Coming soon: big rebates for home energy upgrades

If you’re interested in energy-saving upgrades that will make your home healthier to live in and better for the environment, two programs rolling out later this year can help you pay for them. As part of the landmark Inflation Reduction Act, Wisconsin will soon receive $149 million divided about evenly between two rebate programs: The Home Efficiency Rebates program (HOMES) and the Home Electrification and Appliance Rebates program (HEAR). Pending Department of Energy approval, these programs will collectively offer up to $24,000 in rebates per eligible single-family household. Wisconsinites should expect these programs to begin sometime this summer. 

Any upgrades that help homes save energy, such as window upgrades or air sealing, are eligible for rebates through the HOMES program. HOMES will be available to owners of any home or multi-unit apartment building and will offer rebates based on the amount of modeled savings that a contractor determines for home upgrades, as well as the household’s annual income. The HOMES program will cover large costs of these upgrades, including up to 100% of costs for some projects in low-income, single-family homes. Owners who are not low-income are also eligible for these rebates. Notably, HOMES includes retroactive rebates, meaning even households that made home upgrades on or after August 16, 2022, can qualify for money.  

For the HEAR program, only low- and middle-income homeowners, and landlords of multi-family homes where the residents are low- and middle-income, can qualify for rebates. HEAR is for specific appliance upgrades, including heat pump water heaters, heat pumps for space heating/cooling, electric stoves (including induction stoves), electric wiring upgrades and upgrades to insulation, air sealing and ventilation. If a homeowner made all eligible upgrades, they could qualify for as much as $14,000 in rebates, including up to $8000 for heat pumps to heat and cool their home. Unlike HOMES, there is no retroactive eligibility for HEAR.  

The appliances eligible for upgrade rebates through HEAR were selected for this program based on their reliance on electricity instead of fossil fuels, and because of their improved efficiency. Household fossil fuel combustion significantly increases Wisconsin’s greenhouse gas emissions. Therefore, switching to efficient and electric heating/cooling systems and appliances is a critical step to reducing the state’s climate change impacts. Additionally, combustion appliances contribute to harmful indoor air pollution and the pollutants released from gas stoves can be particularly harmful to children.  

While Wisconsin works on making the electrical grid cleaner by implementing more renewable energy systems, there are particular types of households that will see more immediate health and environmental benefits from making these upgrades. Households that use inefficient electric resistance heating systems, have on-site solar panels or plan on making other significant efficiency or weatherization upgrades should consider upgrading to heat pumps for heating/cooling. A great strategy for eligible Wisconsinites is to participate in HOMES while also receiving rebates for heat pumps through HEAR. 

These programs will be administered by Focus on Energy, Wisconsin’s energy efficiency program. The rebates from these two programs cannot be combined for the same efficiency upgrade, however households can engage in both programs and “stack” the benefits of these programs with other incentives offered through Focus on Energy. Focus on Energy’s website (focusonenergy.com) provides more detailed information about both programs, and as soon as the programs begin, their website will provide Wisconsinites with resources to help them receive rebates. Stay tuned for more details about these exciting programs that will make home upgrades more affordable for thousands of Wisconsinites.