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Home Energy Rebate Programs
Home Energy Rebate Programs
The Inflation Reduction Act (IRA) authorized the U.S. Department of Energy (DOE) to carry out the Home Energy Rebate Programs to help households save money on energy bills, improve energy efficiency, and reduce indoor and outdoor air pollution. The Home Energy Rebate Programs consists of two programs: the Home Efficiency Rebates (IRA Section 50121) and the Home Electrification and Appliance Rebates (IRA Section 50122).
The Home Efficiency Rebates will provide funding to lower the upfront cost of whole-home energy efficiency upgrades in single-family and multi-family homes aiding retrofitting and electrification efforts. The Home Electrification and Appliance Rebates will help finance the upfront cost of efficient electric technologies in single-family and multi-family homes.
Collectively, the Home Energy Rebate Programs have $8.8 billion in funds for the benefit of U.S. households, to be distributed to households by State Energy Offices and Indian Tribes. Michigan’s Home Energy Rebate Programs will be administered by EGLE’s Energy Services Unit.
Home Efficiency Rebates (50121)
- Single-family and multifamily households are eligible for rebates for energy efficiency upgrades that are modeled to save at least 20% of the home’s energy use or measured to save at least 15% of the home’s energy use.
- Greater energy savings and households with incomes at or below 80% of area median income (AMI) will be eligible for rebates covering a higher percentage of total project costs, with the maximum rebate capped at $8,000.
Home Electrification and Appliance Rebates (50122)
- Single-family and multifamily households are eligible for rebates for high efficiency home appliances and equipment.
- Qualified products and maximum rebates per product are listed below:
|Qualified Product||Maximum Rebate|
|Heat Pump Water Heater||$1,750|
|Heat Pump for Space Heating or Cooling||$8,000|
|Electric Stove, Cooktop, Range, Oven, or Heat Pump Clothes Dryer||$840|
|Building Materials Electric Load Service Center||$4,000|
|Insulation, Air Sealing, and Ventilation||$1,600|
- Households with incomes at or below 80% AMI will be eligible for rebates covering a higher percentage of total project costs, with the maximum rebate capped at $14,000.
NOTE: A single address cannot receive a rebate from both 50121 and 50122 for the same measure.
Michigan received just over $211.1 million for the Home Energy Rebate Programs; of this, $105.9 million is allocated for the Home Efficiency Rebates and $105.2 million is allocated for the Home Electrification and Appliance Rebates.
Applications opened for program administrators (e.g., States and Indian Tribes) on July 27, 2023 and close January 31, 2025.
As of August 2023, EGLE is waiting for approval from DOE to use a small portion of the funds to hire a consultant to help with program planning. Below is an estimated timeline for the rollout of Michigan's Home Energy Rebate Programs.
NOTE - Every month DOE delays approval of EGLE's planning award, the subsequent actions in the timeline will also be pushed back.
|DOE awards EGLE planning funds||September 2023|
|EGLE opens a Request for Proposals to find a consultant that will assist with program planning||October 2023|
|EGLE reviews proposals and selects a consultant||December 2023|
|EGLE and consultant conducts research, stakeholder engagement, and develops program application||January 2024 - June 2024|
|EGLE submits program application to DOE||July 2024|
|DOE awards EGLE implementation funds||September 2024|
|EGLE opens program to households