Under the Inflation Reduction Act of 2022, two initiatives were established to provide rebates for projects focused on home energy efficiency retrofits and home electrification, including appliance updates. These rebate programs are to be managed by state energy offices under the guidance and oversight of the U.S. Department of Energy (DOE). Participation by states in these rebate programs is optional.
Some states have either applied for or received preliminary funding to initiate their rebate programs. It is anticipated that rebates will start becoming available in certain states in 2024, although some states may experience delays until 2025.
DOE Home Energy Rebates Limits
The table below outlines the maximum rebate amounts set by the DOE and the criteria used to determine eligibility for these rebates. Technologies installed in homes can qualify for rebates based on their projected energy savings or if they are listed as qualified technologies under the home electrification projects. However, a single household cannot receive rebates for both reasons simultaneously.
| Type of home energy project | Maximum allowed rebate amount per household below 80% area median income (AMI) |
Maximum allowed rebate amount per household above 80% area median income (AMI) |
| Home efficiency project with at least 20% predicted energy savings |
80% of project costs, up to $4,000* |
50% of project costs, up to $2,000 (maximum of $200,000 for a multifamily building) |
| Home efficiency project with at least 35% predicted energy savings |
80% of project costs, up to $8,000* |
50% of project costs, up to $4,000 (maximum of $400,000 for a multifamily building) |
| Home electrification project qualified technologies (only households with an income below 150% AMI are eligible) |
100% of project costs, up to technology cost maximums**, up to $14,000 |
50% of project costs, up to technology cost maximums**, up to $14,000 (households with incomes above 150% AMI are not eligible) |
*States may increase the maximum amount of home efficiency rebates available for low-income
households — including up to 100% of project costs — upon approval from the DOE.
**Maximum rebated costs for home electrification project qualified technologies:
- Energy Star electric heat pump water heater — up to $1,750
- Energy Star electric heat pump for space heating and cooling — up to $8,000
- Energy Star electric heat pump clothes dryer — up to $840
- Energy Star electric stove, cooktop, range, or oven — up to $840
- Electric load service center — up to $4,000
- Electric wiring — up to $2,500
- Insulation, air sealing, and ventilation — up to $1,600
