Energy Efficiency Rebates
In 2023, the U.S. Department of Energy released its program guidance for the Homeowners Managing Efficiency Rebates (HOMES) and Home Electrification and Appliance Rebates (HEAR) programs, which together allocate over $208 million to North Carolina to provide energy efficiency rebates.
In March 2024, DEQ applied for the planning grant funds for the home energy rebates programs. DEQ is using these funds to complete the applications and the state rebate program design.
In Summer 2024, DEQ completed the applications and required program design blueprint for the implementation funds. DEQ continues to work to implement the NC Home Energy Rebate Program and is aiming to launch the program in early 2025.
Frequently Asked Questions
Question 1: Are home energy rebates from the Inflation Reduction Act currently available?
No. DEQ is working to design and implement a program that makes rebates accessible to North Carolina residents. In July 2024, North Carolina submitted the applications for the U.S. Department of Energy’s (DOE) Home Energy Rebates (HER) and Home Electrification and Appliance Rebates (HEAR) programs. In August 2024, the state submitted additional program design blueprints to DOE and is awaiting feedback. In September 2024, DOE approved North Carolina’s applications for federal funding. DEQ is now working to launch the program by early 2025.
Question 2: What is the timeline for program rollout?
DEQ knows it’s important to start the Home Energy Rebate Program quickly so North Carolina residents can access the rebates. DEQ aims to launch the program and begin accepting applications in early 2025. The timeline for the NC Home Energy Rebate Program is designed to meet all the important rules and standards from the U.S. Department of Energy (DOE). Here is a timeline of events related to the program:
Question 3: How will the rebate program work?
How to Apply: DEQ will launch the program in early 2025. Materials provided after the program launch will include detailed information on everything residents need to know so they can apply. The application process will include the ability for applicants to apply online, via phone, and U.S. mail. Information such as income or participation in existing income-qualified programs (to determine income eligibility) and energy usage from utility bills may be needed to apply. Once eligibility is determined, the applicant can reach out to an eligible contractor to assess the home’s energy needs and develop a plan for upgrades and rebates for DEQ’s review and approval.
How to Access Rebates: Rebates will be submitted, processed and reimbursed through contractors. Contractors will be reimbursed once the project invoice and other required post-installation documentation is submitted to and approved by DEQ.
Some people might want to purchase and install appliances or do the work themselves. But, to get the rebate, a qualified contractor or installer must do the work.
Question 4: Will rebates be available to residents who purchased home energy upgrades before the program started?
DEQ will follow the U.S. Department of Energy guidance on retroactive rebate eligibility. DOE requires that states provide rebates for eligible whole house energy savings retrofits that began on or after August 16, 2022. These projects would need to comply with state and federal program requirements to be eligible, including income-eligibility and using a contractor in the Qualified Contractor Network. Rebates offered through the Home Electrification and Appliance Rebates are not available retroactively.
Projects completed before the programs officially launch may not comply with the guidelines established later on. For all of these reasons, residents are encouraged to wait until the North Carolina Home Energy Rebate Program has been established and review the program requirements before making purchases to ensure the best chance of qualifying for the rebates.
Question 5: Who is eligible for the Home Energy Rebate Program?
A North Carolina resident’s eligibility is primarily based on their annual income and household size. If your income falls within a certain range for your area, you may be eligible for the program. Additional tools to support eligibility determination will be available soon.
Home energy rebates are available to both owners and renters of single-family homes or multi-family buildings. If a resident is enrolled in certain existing federal assistance programs, such as the Low-Income Energy Assistance Program (LIEAP) or Medicaid, they may be eligible for the Home Energy Rebate Program without needing to provide additional income information. Households with incomes below 80% of the Area Median Income (AMI) may be eligible for a larger rebate amount.
Benefit Type | Income Threshold |
|---|---|
Up to 100% of project costs covered by the rebate up to a certain amount | Household income less than 80% of AMI |
Up to 50% of project costs covered by the rebate up to a certain amount | Household income between 80% and 150% of AMI |
Not Eligible | Income more than 150% of AMI |
Renters will need to coordinate with their landlord for approval to participate in the program. Owners of multi-family buildings can apply for rebates for the whole building or for just some of the apartments as long as eligibility is met by over 50% of the tenants.
Question 6: What factors determine how much money a household can get for home energy rebates?
The money available for home energy rebates varies depending on factors including:
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 estimated energy savings, and how those energy savings are calculated,
The household’s Area Median Income (AMI), and
The total project cost.
