Texas to seek $690 million for home energy efficiency rebates

The head of the State Energy Conservation Office (SECO) announced last week that the agency will apply for $690 million due to Texas for residential energy efficiency rebates. The funding supports two new programs established by the Inflation Reduction Act: Home Energy Rebates and Home Electrification and Appliance Rebates.

Unlike tax credits available for energy efficiency, these programs will provide discounts upfront, to a max of $14,000 (however, tax credits are available now – the rebates won’t be until next year). The most generous rebates are reserved for low-to-moderate income households, but everyone can take advantage of the Home Energy Rebates.

Home Energy Rebates

The Home Energy Rebates program (aka HOMES) provides rebates for insulation and HVAC upgrades and other projects which reduce energy use. The greater the energy savings, the greater the rebate. 

For households earning less than 80% of the area median income (AMI), the program will cover 80% of the costs (80% of AMI in Houston is about 75k). Projects reducing energy use between 20 and 35% are covered up to $4000 and projects reducing energy use by 35%+ are covered up to $8000.

For Texans earning more than 80% of the AMI, the program will cover 50% of the costs. Projects reducing energy use between 20 and 35% are covered up to $2000 and projects reducing energy use by 35%+ are covered up to $4000.

10% of this funding must go for energy projects at multifamily buildings, which can earn rebates up to $400,000.

Home Electrification and Appliance Rebates

The Home Electrification and Appliance Rebates program (which previously went by the acronym HEEHRA) provides discounts for “qualified electrification projects” such as heat pumps, induction stoves, or upgrades to wiring or breaker boxes. This program covers 100% of the cost of projects for households earning less than 80% AMI and 50% of the cost for households earning between 80 – 150% AMI (in Dallas, 150% of the AMI is about $150,000). You can earn rebates for multiple home upgrades, up to a max of $14,000. 

Texans can get rebates from both programs, but not for the same energy project (e.g. you can get a rebate for insulation from HOMES and a rebate for a heat pump from the Electrification and Appliance rebates, but not two rebates for a heat pump). 40% of funds from both programs must be distributed to Disadvantaged Communities.