Home Energy Rebates
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- Current: Home Energy Rebates
Home Energy Rebate Programs
Funded by federal legislation and administered through the U.S. Department of Energy, the State of Indiana will receive approximately $182 million to assist Hoosiers in reducing the cost of energy by improving the energy efficiency of their homes through qualified energy efficiency upgrades, retrofits, and high-efficiency appliances.
Home Energy Rebate Programs
The Home Energy Rebate programs consist of the two separate and distinct energy efficiency-related programs: the Home Efficiency Rebates (HOMES) and the Home Appliance Rebates (HEAR). OED will administer these programs jointly to maximize impact to Hoosiers.
Both programs are expected to become available to Hoosiers in late 2024.
The timing is subject to change based upon the progress of developing the full program applications and receiving approval from the U.S. Department of Energy.
About the Home Efficiency Rebate Program
The Home Efficiency Rebate program, also known as the HOMES program, focuses on energy efficiency upgrades and retrofits to residential buildings, both single-family and multi-family dwellings.
Qualified energy efficiency upgrades that achieve at least 20% in energy savings will be eligible for rebates up to the lesser of $2,000 or 50% of the project cost. Projects that achieve greater energy efficiency savings or occur for a low-income household (less than 80% Area Median Income) may be eligible for greater rebates.
About the Home Appliance Rebate Program
The Home Appliance Rebate program is exclusively for low- and moderate-income households (less than 150% Area Median Income) to purchase high-efficiency equipment. Like the HOMES program, both single-family and multi-family dwellings qualify.
The rebate amounts are set by the federal legislation and include equipment such as heat pump water heaters, heat pumps for space heating and cooling, stoves, clothes dryers, and includes certain electrical upgrades like service load centers and electric wiring.
Process & Timeline
The Indiana Office of Energy Development is undertaking a comprehensive planning, design, and implementation process that will include public stakeholder input. The primary steps involved in this process include with anticipated timing:
- Review federal program guidance (July – August 2023, and ongoing as guidance is updated)
- Apply for early administrative funding needed to design comprehensive plans for implementation (September 2023)
- Issue Request for Services (RFS) to solicit a third-party contract to assist OED in the planning, design, and implementation of the Home Energy Rebate programs (November 2023)
- Receive federal funding award for the early administrative funding (February 2024)
- Enter into contract with the selected third-party contractor (February 2024)
- Develop the comprehensive plans with stakeholder input (February – July 2024)
- Submit the plans for federal approval to the U.S. DOE (July 2024)
- Receive federal approval (September 2024)
- Begin program implementation (October 2024)
OED is currently on Step 7, which will continue until federal approval is received. Click Here for Timeline Graphic.
Next Steps
In early 2024, the U.S. Department of Energy invited the Indiana OED to participate in a hands-on and expedited process with DOE (referred to as a Sprint) to begin the initial application steps for the full program design. The initial high-level application checklist was submitted to DOE on 03/15/2024.
Indiana OED has recently completed an initial planning process to design and develop the implementation blueprint plans for the Home Energy Rebate program. As part of this process, OED held 2 webinars and 4 in-person public meetings across the state to gather stakeholder input and to facilitate public engagement.
Indiana OED submitted its implementation blueprint plans in early July to the U.S. Department of Energy and is awaiting federal approval.
Thank you for your interest in the Indiana Home Energy Rebates Public Engagement Sessions. We appreciate your engagement. Slide decks from each meeting are posted below.
Past Meetings
Virtual Closing Session - June 27, 2024
Fort Wayne - June 25, 2024
Evansville - June 13, 2024
Indianapolis - June 11, 2024
Gary - Wednesday, May 22, 2024
Statewide Virtual Kickoff - April 30, 2024
The first virtual meeting, a statewide kickoff, was held on Tuesday, April 30, at 6:30 pm EDT (5:30 pm CDT).
Resources
- U.S. Department of Energy Home Energy Rebates Homepage
- U.S. Department of Energy Home Energy Rebates FAQ
- 2024 Area Median Income Tables
Other Financial Incentive Programs for Homeowners
Tax Credits
In the meantime, some IRA residential tax credit provisions have immediate effect or became effective in early 2023. This offers a near-term opportunity for homeowners to obtain residential efficiency products and improvements as the two programs above are developed. For example, qualifying home improvements made after December 31, 2021, may be eligible for these federal tax credits, including purchases of ENERGY STAR certified products and improvements to the building shell. They include:
- Equipment Tax Credits for Primary Residences for energy efficiency equipment purchased or improvements made for your principal residence, such as air conditioning units, water heaters, furnaces, insulation, windows, or doors. Information regarding home energy tax credits can also be found through the U.S. Department of Energy website.
- Renewable Energy Tax Credits for renewable energy systems installed at your principal or secondary residence, such as geothermal, solar, wind, or biomass.
Indiana Property Tax Deductions
Certain renewable energy systems installed on your property may qualify for Indiana Property Tax Deductions. This includes solar, wind, geothermal, and hydroelectric devices. For more information, contact your County Auditor’s Office. The state form can be found by visiting the Indiana Department of Local Government Finance website.
Weatherization/Energy Conservation
Housed under the Indiana Housing & Community Development Authority (IHCDA) The Weatherization Assistance Program provides energy conservation measures to reduce the utility bills of low-income Hoosiers across the state. The program offers consumers a permanent solution to reducing their energy bills by making their homes more energy efficient. More information about this program can be found on the IHCDA website.
Energy Assistance Program (EAP)
Also housed under the IHCDA, the Energy Assistance Program (EAP) can help low-income Hoosiers pay their heat and electric bills. EAP provides a one-time annual benefit that can assist you with the high cost of home energy and can help if you are disconnected or are about to get disconnected. More information on the EAP program can be found on the IHCDA website.
Utility Rebates and Energy Efficiency Programs
Indiana’s investor-owned electric utilities are required to file with the Indiana Utility Regulatory Commission (IURC) a request for approval of an energy efficiency plan not less than one time every three years. These plans include residential, commercial, and industrial programs focused on reducing energy consumption through demand side management (DSM) practices.
Learn more about Indiana’s utility demand response, energy efficiency, and energy audit/assessment programs through the links below.
Contact Us
To submit a comment or question regarding the Home Energy Rebate Programs, email rebates@oed.in.gov
To receive email updates from OED, please subscribe here.
A Home Energy Rebate FAQ is coming soon and will be posted here.