The Department of Energy announced that it is accepting applications for $8.5 billion in rebate programs aimed at reducing energy bills and increasing energy efficiency in U.S. homes. These rebates will cover items like insulation, heat pumps, and efficient appliances. The programs were funded by President Joe Biden’s Inflation Reduction Act, which was passed by Democrats in Congress last year without any Republican votes.

The department estimates that the rebate programs will save about $1 billion annually in energy costs and create around 50,000 jobs in construction, manufacturing, and other industries.

Deputy U.S. Energy Secretary David Turk stated that the rebates are expected to be available in some states by the end of this year and will continue on a rolling basis in 2024. However, the timeline depends on how quickly states and territories apply for and receive funds.

When asked about the potential for some states with Republican governors to decline the funds, Turk expressed hope that all partners across the country would see the benefit of participating in the program.

The Home Efficiency Rebates program will provide $4.3 billion in formula grants to state energy offices for whole-home energy efficiency upgrades in single and multi-family homes. On the other hand, the Home Electrification and Appliance Rebates program will offer $4.275 billion to states to reduce the costs of efficient electric technologies and $225 million in grants to tribes.

The department highlights that low-income families could save up to $14,000 through the rebates on energy-efficient purchases. Additionally, consumers who receive these rebates will not be required to report their value as income.

(Source: Reuters)