IMPLEMENTATION GUIDANCE FOR STATES: HOME ELECTRIFICATION REBATE PROGRAM

This guide provides implementation recommendations for state energy offices (SEOs) to design and deploy the Home Electrification Rebate program, a $4.5 billion initiative established by the Inflation Reduction Act (IRA) to support residential electrification for low- and moderate-income households.

• The Home Electrification Rebate program allocates $4.5 billion in total, with $4.275 billion designated for state energy offices and $225 million for tribal governments. Funding is distributed via formula and is restricted to low- or moderate-income (LMI) households, owners of multifamily units with at least 50% LMI occupants, and entities performing qualified projects on their behalf.
• Rebate amounts are determined by income eligibility: households with less than 80% Area Median Income (AMI) receive 100% cost coverage (including installation), while those between 80%–150% AMI receive 50%. The maximum total consumer rebate is $14,000, with specific caps including $8,000 for Heat Pump HVAC, $4,000 for Breaker Boxes, and $1,750 for Heat Pump Water Heaters.
• To maximize program impact, RMI recommends that states train contractors on new technologies like induction cooktops and cold-weather heat pumps, as a lack of contractor confidence can hinder adoption. States are also encouraged to create 'one-stop-shop' programs to simplify the 'stacking' of federal, state, utility, and local incentives.
• To ensure equitable access for low-income households, the guide suggests setting spending goals of 40% to 80% of funding for low-income groups and minimizing income documentation through categorical eligibility. For properties using Low Income Housing Tax Credit (LIHTC), the guide recommends offering zero-interest, long-term loans instead of rebates to avoid taxable income issues or reductions in the eligible basis.
• State program plans must include mechanisms to verify income eligibility for point-of-sale rebates and ensure that no entity receives duplicate rebates for the same project from other federal grant or rebate programs.

APA

RMI (2023). IMPLEMENTATION GUIDANCE FOR STATES: HOME ELECTRIFICATION REBATE PROGRAM. https://rmi.org/app/uploads/dlm_uploads/2023/02/home_electrification_rebate.pdf

Chicago

RMI. IMPLEMENTATION GUIDANCE FOR STATES: HOME ELECTRIFICATION REBATE PROGRAM. 2023. https://rmi.org/app/uploads/dlm_uploads/2023/02/home_electrification_rebate.pdf.

Wikipedia

{{cite report |author=RMI |title=IMPLEMENTATION GUIDANCE FOR STATES: HOME ELECTRIFICATION REBATE PROGRAM |date=February 2023 |url=https://rmi.org/app/uploads/dlm_uploads/2023/02/home_electrification_rebate.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2023implementation, author = {{RMI}}, title = {{IMPLEMENTATION GUIDANCE FOR STATES: HOME ELECTRIFICATION REBATE PROGRAM}}, institution = {RMI}, year = {2023}, month = feb, url = {https://rmi.org/app/uploads/dlm_uploads/2023/02/home_electrification_rebate.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }