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 Rebates program will help American households save money on energy bills, upgrade to clean energy equipment, improve energy efficiency in their homes and reduce indoor and outdoor air pollution. The U.S. Department of Energy (DOE) estimates that in total, these rebates will save American households up to $1 billion on energy bills annually and support over 50,000 jobs. The Home Energy Rebates program is made up of two distinct programs: Home Efficiency Rebates (HER) and Home Electrification and Appliance Rebates (HEAR). Of the $8.8B in total funding, the Maine Governor’s Energy Office (GEO) will receive at least $71.7 million in formula funds for HER ($35.9 million) and HEAR ($35.7 million). Both programs will be limited to funding energy upgrades on residential buildings. The HER program will focus on qualifying energy efficiency upgrades and the HEAR program will promote qualifying electrification measures.
Separate provisions of the IRA expanded federal tax credits to support home efficiency upgrades and the adoption of certain efficient appliances and vehicles. Those updates to tax credits have already taken effect. For more information on eligibility and procedures for accessing all state and federal residential incentives, including the HER and HEAR funding once available in Maine, please visit the Efficiency Maine website.
Program Design and Application
To receive this federal funding, Maine must submit an application demonstrating how its proposed programs will be implemented consistent with DOE rules. Through the end of 2023 and into early 2024, GEO is working with Efficiency Maine and MaineHousing to determine best uses of the funds based on federal regulations and guidelines as well as existing programmatic activities. In addition, GEO is working to ensure Maine’s HER and HEAR programs will align with goals established by Maine Won’t Wait, reduce energy burden, serve disadvantaged and underserved communities (including low-income communities and multifamily residences, among others), and meet federal Justice 40 requirements.
Stakeholder Meeting & Draft Proposal
On January 23, 2024, GEO, Efficiency Maine, and MaineHousing hosted a public meeting in person and via Zoom to present a draft proposal and solicit stakeholder feedback. Meeting slides are available to view and download here.