Bianca Sanchez, bianca.sanchez@sierraclub.org
BOSTON, MA - Today, the Department of Energy (DOE) released guidance for states to apply for new Home Energy Rebates Program funding. The program, created by the Inflation Reduction Act (IRA), will distribute a total of $8.5 billion dollars in formula grants for states to deliver home electrification and efficiency rebates to help consumers better afford upgrades that will lower utility bills, improve home comfort and resilience, and reduce indoor and outdoor air pollution. Massachusetts is eligible to receive $146 million to distribute to consumers.
Each state will develop its own rebates program based on the guidance laid out by DOE, for which there is administrative support available. Once the state program is developed, DOE will approve its rollout. Applications will be accepted on a rolling basis through January 2025, with consumer rebates expected to be available to consumers in many states by late 2023 or early 2024.
As Massachusetts begins to use this federal guidance, Sierra Club Massachusetts is urging officials to coordinate state and federal funding for weatherization, electrification, and home health and safety repairs into one streamlined whole-home retrofit program with this IRA funding to maximize benefits and reduce red tape. Officials should also ensure robust stakeholder feedback, find ways to include and protect renters, and put a primary focus on delivering rebates to low-income households. DOE guidance requests states allocate at least half of program funds to reach low-income households and prepare Community Benefits Plans to assure funds are invested in good jobs and real economic opportunities.
The Home Energy Rebates Program will improve the liveability and energy affordability of homes across Massachusetts. DOE estimates consumers will save up to $1 billion each year in energy costs.
It will also help grow the job market and boost manufacturing for energy efficient appliances, “supporting an estimated 50,000 U.S. jobs in residential construction, manufacturing, and other sectors,” according to DOE. A companion program, called the Contractor Training Program, provides states with funds to “train, test, and certify residential energy efficiency and electrification contractors.”
In response, Acting Sierra Club Massachusetts Chapter Director Vick Mohanka released the following statement:
“Buildings are a major source of emissions and dangerous air pollution. Buildings are our shelter from increasingly strong storms, dramatic heat waves, air quality events, and severe cold snaps, as the Commonwealth has experienced in recent years. Our homes must be safe and comfortable. Electrification and energy efficiency upgrades help achieve these goals while increasing quality of life, affordability, and moving us closer to the grid of the future. Appliance swaps and electrical updates cannot be reserved for only those with the most resources. Massachusetts officials must act swiftly to adapt this guidance from DOE to develop the state’s Home Energy Rebates Program so residents — especially environmental justice populations, low & fixed-income households, and renters — can afford to make these vital home electrification and energy efficiency improvements.”
About the Sierra Club
The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.