Home Owner Managing Energy Savings (HOMES): Rebate Program

Overview

Whole-House Retrofits Can Get up to $8,000

The HOMES program provides performance-based rebates for whole-house energy saving retrofits. The amount of the rebate varies by the amount of energy savings—up to $8,000 (or $400,000 for a multifamily building) depending on energy savings and household income. HOMES will be available sometime in the second half of 2024. This is subject to the DOE and individual state implementation timelines.

Status

Coming Soon

Qualifications

The credit is available only for qualifying expenses to an existing home, either an addition or renovation vs. new construction. The credit is nonrefundable, meaning homeowners cannot get back more from the credit than what is owed in taxes; any excess credit cannot be carried into future tax years either.

The HOMES rebate is based on Area Median Income (AMI). Rebates are doubled for low- and moderate-income households (LMI) (individuals making less than 80% of area median income) to help those with the highest energy burdens to better-afford upgrades. Retrofits that achieve modeled energy savings of 20 to 35% are eligible for a rebate of 50% of the project costs, up to $2,000. Retrofits that achieve modeled savings >35% are eligible for up to $4,000. The rebates increase to 80% of costs up to $4,000 and $8,000 for households at <80% AMI. Multifamily buildings are also eligible.

In addition to robust rebates for LMI households, state HOMES programs can also reward those who work on energy efficiency in underserved communities. Note: Contractors operating within the program can claim a $200 rebate per underserved home they work on.

Applicants, either homeowners or contractors, can demonstrate savings by comparing energy consumption before and after the retrofits through one of two ways. One method is to use energy models that estimate the energy performance of the whole house; the other is to measure performance.

Rebate calculation

Each method–either modeled or measured–will show different savings and rebate calculation.

Modeled Energy Savings

Projects must achieve modeled energy savings of at least 20 percent to qualify for rebates.
Larger rebates are available for projects achieving modeled energy savings of at least 35 percent.
Rebates double for low- and moderate- income individuals.

Modeled Energy Savings Pathway

Energy Savings	Single-family	Multifamily
20-34%	$2,000 or 50% of the project cost (whichever is less).	$2,000 per dwelling unit, with a maximum of $200,000 per multifamily building.
20-34%	For low- and moderate- income (LMI) individuals, $4,000 or 80% of the project cost (whichever is less).
35% +	$4,000 or 50% of the project cost (whichever is less).	$4,000 per dwelling unit, with a maximum of $400,000 per multifamily building.
35% +	For LMI individuals, $8,000 or 80% of the project cost (whichever is less).

Measured Energy Savings

Portfolios of projects must achieve measured energy savings of 15 percent across the portfolio to qualify for rebates.
Payment rate is per kWh and equal to $2,000 for a 20% reduction of energy use for the average home in the state.
Rebates double for low- and moderate- income individuals.

Measured Energy Savings Pathway

Energy Savings	Single-family and Multifamily
15% +	$2,000 payment rate per kWh saved equal to a 20% reduction for the average home in the state, or 50% of project cost. Energy baselines are calculated based on the average energy use of single-family homes or multifamily buildings in the state. For LMI individuals, $4,000 payment rate per kWh saved equal to 20% reduction per home or dwelling unit, or 80% of project cost. For multifamily building to qualify, at least 50% of residents must be LMI.

Energy Savings

Single-family and Multifamily

15% +

$2,000 payment rate per kWh saved equal to a 20% reduction for the average home in the state, or 50% of project cost.

Energy baselines are calculated based on the average energy use of single-family homes or multifamily buildings in the state.

For LMI individuals, $4,000 payment rate per kWh saved equal to 20% reduction per home or dwelling unit, or 80% of project cost. For multifamily building to qualify, at least 50% of residents must be LMI.

The IRA prohibits combining HOMES rebates with any other federal grant or rebate. However, homeowners can combine HOMES rebates with federal tax credits like the Energy Efficient Home Improvement Credit (EEHIC) 25C tax credit, as well as state or utility rebate programs, which could allow incentive stacking as an additional incentive for homeowners to pursue home performance upgrades.

Learn more

Home Energy Rebates Program: State Status Tracker

Updated February 16th, 2024

As part of the Inflation Reduction Act, states were given the option to apply for federal funding to support the High-Efficiency Electric Home Rebate (HEEHR) and the Home Owner Managing Energy Savings (HOMES): Rebate Programs. States have the option to opt out of the programs if they wish or apply for federal funds. To see your states application status, and learn more about the program see the link below.

Home Energy Rebates Program: Status of State Applications | Department of Energy

Disclaimer: Please be aware that funds are administered by the state and participation is voluntary on a state-by-state basis. Be sure to check if you state is participating in the Rebate Programs. Fund distribution is subject to the DOE and individual state implementation timelines. The advice offered here is intended as a basic guide only and not to be used as, or substituted for, professional tax preparation advice. We strongly advise you seek professional support for assistance and advise you to consult with a certified tax preparation specialist or CPA as appropriate.

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