Area Median Income is determined by the Federal Department of Housing and Urban Development (HUD) each year. You can use the HUD portal to view AMI by county and number of family members. Here is another tool that provides AMI calculations by state, county and up to the 150% AMI limit by number of family members.
Question 7: Will the Home Energy Rebate Program integrate with existing home energy benefit programs, e.g., LIEAP or WAP?
Yes. DEQ will allow people who are already participating in existing home energy programs like the Low-Income Energy Assistance Program (LIEAP) or the Weatherization Assistance Program (WAP) to participate in the Home Energy Rebate Program, as long as they meet the Program’s eligibility criteria. People who are on the waitlist for WAP are eligible to apply for this program. However, double counting rebates from different federal grants to cover the same upgrade is not allowed.
Question 8: Is the Home Energy Rebate Program a resource for those experiencing emergencies (e.g., heater goes out during wintertime, hurricane or other weather-related event occurs) and in need immediate assistance?
No. The Home Energy Rebate Program is not designed for those experiencing emergencies like a broken heater or the effects of recent hurricane damage. This program is focused on proactive upgrades to make homes more energy-efficient and help households save money in the long run. You can find resources for emergency assistance through the North Carolina Department of Health and Human Services (DHHS) and North Carolina Department of Public Safety (DPS), as well as other resources.
Question 9: What if I want to conduct an energy efficiency or electrification project in my home but I am not eligible to participate in this program?
If you are not eligible to participate in this program based on your income, other resources may be available to you to. Your utility provider may offer rebates for specific energy efficiency projects or appliances. More information can be provided by contacting your provider. The U.S. Internal Revenue Service (IRS) also offers tax credits for specific residential energy projects. More information can be found here: https://www.irs.gov/credits-deductions/energy-efficient-home-improvement-credit.
Question 10: What is a disadvantaged community?
There are many ways to define a disadvantaged community and many factors that can make some communities more at risk than others. All North Carolinians who meet the eligibility criteria are eligible for Home Energy Rebates regardless of whether they live in a "disadvantaged community" or not. For this program, DEQ is using a definition of disadvantaged communities that incorporates a combination of energy burden, poverty levels, social mobility, life expectancy, health and well-being, housing costs, environmental stress, climate change impacts, access to healthcare and employment rates. This definition will be used to identify areas where DEQ can provide incentives for contractors to implement energy efficient upgrades. Contractors will receive extra incentives to work in these communities.
DEQ will look at different data to measure risks, like poverty levels, social mobility, life expectancy, health and well-being, housing costs, environmental stress, climate change impacts, access to healthcare, and employment rates. These contributing factors help DEQ identify where to focus extra help. A community may be identified as disadvantaged through any one or more of the tools below to be considered a disadvantaged community:
Climate and Economic Justice Screening Tool (CEJST) developed by the Council of Environmental Quality.
EJScreen developed by US Environmental Protection Agency.
Index of Deep Disadvantage (IDD) developed by the University of Michigan.
Question 11: What are the rebate limits?
DEQ will allow the highest rebate amounts per upgrade allowed by federal law. The maximum rebate is between $14,000 and $16,000 for whole home energy upgrades, depending on your income and qualified needs. If you think you may be eligible, DEQ will help you find out what you qualify for.
Question 12: How will DEQ educate the public about the Home Energy Rebate Program and the benefits of the home energy upgrades?
DEQ will deploy different mechanisms to educate the public about the Home Energy Rebate Program and benefits of home energy upgrades, including, but not limited to, flyers, videos, and using web and local news. DEQ is developing educational materials to explain the program, the benefits of participation, eligibility requirements and application instructions. This information will be updated regularly as the program is rolled out. Additionally, as outlined in FAQ Question 21, DEQ plans to partner with local community organizations and leaders to educate the public.
Question 13: What safeguards will DEQ put in place to protect homeowners participating in the program?
DEQ will put in place several safeguards to protect homeowners participating in the Home Energy Rebate Program. Household consumers will have the ability to directly file comments, issues, and complaints and ask questions through the following feedback channels once the program has launched:
Web: A submission form on the program website that will capture detailed descriptions and consumer contact information related to a comments or complaints.
Consumer Hotline: A toll-free number to capture voicemail messages with comments or complaints. Consumers will be notified that all voicemails will be recorded and contact information will be stored for processing.
Email: A dedicated email address for consumers to submit comments or complaints.
Paper Form: A paper copy of the submission form that can be requested through U.S. mail and include a prepaid postage return envelope.
DEQ will develop and maintain an official list of qualified contractors to make sure only contractors licensed in accordance with State law can participate in this program. All participating contractors must sign and comply with the Contractor Participation Agreement to provide services under the Home Energy Rebate Program.
DEQ may initiate a conflict resolution procedure for feedback requiring further investigation, conflict resolution, and remediation, such as potential contractor unfair business practices or inappropriate behavior toward the consumer. Pending the severity and/or volume of the comments, the contractor participation agreement will provide that a contractor may be placed on a performance plan, be removed from the qualified contractor list, or receive additional Quality Assurance/Quality Control training until their performance is satisfactory.
Question 14: How can the public provide feedback and insights on the program?
DEQ wants to hear your feedback and insights about the Home Energy Rebate Program. The public can share thoughts through the program website, email, phone, or U.S. mail. DEQ will also work with local community groups and leaders to collect more feedback. DEQ solicited public input in a Public Input Session in August 2024 and intends to host additional sessions. View the meeting materials and recording: Energy Efficiency Rebates | NCDEQ. As the public shares feedback and insights, DEQ will review and make changes if needed to make sure the program works well for everyone.
Question 15: 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.
Question 16: 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.
Question 17: How will DEQ support a skilled and qualified workforce?
DEQ is committed to supporting a skilled and qualified workforce as part of the Home Energy Rebate Program. DEQ will create a Responsible Contractor Policy that outlines criteria for contractor participation, such as compliance with labor laws, safety standards, insurance and warranty requirements. Contractors must comply with this policy to be included on the Qualified Contactor List. Participating contractors will receive ongoing training and certification opportunities as part of the program.
Question 18: How will DEQ support diverse contractors and small businesses?
DEQ is committed to engaging underrepresented business owners throughout the program. DEQ will collaborate with the Historically Underutilized Business (HUB) Office to conduct outreach. DEQ will also engage with business associations and community organizations and encourage program participation among underrepresented business owners.
DEQ will also align state efforts with the DOE Training Residential Energy Contractors (TREC) program to support a diverse ecosystem of residential energy contractors. This includes regular meetings with the TREC team, collaborating with the North Carolina Department of Commerce to recruit underrepresented groups into training programs, and engaging with minority-serving institutions to promote workforce training.
Question 19: How do contractors get reimbursed?
For projects initiated after program launch, the contractor must apply for rebate reimbursement no fewer than 60 days prior to the expiration date listed on the rebate coupon. This will give DEQ enough time to process the rebate. Contractors need to send in all the required information, including the final work plan, invoices and proof the work was completed. DEQ’s program implementer will be responsible for rebate processing within 30 days of all required post-retrofit document submission.
DEQ will additionally provide either a contractor or aggregator $200 for each dwelling unit located in a disadvantaged community upon completion and verification of the installation.
Question 20: How do contractors become members of the contractor network?
Contractors must meet required qualifications to be added to the Qualified Contractor List. The qualifications will include state licensing, insurance, certifications, trainings, and meeting labor standards. DEQ will engage with contractor entities to confirm these required contractor qualifications. Once developed, the list of qualifications will be made available on the program website.
Prior to a contractor being added to the Qualified Contractor list, the contractor will need to sign a Participation Agreement that will include standard Terms and Conditions for all contractors participating in the program.
The complete list of trainings and certification programs to meet requirements of the Qualified Contractor List will be made available on the program website. DEQ will provide more information on how contractors can request to enroll in the coming months. DEQ will work to integrate with North Carolina’s IRA Section 50123, State Based Home Energy Efficiency Contractor Training Grant Program, to offer assistance related to training and certification needs as available.
Question 21: Will the State work with and train community-based organizations and nonprofit agencies to assist homeowners through the application process?
Yes. DEQ invites local community organizations and leaders (e.g., faith-based, community-based, advocates, non-profits) to engage with their communities through different education and outreach initiatives. DEQ will also partner with organizations to help households complete their applications. If your organization is interested in supporting the Home Energy Rebate Program, please contact the State Energy Office Public Information Officer.
Public Engagement
DEQ is committed to reviewing public input and is actively working to incorporate feedback by continuously providing program updates as they become available, soliciting feedback and hosting listening sessions, and designing a program that is accessible to the public.
Learn about DEQ's public engagement
DEQ is still accepting public input:
| Event | Location | Date and Time | Meeting Materials |
|---|---|---|---|
| Public Input Session | Virtual | Thursday, August 1, 2024 6:30 p.m. |