President Joe Biden signed the Inflation Reduction Act (IRA) into law on August 16, 2022, with a goal of helping households save money on energy bills, improve energy efficiency, reduce greenhouse gas emissions, and improve indoor air quality. The Act also provides funding for contractor training. The United States Department of Energy (DOE) estimates the programs will save American households up to $1 billion on energy bills each year and support over 50,000 U.S. jobs.
The two programs are being designed and implemented in accordance with requirements established by the DOE. To receive funding allocations, states must first submit applications to the DOE with detailed plans on program design.
The DOE released updated program guidance to states on October 15, 2023. On January 12, 2024, the CEC submitted an application for the HEEHRA Program to receive funding and continue the process of setting up the state’s program. To read the application announcement, visit the DOE's website.
On December 21, 2023, the CEC issued a request for information and will hold public workshops to inform program development and the application to the DOE for HOMES Program 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 CEC will hold workshops to seek input on program development in 2024. Written comments can be submitted to docket # 23-DECARB-01. Californians are expected to be able to apply for funding this year.
The California Energy Commission (CEC) invites the public to provide comments on its approach to program design for the federal Inflation Reduction Act Home Efficiency Rebates (HOMES) Program and its application to U.S. Department of Energy (DOE) for $292 million in funds. To facilitate feedback and recommendations, staff has developed a list of questions in the Input Request section of this document. Individuals are invited to provide input on staff questions as well as program-related topics not posed.
Comments and supporting documentation are due by 5:00 p.m. on Friday, January 26th, 2024.
- $292 million allocation for California.
- Project funding or performance-based rebates for whole-home energy retrofits for single-family homes and multifamily buildings.
- Projects must achieve certain thresholds of energy savings.
- Enhanced rebate value for eligible low-income households.
- $290 million allocation for California.
- Up to $14,000 point-of-sale rebates for purchase and installation of qualified ENERGY STAR appliances.
- 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.
- Households below 150 percent of area median income may be eligible.
- Eligible applicants:
- Low or moderate-income (LMI) households below 150 percent of area median income.
- 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.
- $10 million allocation for California.
- Training and education to support contractors involved in the installation of electrification improvements to support HOMES, and HEEHRA as well as the Equitable Building Decarbonization Direct Install program.
- 2023: DOE guidance available to states to apply for funding for IRA residential energy rebate programs and contractor training.
- 2024: California applies to DOE for funding. CEC releases funding opportunity to applicants.