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Consumers can potentially receive up to ,000 or more in federal rebates for making energy-efficient upgrades to their homes. These rebates are part of the Inflation Reduction Act, which allocated 9 billion to fight climate change, making it the largest climate legislation in US history. President Joe Biden signed the act into law in August 2022.

There are two rebate programs available: the Home Efficiency Rebates Program and the Home Electrification and Appliance Rebates Program. The Home Efficiency Rebates Program offers up to ,000, while the Home Electrification and Appliance Rebates Program offers up to ,000.

These rebates cover the partial or full cost of home efficiency projects such as installing insulation, electric heat pumps, or purchasing electric Energy Star appliances. They are designed to be delivered at the point of sale by retailers or contractors. The value of the rebate depends on factors like project expense, household income, and energy savings.

States need to apply for the federal funds to administer the rebate programs. Florida has already indicated that it will not offer the rebates after a recent veto by Governor Ron DeSantis. The timeline for the implementation of the rebate programs varies by state, but most are expected to begin issuing rebates in 2024.

It is unclear if more states will choose not to apply for the funds. The Inflation Reduction Act allows states to use a portion of their grant to administer the rebate programs. However, Governor DeSantis vetoed Florida’s authority to spend the administrative funding, resulting in the state not applying for the federal rebates. States have until August 16, 2024, to notify the US Energy Department of their intent to participate, and applications are due by January 31, 2025.

The Home Energy Rebates can potentially be combined with tax breaks and other incentives. While rules against double-dipping may prevent consumers from claiming funds from both rebate programs, they may be able to pair the rebates with clean-energy tax credits. Low-income households can stack the rebates with existing programs like the federal Weatherization Assistance Program, potentially receiving over ,000 in support from the federal government. Middle-income households can receive up to about ,000, and higher-income households can receive over ,200.

Consumers should also explore additional efficiency incentives offered by local utilities. The income limits for the rebates vary by region and are determined by the area’s median income.

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