Guidelines Released for States to Apply New Home Energy Rebates Funding
Friday, July 28, 2023
NJ Leadership Must Develop Rebates Programs Focused on Low-Income Consumers and Renters
Today, the Department of Energy (DOE) released guidance for states to apply for new Home Energy Rebates Program funding. The program, created by the Inflation Reduction Act (IRA), will distribute a total of $8.8 billion dollars in formula grants for states to deliver home electrification and efficiency rebates to help consumers better afford upgrades that will lower utility bills, improve home comfort and resilience, and reduce indoor and outdoor air pollution. New Jersey is eligible to receive $183 million to distribute to consumers.
Each state will develop its own rebates program based on the guidance laid out by DOE, for which there is administrative support available. Once the state program is developed, DOE will approve its rollout. Consumer rebates are expected to be available to consumers in many states by late 2023 or early 2024.
As New Jersey begins to use this federal guidance, Sierra Club New Jersey is urging officials to streamline state and federal funding for weatherization, electrification, and home health and safety repairs into one whole-home retrofit program with this IRA funding to maximize benefits and reduce red tape. Officials should also ensure robust stakeholder feedback, find ways to include and protect renters, and put a primary focus on delivering rebates to low-income households.
The Home Energy Rebates Program will improve the liveability and energy affordability of homes across New Jersey. It will also help grow the job market and boost manufacturing for energy efficient appliances. A companion program, called the Contractor Training Program, provides states with funds to “train, test, and certify residential energy efficiency and electrification contractors.”
In response, Sierra Club Anjuli Ramos-Busot, New Jersey Sierra Club Director, released the following statement:
“Buildings are a major, often overlooked source of climate emissions and dangerous air pollution. More importantly, though, buildings are our shelter from increasingly strong storms and dramatic heat waves and cold snaps. Buildings are our homes where we feed and grow our families – they must be safe and should be comfortable. Electrification and energy efficiency upgrades help achieve clean, safe homes. These appliance swaps and electrical updates should not be reserved for only those with the most resources. New Jersey officials must act swiftly to adapt this guidance from DOE to develop the state’s Home Energy Rebates Program so New Jersey residents, especially low-income folks and renters, can access support in making these vital electrification and energy efficiency improvements.”