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Home Energy Rebate Programs

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Home Energy Rebate Programs

On August 16, 2022, the federal Inflation Reduction Act (IRA) was signed into law. The IRA includes $8.8 billion in funding for consumer home energy rebate programs which will be administered by individual states. South Carolina expects to receive over $137 million of these funds, which will be split into two programs: Home Energy Performance Based, Whole House Rebates (HOME rebates) and High Efficiency Electric Home rebates.

 

Funding is anticipated to be made available to states in late 2023. These rebates are not currently available. More information on these programs is available on the US Department of Energy’s website.

 

 

HOME Rebates

South Carolina expects to receive over $68 million in funding for the HOME rebates program. This program will provide rebates for energy efficiency retrofits ranging from $2,000 - $4,000 for individual households and up to $400,000 for multifamily buildings. Rebate amounts will depend on the amount of energy savings achieved by the retrofits, and maximum rebate amounts will double for retrofits of low- and moderate-income homes.

 

High Efficiency Electric Home Rebates

South Carolina also expects to receive over $68 million in funding for the High Efficiency Electric Home rebates program. This program will provide rebates on a percentage of the cost for an efficiency project based on the household’s income. The program will include a $14,000 rebate cap per household with additional caps on individual equipment types.

FAQ

When will these rebates become available?

On January 18, 2023, the US Department of Energy (DOE) released a Request for Information (RFI) to solicit input which will be used to create program guidance and needed tools for implementation of the home energy rebate programs. The RFI was available on DOE’s Energy Efficiency & Renewable Funding Opportunity Exchange and responses were due by March 3, 2023. DOE is continuing to conduct stakeholder outreach as they work on developing program guidance.

On July 27, DOE released the home energy rebate program requirements and application instructions for states. The SC Energy Office is now in the process of reviewing the requirements and instructions so that we may begin preparing our application to receive South Carolina's allocated funds. Funding is anticipated to be made available to states in late 2023, however states will then need to implement and rollout their programs before consumers may apply for rebates. We anticipate rebates will become available to consumers in 2024.

While these rebates are not yet available, consumers may be eligible for other federal programs including tax credits and the Weatherization Assistance Program, as well as other state, local, and utility programs.

What equipment types will rebates be available for?

Rebates may apply to the installation of the following technologies and measures:

  • Electric heat pump clothes dryers
  • Electric heat pumps for space heating and cooling
  • Electric heat pump water heaters
  • Electric panel and wiring upgrades
  • Electric stoves, cooktops, ranges, and ovens
  • Air sealing
  • Duct sealing
  • Insulation
  • Materials to improve ventilation
  • Potentially other energy-saving technologies

What types of buildings may qualify for rebates?

Rebates may apply to the following types of buildings:

  • Single-family homes
  • Multi-family residential buildings
  • Newly constructed homes
  • Rental properties

How much in rebate funding am I eligible for?

Rebate amounts may be based on the energy savings of the implemented retrofit(s), the cost of the retrofit(s), the median income in your area, and your household’s income. More specifics will be provided as the programs are developed, but the following chart will provide a general overview:

Can I make a home upgrade now and still receive a rebate when funding is made available?

Currently, it is unclear if HOME rebates will be able to be applied retroactively. As states have not yet established their programs, it will be difficult to offer rebates for projects completed before the programs have been put in place and the requirements are fully defined.

High Efficiency Electric Home rebates are not authorized to be offered retroactively.

Where can I get more information?

DOE has setup the Home Energy Rebate Programs State and Local Solution Center to provide information on the IRA-funded rebate programs. As the programs are developed, consumers can expect to see more information shared there.

Resources

  • Inflation Reduction Act
  • Inflation Reduction Act Rebate Information & FAQ
  • Federal Income Tax Credits and Incentives for Energy Efficiency
  • Weatherization Assistance Program
  • US Department of Energy Home Energy Rebate Programs State and Local Solution Center

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Columbia, SC 29201

803-737-0877

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