DOE Home Energy Rebates return: what contractors should know
Posted on:
After nearly four years of delays and uncertainty, the U.S. Department of Energy (DOE) has re-launched the Home Energy Rebate programs – HOMES and HEEHR – which promise to deliver $8.8 billion for energy efficient home improvements that will save Americans billions in energy costs for decades to come.
ACCA’s government relations team – Sean Robertson and Chris Czarnecki – met with Assistant Secretary of Energy Audrey Robertson and her team to discuss the Trump Administration’s vision for these programs.
Assistant Secretary Robertson expressed a commitment to affordability and simplicity that should get this assistance to American consumers much more quickly. The ACCA team applauded these efforts but also emphasized the continued need for quality installation and commissioning as a safeguard against fraud, waste, and abuse.
New guidance targets simplicity and affordability
Over the next three months, every participating state energy office will need to revise their programs and re-apply under new guidance released last week:
We look forward to partnering with DOE, the state energy offices, and ACCA’s state and local Allied Contracting Organizations to ensure a successful rollout over the coming months.
Quality installation remains essential and QI certificates streamline verification
Prior guidance was greatly complicated in pursuit of unrelated administration goals, and these changes should speed implementation that is long overdue. We are concerned, however, about the weakening of post-installation inspection and commissioning verification requirements. These requirements exist for good reason: up to 90% of residential HVAC installations have significant installation faults costing 30-50% of rated efficiency.
The ANSI/ACCA 5 QI Standard for Quality Installation was developed precisely to codify what good installation looks like, and ACCA’s new Quality Installation certificates make verification easier than ever. Certified quality installation is an essential safeguard against fraud, waste, and abuse, so we look forward to working with state energy offices and program implementors to ensure that consumers and taxpayers get what they pay for.
Read more about ACCA’s Proposed Program Element: Quality Installation Certificates, and look for updated materials in the weeks ahead. While the PNNL Quality Installation Tool adopted by most states in 2024 is better than nothing, contractors who have integrated modern tools like ACCA’s Quality Installation certificates or NCI’s Certified System Performance certificates into their business processes should not have to manually enter duplicate data for a rebate.
More flexibility means HVAC contractors will need to move fast
One of the most significant changes from the prior HEEHR program is a shift from encouraging fuel switching to prohibiting it. ACCA believes strongly in an all-of-the-above, fuel-neutral approach to energy efficiency that keeps government away from the kitchen table conversations where contractors and homeowners decide on the most cost-effective and technically appropriate solutions that ACCA’s quality standards prescribe for each unique home. Just as requiring fuel switching constrains consumer choice, so does prohibiting it. A silver lining, however, may be renewed interest in dual-fuel solutions that are often the most technically appropriate and cost-effective solution for colder climates.
Another promising theme is the shift from prescribing specific equipment – like requiring ENERGY STAR equipment for the HOMES program – to promoting realized efficiency of the whole home as a system. Contractors committed to doing the job right could benefit from the new HEEHR program requirement to utilize needed insulation and air sealing rebates before installing a heat pump. Unfortunately, the new guidance also embraces retail and DIY approaches to other eligible investments for cooking, clothes drying, and water heating. HVACR contractors will need to act fast to educate their customers about heat pump rebates before program funds race out the front door of your local home improvement store.
Get ready to educate your customers
With rebates up to $14,000 and 100% of improvement cost, these programs could greatly expand the home performance market. That’s a huge opportunity for savvy contractors but will surely attract new competition.
While some things have changed and updated materials are in the works, we encourage you to review our prior blogs and webinars for program background and advice:
- ACCA Supports Quality Installation, Tech Neutrality in DOE Rollout of IRA Efficiency Rebate Programs
Note that some of these materials reference enhanced tax credits that have since sunset. You can take action go bring them back.
TAKE ACTION
The new guidance gives even more discretion to the states and HARDI has put together an excellent IRA Toolkit with specific resources and links for each participating state (South Dakota and Idaho have opted out).
ACCA remains committed to working with DOE, state energy offices, and our contractor members to ensure these programs fulfill their potential: driving adoption of high-efficiency equipment, supporting a skilled and growing contractor workforce, and delivering real, verified savings to American homeowners.
Posted In: Energy Policy, Government, Quality Standards, Top Priorities
