Home Energy Rebate Programs
Background
On August 16, 2022, President Biden signed the landmark Inflation Reduction Act (IRA) into law. The law includes $391 billion to support clean energy and address climate change, including $8.8 billion in rebates nationally for home energy efficiency and electrification projects.
The Home Energy Rebate Programs include the Home Efficiency Rebates (HER) and Home Electrification and Appliance Rebates (HEAR). Rhode Island will receive approximately $32 million for the HER program and $31 million for the HEAR program. The goal of these two rebate programs is to increase the energy efficiency in homes thereby decreasing residential energy bills and carbon emissions. The HER program will provide rebates to customers undergoing a home energy improvement that is modeled to reduce their energy use by a minimum of 20%. The HEAR program is income-restricted and will provide rebates on home electrification upgrades.
Program Design and Application
The Office of Energy Resources submitted the HEAR and HER program applications to the U.S. Department of Energy. The HEAR application was approved and OER launched the income-eligible program pathway September 17th, 2024. The retail pathway will launch in 2026 making rebates available to both low- and moderate-income Rhode Island residents. Rhode Islanders must apply and be pre-approved for a rebate before using a coupon to purchase an eligible product. The HER program application was accepted and is pending U.S. Department of Energy approval to launch. The HER program will provide funding for multifamily properties to upgrade their heating systems to energy efficient heat pumps.
Inflation Reduction Act Energy Tax Credits
In addition to the Home Efficiency Rebates programs, the IRA established federal tax credits for home energy upgrades. The credit is not available for any property placed in service after December 31, 2025. Additional information the tax credits are available at: https://www.irs.gov/credits-deductions/residential-clean-energy-credit
State Incentive Calculator
To help identify existing energy rebates, tax credits, and incentives that may be available to you, please visit our incentive calculator at: https://energy.ri.gov/energy-incentives/incentive-calculator.