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# Home energy rebates

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## Content

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## Quick takeaways

                  - There are $8.8 billion available for the  Home Energy Rebates program . This may give your business a boost if you:                     - Install energy-efficient appliances or 
                    - Provide home energy upgrades 
                  - If your small businesses sells a qualifying product to a homeowner, the homeowner is then eligible to apply for the rebate. Use this information to sell more of your services.
                  - Homeowners could receive up to 100% of the project costs back as a rebate.
                  - Home Energy Rebate programs are run by states and territories. The first programs will be online as soon as summer 2024. Other programs will launch through 2025.  See the status of your state’s program . 
                  - Need help with capital or counseling? Read about SBA’s business loan programs. You can also contact your  District Office  or a local  Resource Partner .

## About the Home Energy Rebates program

###         Background      

The Inflation Reduction Act was signed into law by President Biden in August 2022. The Act authorized rebates for new types of home improvements that reduce energy costs. These are part of the law’s historic $391 billion investment in tackling climate change. They position America’s Main Street small businesses at the forefront of this investment. They also present a generational opportunity for small businesses to grow. 

The U.S. Department of Energy estimates the rebates will save households up to $1 billion on energy bills each year. They will also support over 50,000 U.S. jobs. Rebates will begin rolling out to consumers in some states as soon as spring 2024.

###         What are the rebates?       

                        - The  Home Electrification and Appliance Rebates  program:                            - Customers receive up to $14,000 in rebates for buying or installing electrification equipment. Equipment must be installed in low to medium-income communities. 
                          - To receive a point-of-sale rebate, consumers will have to use an online portal. Portals will vary by state. 
                          - Consumers will use the portal to claim an eligibility voucher or coupon. 
                        - The  Home Efficiency Rebates  program:                            - Consumer rebates for projects that reduce energy consumption in single-family homes or multifamily buildings. 
                          - Rebate sizes may vary by household income and how much the energy upgrades reduce energy consumption.  

###         Why do these rebates matter for my small business?       

If you are a home repair or construction small business, these rebates can help you **grow** or **start** your business. Rebates reduce costs for your customers; since many more consumers will be able to afford upgrades,this leads to more customers to your business.

###         Is my small business eligible to participate?       

Any small business providing energy efficiency or electrification installation services is eligible. These include:
                        - Door and window installers
                        - Plumbers
                        - Electricians
                        - General contractors
                        - Heating and air 

Your business will need to be qualified as a contractor in your state. The process to become a qualified contractor may vary by state and may require industry-standard licensing and certification, proof of insurance, and other information. The National Association of Credit Management has a list of contractor licensing requirements by state.

###         Who and what is eligible?       

### Home Electrification and Appliance Rebates 

#### Who is eligible 

This rebate is only for:
                        - Low- or moderate-income households
                        - Individuals or entities that own a multifamily building where low- or moderate-income households are at least 50% of the residents
                        - Governmental, commercial, or nonprofit entities that are carrying out projects for low- or moderate-income households or multifamily building owners

Low-income households refer to those earning less than 80% of their area median income (AMI). Moderate income means a family representing up to 150% of an AMI. The Department of Housing and Urban Development reports AMI statistics across the United States.  Up to 100% of costs will be reimbursed for low-income families and up to 50% for moderate-income families.

#### What is eligible

Your state energy office decides eligible products and materials. Options include:
                        - Up to $8,000 for ENERGY STAR-certified electric heat pump for space heating and cooling                            - Up to $4,000 for electric load service center (i.e., electrical panel)
                          - Up to $2,500 for electrical wiring
                          - Up to $1,750 for ENERGY STAR-certified electric heat pump water heaters
                          - Up to $840 for ENERGY STAR-certified electric heat pump clothes dryer
                          - Up to $840 for ENERGY STAR-certified electric stove, cooktop, range, or oven
                          - Up to $1,600 for insulation, air sealing, and mechanical ventilation 

### Home Efficiency Rebates

#### Who is eligible

Households of all incomes are eligible. Lower-income households will get larger rebates. 

#### What is eligible

Relevant retrofits may include efficient windows, doors, and insulation materials. Your state energy office will determine which products and materials are eligible. Efficiency projects that produce at least 20% in predicted energy savings are eligible for rebates of up to $4,000. 35% in predicted energy savings are eligible for rebates of up to $8,000.

###         Key next steps for my small business      

                        - **Becoming an approved home energy contractor****— if your small business:**                             - Is already completing energy efficiency projects,  contact your state energy office  
                          - Needs training to be business-ready,  find information on energy efficiency training in your state .  
                        - **Learning the details of your state program**: Visit  DOE’s website  and click on your state to link to its energy office. 

For more information, see our How-To Guide for Home Energy Rebates.

## How SBA can help your business

If your business has working capital needs, SBA’s Lender Match tool can find lenders that may be interested in funding businesses like yours. SBA offers government-backed loan products that may fit your home energy-related business. 
                  - **If you need up to $500K in working capital:** The  SBA Express ** **program is a flexible revolving working capital line of credit under the 7(a) program. With SBA Express, a contractor can access revolving working capital to purchase equipment and fund recurring installation expenses. This could enable your small business to take on more clients, knowing that you have access to the working capital necessary to support them along the way.

Need general business counseling or have questions for our SBA staff? Find a District Office or Resource Partner near you. 

## Additional resources for your small business

Visit the Department of Energy Frequently Asked Questions (FAQ) sites:
                  - Home Energy Rebates Programs 
                  - Home Energy Rebates Frequently Asked Questions