Inflation Reduction Act Home Energy Rebate Programs
Initial applications for both the HEAR and HER program have been submitted and are currently under review by DOE. Blueprint development (the second step before the launch of programs) is underway. DEEP expects these rebate programs to roll out in 2025.
On August 16, 2022, President Biden signed the Inflation Reduction Act (IRA) into law. The law included $391 billion to support clean energy and address climate change, including $8.8 billion in rebates for home energy efficiency and electrification projects. Through these IRA provisions, Connecticut is eligible to receive $49,830,560 for the Home Efficiency Rebate program (HER) and $49,732,517 for the Home Electrification and Appliance program (HEAR), together referred to as the Home Energy Rebate Programs. HER allows for “whole house rebates” related to energy savings. HEAR will offer rebates for electric appliances and other efficiency equipment.
The rebates offered through HER and HEAR will help Connecticut households save money on energy bills, upgrade to clean energy equipment, improve energy efficiency, and reduce indoor and outdoor air pollution.
The Connecticut Department of Energy and Environmental Protection (DEEP) is in the process of developing federal applications for HER and HEAR in order to access the funding. Please note that HER and HEAR rebates will not be available until our federal applications are approved by the US Department of Energy (DOE). DEEP has already received HER and HEAR Early Administrative Funding and has contracted with VEIC to assist with developing the federal applications. Through a robust public engagement process, DEEP and VEIC will gather public feedback on program design options to ensure that these programs support Connecticut’s energy efficiency, sustainability, and energy equity and affordability goals.
Program Status Updates
Updates on federal application submissions, DOE application approvals, HER and HEAR rebate availability, along with other general program updates will be posted here.
- DEEP received Early Administration Funding for HER and HEAR in September 2023.
- DEEP began working with VEIC in March 2024.
- DEEP and VEIC currently drafting HER and HEAR federal applications and conducting stakeholder engagement on program design options.
- Initial HEAR application submitted to DOE on 7/19/24. An iterative process with DOE is expected to finalize this application. Blueprint development (the 2nd major application deliverable) is underway.
- DEEP has requested to DOE that this program target low-income households (<80% AMI) in both single family and multifamily buildings, and to include rebates for all allowable upgrades (heat pumps, heat pump hot water heaters, electric stoves and ranges, heat pump clothes dryers, electric panels and wiring, and insulation, air sealing, and ventilation). This project framework was informed by public comments received through the RFI, technical session, and many stakeholder conversations. The project framework is subject to change based on DOE approval.
- HEAR rebates are not currently available. DOE must approve both the initial application and the Blueprint before the program can be launched. See "Current available energy efficiency incentives" section below for other available options.
- Initial HER application submitted to DOE on 9/18/24. Like with the HEAR program, an iterative process with DOE is expected to finalize this application. Blueprint development (the 2nd major deliverable) is underway.
- DEEP has requested that this program target low-income multifamily buildings (at least 50% of units <80% AMI, with priority given to households that qualify as low-income under existing CT programs) and the funding flow through the existing utility-run Multifamily Initiative program. This program will provide rebates based on modeled energy savings predicted from a home energy upgrade. Efficiency rebate amounts will increase as energy savings increase. The project framework is subject to change based on DOE approval.
- HER rebates are not currently available. DOE must approve both the initial application and the Blueprint before program launch. See “Current available energy efficiency incentives” section below for other available options.
- DEEP expects these rebate programs to roll out in 2025.
- DEEP is in the process of contracting with Connecticut's regulated electric utilities to administer the bulk of this program, with 5% held in reserve for programs to be designed at a later date for areas of the state not covered by a regulated electric utility.
Public Engagement Opportunities
DEEP held a public Technical Meeting on Thursday May 16, 2024, 10:30 AM – 4:30 PM to discuss these programs with stakeholders. For more information related to the Technical Meeting click the links below.
IRA Home Energy Rebate Programs Technical Meeting Notice | Agenda | Recording | Presentation Slides (below)
- Building Energy Retrofit Funding Landscape (DEEP)
- IRA Rebate Program Overview (VEIC)
- DEEP Facilitated Discussion (Part I and II)
- Stakeholder Presentation- Sealed
- Stakeholder Presentation-PACE
- Stakeholder Presentation-NORA
- Stakeholder Presentation-Freeheatpump.com
- Stakeholder Presentation-Pearl Certification
- Stakeholder Presentation-Bob Keen, a Retired Power Engineer
Last May, DEEP issued a Request for Information (RFI). This RFI helped inform DEEP’s approach to IRA Rebate Program design and implementation. DEEP received written responses from various stakeholders including but not limited to potential and existing program administrators, local governments, energy contractors, labor organizations, manufacturers of efficiency equipment and materials, community-based organizations, non-governmental organizations, building owners and landlords, and residents. Written responses to the RFI may be found on DEEP's Energy Filings Page. A summary of the RFI responses and how they are being used to inform the programmatic design of HER and HEAR can be found here.
LEARN MORE:
- Inflation Reduction Act Overview and FAQ
- Summary of the Inflation Reduction Act
- Inflation Reduction Act Guidebook
- IRS Overview of Inflation Reduction Act Credits and Deductions
- Energy Savings Hub | Department of Energy
Current available energy efficiency incentives
There are many incentives currently available for Connecticut residents to take advantage of now:
- Energize CT (for Eversource and UI customers)
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Connecticut Municipal Electric Energy Cooperative (CMEEC) (for municipal utility customers)
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Financing through the Connecticut Green Bank
More information on federal funding opportunities relevant to DEEP can be found here: Opportunities from the Federal Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA).
Contact Us
If you would like to be added to an email list to be notified of public engagement opportunities for the IRA Home Energy Rebate Programs, please send an email to DEEP.EnergyBureau@ct.gov.
Content last October, 2024.