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Home Energy Rebates Update |
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Biden-Harris Administration Announces District of Columbia’s Launch of Federal Home Energy Rebate Programs to Help Lower Families’ Utility Bills |
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Eligible District Homeowners and Multifamily Building Owners Can Use the Federal Home Energy Rebate Programs to Save Energy, Save Money on Energy-Efficient Upgrades, and Lower Housing Costs |
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WASHINGTON, D.C. — As part of President Biden’s Investing in America agenda, the U.S. Department of Energy (DOE) announced today that the District of Columbia is launching its federal Home Energy Rebate programs, supported by the Inflation Reduction Act. The District is launching the Home Efficiency Rebates (HOMES) and the Home Electrification and Appliance Rebates (HEAR) programs to lower energy bills by lowering costs for energy efficiency improvements.
The District’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 today’s launch of both Home Energy Rebate programs, Washingtonians will have a new option to help pay for energy-saving upgrades,” said Keishaa Austin, Principal Deputy Director, Department of Energy’s Office of State and Community Energy Programs. “By gearing these programs towards those who most need the help, DC’s rebates will make the impossible possible for many families in our nation’s capital.”
“The District continues to be a leader in residential energy efficiency and electrification incentive programs,” said Richard Jackson, Director of the DC Department of Energy and Environment. “We are excited to expand access to incentives, especially for our low-income residents. This federal funding, paired with District of Columbia investments, will enable residents to electrify their homes through clean and affordable energy upgrades.”
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.
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The District of Columbia’s Home Energy Rebate Programs
The District of Columbia’s federal and local rebate programs will be overseen by the DC Department of Energy and Environment (DOEE), working closely with its implementing contractor, the DC Sustainable Energy Utility (DCSEU). The District will deliver federal rebates to eligible residents through existing equity-focused programs administered by the DCSEU, an approach that will ensure home energy upgrades are accessible to all residents.
HEAR program:
The District is utilizing federal HEAR funding to expand its Affordable Home Electrification Program (AHEP), which replaces residential gas appliances and systems with energy-efficient electric appliances and systems for qualifying households.
Through AHEP, eligible owners of single-family homes and multifamily buildings will have 100% of the cost of a whole-home electrification covered through a combination of up to $14,000 in federal rebates per dwelling unit and local efficiency funding. The federal rebates will provide up to:
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$8,000 for an ENERGY STAR-certified heat pump HVAC.
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$4,000 for an electrical panel.
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$2,500 for electrical wiring.
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$1,750 for an ENERGY STAR-certified heat pump water heater.
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$1,600 for insulation, air sealing, and ventilation.
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$840 for an ENERGY STAR-certified electric stove, cooktop, range, or oven and/or an ENERGY STAR-certified electric heat pump clothes dryer.
Initially, the District’s AHEP program will be available only to low-income single-family households (i.e., those earning below 80% of the area median income (AMI)) and multifamily buildings where at least 50% of households are low-income. The District plans in 2027 to open the program to moderate-income households (i.e., those earning between 80-150% of AMI) and multifamily buildings (i.e., at least 50% of residents with income below 150% of AMI).
HOMES program:
The District’s HOMES program will expand its Affordable Housing Retrofit Accelerator (AHRA), a technical and financial program for qualifying affordable multifamily building owners. HOMES will serve multifamily affordable housing properties where at least 50% of occupied units are occupied by low-income households (below 80% AMI).
Implemented by the DCSEU, AHRA supports these owners and managers in implementing energy-efficiency measures, electrification, and deep energy retrofits. Building owners and managers must participate in the AHRA program to utilize the HOMES program. Participating buildings receive one-on-one technical assistance from DCSEU and will be connected directly with qualified contractors and installers.
Projects that reduce a unit’s energy usage by an estimated 20-34% are eligible for a rebate of up to $15,000 per unit. Projects that reduce a unit’s estimated energy usage by 35% or more are eligible for a rebate of up to $30,000 per unit. In both cases, projects may be eligible for additional resources from District to ensure that the affordable housing building owners can unlock the benefits of electrification and energy efficiency while maintaining affordability for residents.
Visit the District’s Home Energy Rebates webpage to learn more about the HEAR and HOMES programs.
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More States Get Ready for Rebate Launch
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.
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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.
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