New York First to Win DOE Funding for Efficiency Rebates
(Courtesy of U.S. Department of Energy)
WASHINGTON, D.C. — The state of New York was awarded $158 million in initial funding Thursday for the residential energy-efficiency rebates included in the federal Inflation Reduction Act (IRA). New York became the first state to have its funding application approved by the U.S. Department of Energy (DOE).
The money, through the IRA’s Home Electrification and Appliance Rebates program, is for direct-to-consumer rebates for the purchase of qualifying high-efficiency HVAC equipment, including up to $8,000 for a heat pump. A DOE spokeswoman said New York should have the rebates available to consumers by this spring or summer.
DOE also announced that 11 other states — Arizona, California, Colorado, Georgia, Hawaii, Indiana, Minnesota, New Hampshire, New Mexico, Oregon, and Washington — have submitted funding applications for the IRA’s energy-efficiency rebates. Collectively, the programs provide $8.8 billion for states, territories, and American Indian communities to lower energy costs and increase efficiency in homes by making it cheaper to install more efficient heating and cooling appliances as well as energy-saving measures such as better insulation.
DOE estimates the program will save consumers up to $1 billion annually in energy costs and support an estimated 50,000 U.S. jobs in residential construction, manufacturing, and other sectors.
“Save energy and save money — that’s exactly what the Home Energy Rebate programs are designed to do,” said Secretary of Energy Jennifer M. Granholm in a press release. “I am excited to announce that states across the country are getting closer to putting money in the hands of consumers to upgrade their homes with new, energy-efficient appliances and clean-energy tools that will cut monthly utility costs.”
“New York is setting the pace in the transition to modern, affordable, and efficient homes. With this Inflation Reduction Act funding, we continue the transition to an affordable clean-energy future that benefits all New Yorkers,” said Gov. Kathy Hochul.
The IRA’s Home Electrification and Appliance Rebates program offers $4.275 billion in grants to states and territories to reduce the upfront cost of efficient electric technologies, such as heat pumps and heat-pump water heaters, in single-family and multi-family homes. The program also provides $225 million in grants to American Indian communities.
A second rebate program in the IRA, the Home Efficiency Rebates Program, offers $4.3 billion in grants to state and territorial energy offices to reduce the upfront cost of energy- saving upgrades in single-family and multifamily homes. The value of an eligible home’s rebate depends on household income and the predicted energy savings attributable to the project.
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