Wisconsin becomes first state in the nation to launch Home Efficiency Rebate Program

According to DOE, Wisconsin homeowners could receive thousands of dollars through the Home Energy Rebate programs to save energy and save money on energy-efficient home upgrades

MILWAUKEE — Gov. Tony Evers on Aug 2nd, joined U.S. Department of Energy (DOE) Secretary Jennifer Granholm and Public Service Commission of Wisconsin (PSC) Chairperson Summer Strand in Milwaukee to announce the launch of the Home Efficiency Rebate (HOMES) Program. Wisconsin is the first state in the nation to launch the HOMES Program to deliver rebates to households undertaking whole-home, energy-saving improvements under the new program. Gov. Evers also announced Wisconsin received federal approval of its Home Electrification and Appliance Rebate (HEAR) Program application, meaning Wisconsin residents will soon be able to access instant discounts on purchases of efficient electric home appliances and equipment.

“The HOMES and forthcoming HEAR programs will go a long way in lowering costs for important energy efficiency and clean energy upgrades for households across the nation and here in Wisconsin,” said Gov. Evers. “Together, these programs will save folks and families up to $1 billion every year in energy costs and support roughly 50,000 jobs. This is proof that we don’t have to choose between protecting the environment and economic development and creating jobs—we can and are doing both. 
 
“Throughout this entire process, we have been glad for the tremendous partnership between PSC and Focus on Energy, as well as the leadership of President Biden and the entire Biden-Harris Administration to support these and other important clean energy efforts,” Gov. Evers continued. “Building a brighter, stronger, clean energy future starts right at home, and I look forward to seeing how these programs will work to help lighten burdensome costs for folks and families across the state.”

Wisconsin’s launch of the HOMES program is part of the Biden-Harris Administration’s nationwide initiative to provide $8.8 billion in federal funding for states, territories, and Tribal Nations to lower energy costs and increase efficiency by making it cheaper to install cost-saving measures in homes such as heat pumps, electrical panels, and insulation. According to DOE, these energy-saving measures will save American households up to $1 billion annually in energy costs and support an estimated 50,000 U.S. jobs in residential construction, manufacturing, and other sectors. These investments also advance President Joe Biden’s Justice40 Initiative, which sets a goal that 40 percent of the overall benefits of certain federal climate, clean energy, affordable and sustainable housing, and other investments flow to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution.

“The Biden-Harris Administration is helping families save energy and save money, and we’re not slowing down,” said U.S. Secretary of Energy Granholm. “Wisconsin is leading the pack of states building up their local workforce and keeping money in the pockets of their residents, all thanks to the Investing in America agenda.”

“Home energy rebates for clean and energy-efficient appliances and upgrades are good for the planet because they help cut pollution. But more importantly, they are good for Wisconsin families because they will save money by lowering energy bills,” said John Podesta, senior advisor to the president for International Climate Policy. “Congratulations to Wisconsin for being the second state in the nation to make these game-changing Inflation Reduction Act incentives available to their residents.”

According to DOE, many Americans spend a large portion of their monthly income on heating, cooling, and powering their homes—with some of the lowest-income families spending upwards of 30 percent of their income on energy bills. Overall, individual households could save hundreds on monthly energy bills and save thousands of dollars on energy-efficient home upgrades by participating in the Home Energy Rebate programs. To advance the objective of these programs, DOE is requiring that states and territories allocate at least half of the rebates to low-income households, defined as those earning 80 percent or less of their area median income. States and territories must also submit Community Benefits Plans to ensure good jobs and other economic opportunities are available. To help keep consumers informed and equipped with resources, DOE recently released a Consumer Bill of Rights framework and is encouraging state, territorial, and Tribal rebates programs to adopt it.

“I am proud to join Gov. Evers and Secretary Granholm to celebrate the launch of the Home Efficiency Rebate Program in Wisconsin,” said PSC Chairperson Strand. “After robust public engagement and planning phases, we thoughtfully designed Wisconsin’s Home Energy Rebate programs to ensure broad access without barriers and easy and effective participation through streamlined processes. The Home Energy Rebate programs are a win, win, win for Wisconsin, and we are excited to begin deployment to help households save energy, save money, and support our workforce!” 

WISCONSIN’S HOME ENERGY REBATE PROGRAMS 
In August 2022, President Biden signed the Inflation Reduction Act (IRA), which included $8.8 billion for the Home Energy Rebates programs. Wisconsin was allocated $149 million under the federal formula to administer the two Home Energy Rebates programs: HOMES and HEAR. Under HOMES, $74.8 million will be available to support whole-home energy efficiency improvements, including insulation, air sealing, heating, ventilation, and air conditioning upgrades. All Wisconsin households are eligible for HOMES, including multifamily buildings. Beginning Aug. 1, 2024, interested households can verify eligibility status and locate a registered contractor. By early September, households will be able to submit rebate requests through the online portal on the Focus on Energy website. More information about HOMES rebates and eligibility is available here.

Under the HEAR Program, $74.5 million will be available to help low- and moderate-income households save energy and money by providing instant discounts to households that install high-efficiency home appliances and equipment, including heat pumps and electric appliances. HEAR rebates will be available beginning in fall 2024. More information about HEAR savings and eligibility is available here.

According to DOE, residents will first complete a home energy assessment provided by a licensed energy auditor to determine the home’s upgrade needs and establish the estimated energy savings each upgrade would provide. Low-income households are eligible for a rebate to help cover the cost of the home energy assessment. Rebate amounts are based on household income and the amount of estimated energy savings.

For single-family homes, rebates will range between:

• Up to $10,000 for those making less than 80 percent of their area median income (AMI). 
• Up to $4,000 for those making between 80 percent to 150 percent AMI. 
• Up to $3,000 for those making at or above 150 percent AMI.

DOE states that multifamily properties are also eligible. Rental units with low-income tenants are eligible for up to $10,000 in rebates, depending on estimated energy reductions.

Wisconsin is the first state to have both of its Home Energy Rebate program applications approved by the DOE. Focus on Energy, Wisconsin’s statewide energy efficiency program, will administer HOMES and HEAR rebates. Utilizing Focus on Energy’s existing statewide framework for delivering energy efficiency programs and rebates uniquely positions Wisconsin to expeditiously and effectively deliver HOMES and HEAR rebates to households across the state. Focus on Energy will continue to manage and maintain its existing programs separately to ensure transparency, accountability, and compliance.

On Thursday, the PSC approved the program design for the Training for Residential Energy Contractors (TREC) grant program. TREC funds will be used to help further develop Wisconsin’s residential energy efficiency and electrification workforce. Contractors trained, tested, and certified through this program can also be connected with projects funded by the Home Energy Rebates programs to help deliver these important initiatives. The initial round of the TREC competitive grant program will open in late 2024.

More information about the Home Energy Rebates programs is available here.