This program will be designed and implemented in accordance with the requirements established by the United States Department of Energy (DOE). The DOE released guidelines to states on July 27, 2023, to apply for DOE funding. The CEC will hold public workshops soon to inform program development and the application to DOE for funding. To receive additional information on program development, please subscribe to the DOE Office of State and Community Energy Programs subscription list for home energy rebate programs and the CEC subscription list for Federal IRA Residential Incentives in the subscription box on this web page.
The federal Inflation Reduction Act includes two residential energy rebate programs and funding for contractor training grants related to these programs. More than $582 million is anticipated to be allocated to California for the whole-house Homeowner Managing Energy Savings (HOMES) rebate program and the point-of-sale High-Efficiency Electric Home Rebate (HEEHRA) program.
The CEC will hold workshops to seek input on program development in late 2023. The CEC expects rebates will become available in 2024. The CEC has established a docket to receive written input.
- The HOMES program will provide performance-based rebates for whole-house energy saving retrofits. The amount of the rebate varies by the amount of energy savings.
- The HEEHRA program will provide point-of-sale rebates for qualified electrification projects in LMI households. Example projects include the purchase and installation of electric heat pumps and electric stoves certified by the federal ENERGY STAR program.
Contractor Training for Inflation Reduction Act Residential Energy Rebate Programs
The California Energy Commission (CEC) plans to apply to the U.S. Department of Energy for funding to provide contractor training for residential energy rebate programs funded by the federal Inflation Reduction Act (IRA). The CEC is seeking input to inform preparation of its application to the U.S. Department of Energy (DOE) for IRA Contractor Training Program funding. CEC staff has developed a list of questions in the link above, but other feedback and topics are welcome.
Comments and any supporting documentation are due by September 25, 2023.
- About $292 million to be allocated for California.
- Performance-based rebates for whole-house energy efficiency upgrades for single-family homes and multifamily buildings.
- Up to $8,000 ($400,000 for a multifamily building) depending on energy savings and household income.
- Rebate level is higher for eligible LMI households.
- Eligible applicants: homeowners or aggregators.
- About $290 million to be allocated for California.
- Point-of-sale rebates for purchase and installation of qualified Energy Star appliances.
- Appliances that may qualify for rebates are:
- Electric heat pump water heater.
- Electric heat pump for space heating and cooling.
- Electric heat pump clothes dryer.
- Electric stove, cooktop, range, or oven.
- Rebates may be available for the following types of building materials: insulation, air sealing, electric panel upgrades, and electric wiring.
- Rebates may be available for ENERGY STAR range hoods installed to send exhaust air outside of the dwelling.
- Up to $14,000.
- Limited to households below 150% of area median income.
- Eligible applicants:
- Low- or moderate-income (LMI) households.
- Owners of eligible LMI multifamily buildings.
- Governmental, commercial, or nonprofit entity carrying out a project for an eligible household or an owner of an eligible multifamily building.
- Funding: About $10 million for California.
- Training and education to contractors involved in the installation of home energy efficiency and electrification improvements to support the HOMES and HEEHRA program mission.
- Funds may be used to
- Reduce the cost of training contractor employees.
- Provide testing and certification of contractors involved in the installation of home energy efficiency and electrification improvements.
- Partner with nonprofit organizations to develop and implement applicable contractor training.
- July 2023: DOE guidance available to States to apply for funding for IRA residential energy rebate programs and contractor training
- 2023: CEC workshops and program development
- 2024: Programs launch and rebates available to the public