DOE Approves First IRA Rebate Program in New York, 11 Other States Apply

Posted on:

May 5, 2024

In April, the U.S. Department of Energy marked an important milestone by awarding an initial $158 million for New York State to implement the nation’s first home energy rebate program under the Inflation Reduction Act.

Full details of New York State’s application may not be available until the program launches in “late spring or early summer,” but according to a New York State Energy Research and Development Authority (NYSERDA) press release, last week’s approval is of a partial-scope application for the Home Electrification and Appliance Rebates (HEAR) Program. It will be limited to residents under 80% of area median income and fund up to 100% of electrification project costs through NYSERDA’s existing EmPower+ program. New York plans to submit a full application later this year that would include the Home Efficiency Rebates (HOMES) Program while expanding HEAR eligibility to moderate income residents and multi-family projects.

DOE also announced that 11 other states – Arizona, California, Colorado, Georgia, Hawaii, Indiana, Minnesota, New Hampshire, New Mexico, Oregon, and Washington – have submitted applications. Click here to track your state’s status. There’s no requirement to disclose details at the time of application, but ACCA expects many states will follow New York’s multi-stage approach, so there’s still time to influence program design.

DOE has also released new and updated guidance documents, including Required Elements of a Consumer Protection Plan. Contractors may recall ACCA celebrated the requirement for consumer protection plans to “establish minimum quality installation standards” and establish “QA processes that allow the state to verify and document whether installation standards have been met.” ACCA has encouraged states to take this requirement seriously, going beyond superficial checklists to actually verify system design and commissioning with tools like QI Certificates. While the updated guidance on “installation” is effectively unchanged, the “data review” section now requires project data to include “proof of commissioning testing on HVAC and heat pump water heater equipment.”

Contractors and their state associations can help develop contractor-friendly programs by meeting with their state energy offices and responding to their requests for information. A growing number of states and partner organizations are hosting listening sessions and surveys for contractors, including Maryland on May 9 and Georgia online.

Contractors may find it helpful to share two documents ACCA developed to support quality program design:

Guidelines for Residential Heat Pump Initiatives – ACCA’s Products Committee developed these guidelines to help states understand the complexity of heat pump system design and design contractor-friendly rebate programs. 
ACCA’s Proposed Program Element: Quality Installation Certificates – ACCA’s proposal to NASEO suggests prioritizing HVAC installations commissioned with smart connected tools and verified by an ACCA Quality Installation (QI) certificate.

States have until August 16, 2024 to declare their intention to apply and until January 31, 2025 to submit full applications. States that choose not to apply will see their share of $8.8 billion in rebate funds re-allocated to participating states.

For a more nuanced update, members can watch the recording of ACCA 2024’s IRA panel: IRA Rollout Across America: Efficiency Rebates to Grow Your Business.

Please contact Sean Robertson at sean.robertson@acca.org with questions or to share news about your state.