that goes to heating and cooling bills), and/or those having elderly, disabled, or young children as members of the household.

    Depending on state, your local LIHEAP office may offer:
    • Heating and cooling bill assistance
    • Repair or replacement of heating and cooling units
    • Emergency assistances during utility shutoffs
    • Weatherization and pre-weatherization assistance