|
Home Energy Rebates Update |
|
Biden-Harris Administration Announces Michigan’s Launch of Federal Home Energy Rebate Programs Pilot to Help Lower Families’ Utility Bills |
|
Eligible Michigan Households Can Use the Federal Home Energy Rebate Programs to Save Energy, Save Money on Energy-Efficient Upgrades |
|
|
MICHIGAN — As part of President Biden’s Investing in America agenda, the U.S. Department of Energy (DOE) announced today that Michigan has launched a pilot of its federal Home Energy Rebate programs, supported by the Inflation Reduction Act. Michigan is launching pilot versions of the Home Efficiency Rebates (HOMES) and Home Electrification and Appliance Rebates (HEAR) programs — to lower energy bills by lowering costs for energy-efficiency improvements — starting in two regions of the state: the utility service areas of the Holland Board of Public Works and the Upper Peninsula Power Company (UPPCO).
Michigan’s launch is part of the Biden-Harris Administration’s nationwide initiative to provide $8.8 billion in Federal funding for states, territories, and Tribes to lower energy costs and increase efficiency in American homes by making it more affordable to install cost-saving measures such as heat pumps, electrical panels, and insulation, which helps save money on housing costs. These energy-saving measures will save American households up to $1 billion annually in energy costs and support an estimated 50,000 U.S. jobs in residential construction, manufacturing, and other sectors. These investments also advance the President’s Justice40 Initiative, which sets a goal that 40% of the overall benefits of certain federal climate, clean energy, affordable and sustainable housing, and other investments flow to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution.
“With winter approaching, we are thrilled that Michiganders can begin to take advantage of these rebate programs,” said Keishaa Austin, Principal Deputy Director, Department of Energy’s Office of State and Community Energy Programs. “By making home heating, insulation, weatherization, and so many other upgrades more affordable, not only will these programs help people stay warm, but they can help people save hundreds to thousands of dollars in the process.”
"The Michigan Home Energy Rebates program will lower energy costs and help families improve their homes and upgrade to more energy-efficient home appliances, helping them stay cool in the summer and warm in the winter," said Phil Roos, Director of the Michigan Department of Environment, Great Lakes, and Energy. “We applaud the Biden-Harris Administration and our hardworking congressional delegation for getting these dollars to Michiganders. These resources will catalyze action towards the goals of the MI Healthy Climate Plan, the state’s climate action roadmap, and continue to grow the state’s booming clean energy economy.”
Many Americans spend a large portion of their monthly income to heat, cool and power their homes. To advance the objectives of the rebate programs, DOE is requiring states and territories to allocate at least half of the rebates to low-income households, defined as those earning 80% or less of their area median income, which is expected to benefit many households in disadvantaged communities. States and territories must also submit Community Benefits Plans to ensure good jobs and other economic opportunities are available. To help keep consumers informed and equipped with resources, DOE recently released a Consumer Bill of Rights framework and is encouraging state, territorial and Tribal rebates programs to adopt it.
|
|
Michigan’s Home Energy Rebate Programs
Michigan’s rebate programs will be overseen by the Energy Services Unit within the Michigan Department of Environment, Great Lakes, and Energy. Michigan is launching its programs in phases.
Available now: Michigan’s rebate programs will begin as pilots in the utility service areas of the Holland Board of Public Works (city of Holland and surrounding townships) and the Upper Peninsula Power Company (UPPCO) (all or parts of Alger, Baraga, Delta, Houghton, Iron, Keweenaw, Marquette, Menominee, Ontonagon, and Schoolcraft counties).
Eligible consumers will have state-certified contractors guide them through their upgrades. These contractors will help consumers determine which of the two rebate programs is the best fit for their projects. In the pilot, the state will offer rebates for up to 50 homes. Michiganders who are deemed eligible for the program but not selected for the pilot can participate when the program launches statewide.
Under the HOMES program, which is typically used to install multiple upgrades that meaningfully reduce a household’s energy usage, Michiganders will need to achieve energy savings of at least 15% to receive a rebate. For single-family homes, HOMES rebates will range up to:
-
$20,000 for those making less than 80% of their area median income (AMI.
-
$4,000 for those making 80% or more of their AMI.
Michigan will also offer its HEAR program in the pilot regions. The HEAR program is focused on making energy-efficiency upgrades accessible to low- and middle-income households earning 150% or less of their AMI. Eligible residents will be able to save up to $14,000, including up to:
-
$8,000 for an ENERGY STAR-certified electric heat pump for space heating and cooling.
-
$4,000 for an electrical panel.
-
$2,500 for electrical wiring.
-
$1,750 for an ENERGY STAR-certified electric heat pump water heater.
-
$1,600 for insulation, air sealing, and mechanical ventilation products.
-
$840 for an ENERGY STAR-certified electric stove, cooktop, range, or oven.
-
$840 for an ENERGY STAR-certified electric heat pump clothes dryer.
Multifamily properties are eligible for HOMES rebates of up to $8,000 per dwelling unit and HEAR rebates of up to $14,000 per dwelling unit.
Available later: Michigan expects to expand the HOMES and HEAR programs outlined above, including a measured savings pathway for HOMES, to be available statewide beginning early in 2025.
To learn more about the Michigan rebate programs visit its Home Energy Rebates website. Contractors interested in participating in Michigan’s federal rebate programs can sign up here.
|
|
More States Launching Rebate Programs
Home Energy Rebates are coming online in more states to help American families save energy and save money with energy-efficient home upgrades. You can check the status of your state’s program at energy.gov/save/rebates.
For more information on what you can do to save energy and save money, visit www.energy.gov/save.
|
|
About Home Energy Rebates
On Aug. 16, 2022, President Joseph R. Biden signed the Inflation Reduction Act. The law includes nearly $400 billion to support clean energy and address climate change, including $8.8 billion in Home Energy Rebates, which provide two separate rebate programs to consumers:
The Home Efficiency Rebates provide $4.3 billion to discount the price of energy-saving retrofits in single-family and multi-family buildings. These rebates are administered by states and territories.
The Home Electrification and Appliance Rebates provide $4.5 billion for high-efficiency upgrades in homes. These rebates are administered by states, territories, and Tribes, which will receive $225 million of this amount.
For more information, sign up for our email updates and visit the Home Energy Rebates website and State Progress Dashboard.
|
|
|
|
|
