Inflation Reduction Act

Who will benefit the most from the Inflation Reduction Act (IRA)?

While the IRA has something for everyone, the most extensive benefits are focused on low-and moderate-income customers (LMI). Traditionally, these folks pay much higher proportions of their household income toward electricity, and therefore, need the most help. Since many LMI communities also live in the least energy-efficient homes, the opportunity for energy savings is even greater.

When will the states get their funding, and how long do they have to spend it?

States and territories can apply to one or both of the IRA’s home energy rebate programs and will receive funding once the DOE approves their plans. Programs will be available until the funds are used entirely or September 30, 2031, whichever comes first.Energy offices must submit a separate application for each program and will receive 25% of their allocated funds once their program application is approved. The U.S.

What is a Quick Start Program?

A Quick Start Program lets states and territories who plan to launch their home energy rebate program in 2023 apply for up to 25% of their funding allocation. These applications will be prioritized for approvals by the DOE and are intended for states and territories that plan to use existing programs in the area to rapidly launch the new IRA rebates.

What opportunities does the new guidance create for state and utility collaboration?

The DOE’s guidance strongly encourages states to collaborate with utilities and their energy efficiency programs, but it does not specifically require it. Existing utility program infrastructure, such as branding and outreach, qualified contractor networks, and rebate delivery should be strongly considered when developing an application.

How will IRA programs verify people’s income and eligibility?

State programs can choose between several verification options to confirm what level of rebates a household is eligible for based on income. Traditional income documentation, such as a Form 1040, is one option. Another option is for states to lean on recognized programs that people may already participate in like SNAP, Medicaid, and Weatherization Assistance Programs (WAP).