Home Efficiency Rebate
Rebates that discount the price of energy-saving home upgrades.
What qualifies
This is a performance-based rebate for home improvements that result in a specified amount of energy savings. The value of the rebate varies by the amount of energy savings.
Incentive value
Your state energy office can pick one or both of the credit value structures in the chart below, either modeled or measured, to set the credit value.
| Home Efficiency Rebate Amounts | ||||
|---|---|---|---|---|
| Single Family | Low-Income Single Family |
Multifamily | Low-Income Multifamily |
|
| Modeled, |
Lesser of $2,000 or 50% of project cost | Lesser of $4,000 or 80% of project cost | $2,000/dwelling unit; building maximum of $200,000 | Lesser of $4,000/dwelling unit or 80% of project cost |
| Modeled, 35%+ building-wide savings | Lesser of $4,000 or 50% of project cost | Lesser of $8,000 or 80% of project cost | $4,000/dwelling unit; building maximum of $400,000 | Lesser of $8,000/dwelling unit or 80% of project cost |
| Measured, |
Savings rate multiplied by kWh saved or 50% of the project cost |
Low-income savings rate multiplied by kWh saved or 80% of the project cost | Savings rate multiplied by kWh saved or 50% of the project cost | Low-income savings rate multiplied by kWh saved or 80% of the project cost |
i. Low-Income is defined in legislative text as a household at 80% or below area median income (AMI).
ii. Multifamily low-income is defined as a multifamily building where 50%+ of the dwelling units are occupied by households at 80% or below AMI.
iii. Modeled performance requires the use of a BPI-2400 compliant energy modeling software to generate a base and proposed retrofit energy model that is calibrated to historical energy usage.
iv. Measured performance rebates require the use of an approved open-source measurement and verification (M&V) software, such as OpenEE Meter. The measured performance approach does not technically require an energy model since the actual consumption pre- and post-retrofit is used to calculate rebates.
v. Savings rate calculation: $2,000/(average home or multifamily building energy usage in kWh * 0.2); Low-income savings rate: $4,000/(average home or multifamily building energy usage in kWh * 0.2).
There is also a $200 per unit credit for contractors who complete a home efficiency rebate in state-defined disadvantaged communities.
This can be used with other federal incentives depending on the project to lower costs even more. See if your project also qualifies for the Residential Clean Energy Credit 25D or Energy Efficient Home Improvement Credit 25C.
If the modeled approach is used, this rebate can be stacked with the Home Electrification and Appliance Rebate for the same household retrofit project but can never be stacked for the same efficiency or electrification measure. If your state uses a measured approach, the credit cannot be stacked with the Home Electrification and Appliance Rebate.
Who is eligible
Homeowners, renters, and owners of renter-occupied single and multi-family buildings.
When the credit is available
The credit is implemented by your respective State government, and they are aiming to start issuing rebates in 2024 through September 30, 2031.
How to claim the credit
Instructions will be provided by your state energy office.