(This page was last updated 4/4/2023)
The Inflation Reduction Act will provide nearly $200 million in new funding to North Carolina for rebates to help make energy efficiency upgrades to single and multifamily homes. These rebates are split into two programs; the HOMES program and the High-Efficiency Electric Home rebate program (HEEH).
HOMES
The HOMES program will allocate over $98 million to North Carolina to address whole-house energy efficiency upgrades. The program is intended to offer rebates of up to $4,000 depending on how much energy the project saves once it is complete, increasing to up to $8,000 for families making up to 80 percent of median income in their area.
HOMES program rebates also extend to multifamily unit owners on a per-unit basis.
High-Efficiency Electric Homes (HEEH)
The High-Efficiency Electric Homes program will allocate another nearly $98 million to help low-to-moderate-income families purchase efficient appliances. Items such as heat pumps and electric cooking equipment may qualify for rebates. Additional funding exists for upgrading wiring, electrical panels, insulation and air sealing.
Inflation Reduction Act FAQ
1: Are home energy rebates from the IRA currently available?
No. The U.S. Department of Energy is still working to develop a timeline to distribute IRA funding to states and Native American tribes. The tentative DOE timeline sets summer 2023 as the target for releasing guidance to states, which is needed before NCDEQ can begin distributing IRA rebates. This timeline is subject to change.
2: When will I be able to access home energy rebates?
Once the U.S. Department of Energy has made IRA funds available, NCDEQ will be responsible for setting up programs to make those funds available to the public. The timeline is tentative and subject to change, but the N.C. State Energy Office expects households to be able to access these rebates in late 2023/early 2024. This FAQ list will continue to be updated as more information on the program and program timeline is available.
3: Will home energy rebates be available retroactively?
DEQ must establish programs that ensure compliance with the law, and cannot do so until the U.S. Department of Energy releases their own requirements and guidance. Projects completed before programs are in place may not comply with the guidelines established later on, and rebates administered at point of sale would be difficult to implement months after the purchase was made. For all of these reasons, citizens are encouraged to wait until the North Carolina energy rebate program has been established and review the program requirements before making purchases to ensure the best chance of qualifying for the rebates.
4: What factors determine how much money a household can get for home energy rebates?
The money available for home energy rebates varies depending on:
- 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 measured or estimated energy savings, and how those energy savings are calculated,
- The household’s area median income, and
- The total project cost.
The table below summarizes the maximum allowed rebate amounts defined in the law for different types of home efficiency and electrification projects.
Type of Home Energy Project | Maximum Allowed Rebate Amount Per Household Below 80% Area Median Income (AMI) | Maximum Allowed Rebate Amount Per Household Above 80% Area Median Income (AMI) |
---|---|---|
Home Efficiency Project with at least 20% predicted energy savings | 80% of project costs up to $4,000 |
50% of project costs up to $2,000 (maximum of $200k for a multifamily building) |
Home Efficiency Project with at least 35% predicted energy savings | 80% of project costs up to $8,000 | 50% of project costs up to $4,000 (maximum of $400k for a multifamily building) |
Home Electrification Project Qualified Technologies (only households with an income below 150% AMI are eligible) | 100% of project costs up to technology cost maximums*; up to $14,000 | 50% of project costs up to technology cost maximums*; up to $14,000 (households with incomes above 150% AMI are not eligible) |
*Maximum rebated costs for Home Electrification Project Qualified Technologies
- ENERGY STAR electric heat pump water heater—up to $1,750
- ENERGY STAR electric heat pump for space heating & cooling—up to $8,000
- ENERGY STAR electric heat pump clothes dryer— up to $840
- ENERGY STAR electric stove, cooktop, range, or oven—up to $840
- Electric load service center—up to $4,000
- Electric wiring—up to $2,500
- Insulation, air sealing, and ventilation—up to $1,600
Visit the table here to view 80% area median income limits in communities across North Carolina.
5. Are there any IRA benefits that I can access now?
Tax credits are available through the IRS for certain qualifying home energy efficiency improvements, including insulation, heating equipment and others. Visit the IRS online at https://www.irs.gov/inflation-reduction-act-of-2022 and consult your tax professional for more information.
6. Where can I learn more about Inflation Reduction Act Home Rebates?
Visit the U.S. Department of Energy's FAQ page at https://www.energy.gov/scep/slsc/home-energy-rebate-programs to keep up to date on developments at the Federal level, and for more detailed information.