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In the coming weeks, the U.S. Department of Energy (DOE) will work with Wisconsin and other states to help them get the funding they need to launch their Home Energy Rebate programs.
The Inflation Reduction Act (IRA) provided $8.8 billion for the Home Energy Rebates. Under the IRA, DOE awards funding to state, territorial and Tribal governments to set up rebate programs.
DOE expects the first state rebate programs to launch this summer, with a greater number of launches this fall and winter. These programs will provide consumers with point-of-sale rebates on energy-efficient electric appliances and other home upgrades. In addition to reducing energy demand, DOE expects the rebates to support 50,000 American jobs and save households $1 billion annually on their energy bills.
This unprecedented program, which can provide a single household with up to $14,000 in rebates, is coming closer to hitting the streets. In January, DOE announced that four states — California, Hawaii, New Mexico and New York — were the first to apply for their program funding. DOE is reviewing those applications and working with these states to issue their funds.
Now, DOE will engage with Wisconsin and other states, as needed, to help develop their funding applications. Wisconsin will apply to DOE for more than $149 million in funding for consumer rebates and program administration.
Like some other states, including New York and California, Wisconsin has an existing statewide program, Focus on Energy, that delivers Home Energy Rebates to its residents. This should shorten Wisconsin’s runway to get rebates in consumers’ hands.
“We are well positioned to roll out the Home Energy Rebate programs in Wisconsin. The state’s existing administrative infrastructure and our close network of partners are enabling us to move forward efficiently while incorporating detailed public input,” said Public Service Commission of Wisconsin Chairperson Summer Strand. “I am excited about our partnership with the DOE as it means Wisconsin will remain a leading example for other states to follow as we prepare to implement these programs and build a clean energy economy.”
In addition to providing support to states, territories and Tribes as requested, DOE has also provided comprehensive documentation for them to consult when applying for funding and setting up programs, including sample applications that ease the application process.
Once DOE approves a state’s application and funding, the state then needs to take the final steps to set up a program that can issue rebates to consumers. To provide added support, DOE has also launched exhaustive guidance on program design and implementation.
Many other states and territories have made progress as well. DOE has given them the opportunity to apply for 2.5 percent of their funding, up to a maximum of $5 million, to get an early start on setting up their programs. To date, 38 states and territories have applied for this funding, and DOE has approved applications and awarded funding to 25 of those states.
Congress also set aside $225 million for Tribes to implement their own Home Efficiency and Appliance Rebates, one of the two Home Energy Rebate programs. To date, DOE has received seven letters from Tribes declaring their intent to launch rebate programs and expects many more in the coming months.
DOE recognizes that setting up new consumer rebate programs is no small feat. DOE is committed to providing states, territories and Tribes with the maximum level of support to help them deliver savings to the American public as soon as possible.
Track the states’ and territories’ progress.
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