DOE Chief: Efficiency Rebate Money on the Way
The Home Energy Rebates program was under review by the Trump administration
Federal money to encourage residential energy efficiency measures — including the installation of heat pumps — may start flowing again soon after a long pause.
U.S. Energy Secretary Chris Wright told the House Appropriations Committee April 15 that Home Energy Rebate (HER) dollars would be released in a “few weeks.” HER was among the Department of Energy (DOE) programs being reviewed to ensure compliance with the Trump administration’s agenda, a statement from the DOE said earlier this year.
HER is made up of the High-Efficiency Electric Home Rebates (HEEHR) and the Home Efficiency Rebates (HOMES) programs. HEEHR (also called Home Electrification and Appliance Rebates, or HEAR) offers low- and middle-income households point-of-sale rebates for the installation of qualified equipment, including heat pumps and heat-pump clothes dryers, and specific energy-saving measures, such as additional insulation. The rebate for a qualified heat pump can be as high as $8,000.
HOMES uses a whole-home, performance-based approach, offering rebates for measures such as high-efficiency HVAC and new insulation. Under HOMES, rebates are based on the amount of energy saved, which is either measured or modeled through an approved process. A minimum savings of 15% is required for rebate eligibility if savings are measured, and at least 20% is required if savings are modeled.
“We applaud Secretary Wright for pledging to release the pivotal Home Energy Rebates to help Americans upgrade their homes and save on their energy bills,” said Kara Saul-Rinaldi, chief policy officer at the Building Performance Association, in a press release. “The HOMES and HEEHR rebates represent critically needed funds to help homeowners invest in insulation and high-efficiency systems. With energy prices rising faster than inflation and the peak cooling season looming, these resources are needed now more than ever.”
The rebate programs are managed individually by the states, territories, and the District of Columbia (South Dakota and Idaho are not participating), but so far, only 12 states and the District have launched HEAR programs, and only five states and the District have launched HOMES programs. Funding for HEEHR and HOMES together totals about $8.8 billion, only part of which has been released.
Wright, who appeared before the appropriations committee to talk about the DOE budget request for 2027, spoke about HER in an exchange with Rep. Rosa DeLauro, D-Conn. He said the HER monies would be released in the “near future.”
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“What does that mean, in the near future?” DeLauro said, according to Saul-Rinaldi. “Is it three weeks, next month, six months? What’s the near future?”
“Probably more in the few weeks department,” Wright said.
Wright’s statement came nearly two months after the House voted for the Homeowner Energy Freedom Act, which calls for the repeal of the HEEHR program.
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