In 2023, the U.S. Department of Energy released its program guidance for the Homeowners Managing Efficiency Rebates (HOMES) and Home Electrification and Appliance Rebates (HEAR) programs, which together allocate over $208 million to North Carolina to provide energy efficiency rebates.
In March 2024, DEQ applied for the planning grant funds for the home energy rebates programs. DEQ is using these funds to complete the applications and the state rebate program design.
In Summer 2024, DEQ completed the applications and required program design blueprint for the implementation funds. DEQ continues to work to implement the NC Home Energy Rebate Program and is aiming to launch the program in early 2025.
Frequently Asked Questions
Question 1: Are home energy rebates from the Inflation Reduction Act currently available?
No. DEQ is working to design and implement a program that makes rebates accessible to North Carolina residents. In July 2024, North Carolina submitted the applications for the U.S. Department of Energy’s (DOE) Home Energy Rebates (HER) and Home Electrification and Appliance Rebates (HEAR) programs. In August 2024, the state submitted additional program design blueprints to DOE and is awaiting feedback. In September 2024, DOE approved North Carolina’s applications for federal funding. DEQ is now working to launch the program by early 2025.
Question 2: What is the timeline for program rollout?
DEQ knows it’s important to start the Home Energy Rebate Program quickly so North Carolina residents can access the rebates. DEQ aims to launch the program and begin accepting applications in early 2025. The timeline for the NC Home Energy Rebate Program is designed to meet all the important rules and standards from the U.S. Department of Energy (DOE).
Question 3: How will the rebate program work?
How to Apply: DEQ will launch the program in early 2025. Materials provided after the program launch will include detailed information on everything residents need to know so they can apply. The application process will include the ability for applicants to apply online, via phone, and U.S. mail. Information such as income or participation in existing income-qualified programs (to determine income eligibility) and energy usage from utility bills may be needed to apply. Once eligibility is determined, the applicant can reach out to an eligible contractor to assess the home’s energy needs and develop a plan for upgrades and rebates for DEQ’s review and approval.
How to Access Rebates: Rebates will be submitted, processed and reimbursed through contractors. Contractors will be reimbursed once the project invoice and other required post-installation documentation is submitted to and approved by DEQ.
Some people might want to purchase and install appliances or do the work themselves. But, to get the rebate, a qualified contractor or installer must do the work.
Question 4: Will rebates be available to residents who purchased home energy upgrades before the program started?
DEQ will follow the U.S. Department of Energy guidance on retroactive rebate eligibility. DOE requires that states provide rebates for eligible whole house energy savings retrofits that began on or after August 16, 2022. These projects would need to comply with state and federal program requirements to be eligible, including income-eligibility and using a contractor in the Qualified Contractor Network. Rebates offered through the Home Electrification and Appliance Rebates are not available retroactively.
Projects completed before the programs officially launch may not comply with the guidelines established later on. For all of these reasons, residents are encouraged to wait until the North Carolina Home Energy Rebate Program has been established and review the program requirements before making purchases to ensure the best chance of qualifying for the rebates.
Question 5: Who is eligible for the Home Energy Rebate Program?
A North Carolina resident’s eligibility is primarily based on their annual income and household size. If your income falls within a certain range for your area, you may be eligible for the program. Additional tools to support eligibility determination will be available soon.
Home energy rebates are available to both owners and renters of single-family homes or multi-family buildings. If a resident is enrolled in certain existing federal assistance programs, such as the Low-Income Energy Assistance Program (LIEAP) or Medicaid, they may be eligible for the Home Energy Rebate Program without needing to provide additional income information. Households with incomes below 80% of the Area Median Income (AMI) may be eligible for a larger rebate amount.
Renters will need to coordinate with their landlord for approval to participate in the program. Owners of multi-family buildings can apply for rebates for the whole building or for just some of the apartments as long as eligibility is met by over 50% of the tenants.
Question 6: What factors determine how much money a household can get for home energy rebates?
The money available for home energy rebates varies depending on factors including:
Per-household rebate limits established by the law and program administrators,
What technology or technologies are being installed in the home,
Whether or not the project has estimated energy savings, and how those energy savings are calculated,
The household’s Area Median Income (AMI), and
The total project cost.
Area Median Income is determined by the Federal Department of Housing and Urban Development (HUD) each year. You can use the HUD portal to view AMI by county and number of family members. Here is another tool that provides AMI calculations by state, county and up to the 150% AMI limit by number of family members.
Question 7: Will the Home Energy Rebate Program integrate with existing home energy benefit programs, e.g., LIEAP or WAP?
Yes. DEQ will allow people who are already participating in existing home energy programs like the Low-Income Energy Assistance Program (LIEAP) or the Weatherization Assistance Program (WAP) to participate in the Home Energy Rebate Program, as long as they meet the Program’s eligibility criteria. People who are on the waitlist for WAP are eligible to apply for this program. However, double counting rebates from different federal grants to cover the same upgrade is not allowed.
Question 8: Is the Home Energy Rebate Program a resource for those experiencing emergencies (e.g., heater goes out during wintertime, hurricane or other weather-related event occurs) and in need immediate assistance?
No. The Home Energy Rebate Program is not designed for those experiencing emergencies like a broken heater or the effects of recent hurricane damage. This program is focused on proactive upgrades to make homes more energy-efficient and help households save money in the long run. You can find resources for emergency assistance through the North Carolina Department of Health and Human Services (DHHS) and North Carolina Department of Public Safety (DPS), as well as other resources.
Question 9: What if I want to conduct an energy efficiency or electrification project in my home but I am not eligible to participate in this program?
If you are not eligible to participate in this program based on your income, other resources may be available to you to. Your utility provider may offer rebates for specific energy efficiency projects or appliances. More information can be provided by contacting your provider. The U.S. Internal Revenue Service (IRS) also offers tax credits for specific residential energy projects. More information can be found here: https://www.irs.gov/credits-deductions/energy-efficient-home-improvement-credit.
Question 10: What is a disadvantaged community?
There are many ways to define a disadvantaged community and many factors that can make some communities more at risk than others. All North Carolinians who meet the eligibility criteria are eligible for Home Energy Rebates regardless of whether they live in a “disadvantaged community” or not. For this program, DEQ is using a definition of disadvantaged communities that incorporates a combination of energy burden, poverty levels, social mobility, life expectancy, health and well-being, housing costs, environmental stress, climate change impacts, access to healthcare and employment rates. This definition will be used to identify areas where DEQ can provide incentives for contractors to implement energy efficient upgrades. Contractors will receive extra incentives to work in these communities.
DEQ will look at different data to measure risks, like poverty levels, social mobility, life expectancy, health and well-being, housing costs, environmental stress, climate change impacts, access to healthcare, and employment rates. These contributing factors help DEQ identify where to focus extra help. A community may be identified as disadvantaged through any one or more of the tools below to be considered a disadvantaged community:
