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States should cut low-income residents' utility bills using new home energy rebates
(ACEEE blog, 23 Mar 2023) Later this year, households across the country will begin tapping nearly $9 billion in new federal Home Energy Rebates to make energy-saving and electrification improvements. Low-income residents particularly stand to benefit from the lower utility bills.
But states—charged with administering the rebate programs—need to ensure that low-income households can take advantage of the funding.
Congress created a broad structure for the rebates as part of the Inflation Reduction Act last year (along with providing other home efficiency funding), and the Department of Energy (DOE) is now preparing further guidance for state energy offices. If the rebates successfully support improvements in affordable housing, they could—aligned with the goals of the R2E2 initiative, which we co-lead—“lower utility bills, reduce greenhouse gas emissions, improve residents’ health, create good-paying local jobs, and help mitigate racial inequity.”
Here are five steps the department can recommend and that states can take as they design their programs:
Set aside funds for affordable housing: Congress intended to focus the rebates especially for affordable housing by significantly increasing the benefits for households earning under 80% of the local area median income (which is, on average, income under about $72,000 for a family of four).
ACEEE blog, 23 Mar 2023: States should cut low-income residents' utility bills using new home energy rebates
