The Inflation Reduction Act’s (IRA) Home Energy Rebates program has allocated $212 million to Louisiana for residents to upgrade to more energy-efficient appliances.

Home Energy Rebates would provide up to $14,000 in point-of-sale discounts for low- and middle-income households, including $8,000 to upgrade an air conditioner, $1,750 to upgrade a water heater, $840 to upgrade a stove or clothes dryer, $4,000 to upgrade an electrical panel, etc…

These consumer discounts would cover the full cost of these home-efficiency projects.

Additionally, contractors delivering these services would be eligible for up to $500 per project.

Why Do Home Energy Rebates Matter?

These rebates will be applied at the time of purchase, unlike tax credits which many people only see when filing their tax returns in April.

The IRA’s Home Energy Rebates will also primarily benefit low- and middle-income families, since most discounts are provided to households earning less than 150% of the area’s median income (~$123,000/year in New Orleans).

According to NREL, the rebates would save households 38-50% on their energy bill, amounting to $300-$1000+/year in savings!

Needless to say, Home Energy Rebates would make a massive difference in the budget of low- and middle-income families.

When Will Rebates Be Available for Louisiana Homeowners?

Unfortunately, the Home Energy Rebates will NOT be available for Louisianans until the state applies for our allocation. 

The state’s application window opened this summer when the Department of Energy (DOE) issued the program’s guidelines and recommendations. The DOE also released “Quick Start” program guidance, allowing states to claim up to 25% of their funds to partially deploy the Home Energy Rebates in 2023.

Some states are applying quickly and they will be able to roll out the program later this year. Many of the remaining states will have their programs up and running by early 2024.

However, it is not yet clear when or if Louisiana residents will start to receive these rebates. The $212 million in available funds for Louisiana are on hold because the state has yet to apply for funds.

Why Hasn’t Louisiana Applied for the Home Energy Rebates?

The state hasn’t made any official statements regarding when they will apply for the rebates. However, if we miss the Quick Start program window, then the rebates will not be available until at least three months after the state applies, no earlier than April 2024.

State officials surely have their hands full with other priorities. However, this reason is insufficient to warrant delaying this massive opportunity to benefit Louisianans.

Additionally, the Department of Energy is making it as easy as it can be for State Energy Offices to set up Home Energy Rebates, releasing detailed guidance and providing early access to administrative funding to preempt concerns states may have when setting up the program.

What Can We Do to Get Home Energy Rebates?

Right now, these rebates are in the hands of our elected officials. We must push them to act so Louisiana households can benefit from the cost savings and improved comfort of upgrading their homes with energy-efficient heat pumps, appliances, water heaters, insulation, and weatherization.

Until the program’s application is submitted, we won’t see a single dollar of the $212 million. We also run the risk of losing the funds completely. Florida has publicly stated it plans not to participate, forfeiting the $346 million in program funding and depriving its residents of these energy efficiency savings. These funds will be redistributed to states that apply.

Chris Justin, the co-founder of Plan Your Energy, a New Orleans-based company that helps homeowners upgrade to more energy-efficient appliances, encourages people, “The Inflation Reduction Act’s Home Energy Rebates are an excellent opportunity for homeowners in Louisiana. Households will immediately save money on their energy bills, while reducing the chances their aging equipment breaks down at the worst possible time. We should do everything we can to protect these common-sense savings measures for Louisianans.”

Slow-rolling $212 million of federal money, at $14,000 per qualifying household, would be a mistake. We must protect what’s ours by asking that our elected officials quickly submit the state’s application for the IRA’s Home Energy Rebates.