A new federal program launched in Wisconsin last week can help homeowners at all income levels save money on energy efficiency improvements.
Wisconsin was the first state in the country to be approved to administer both of the Home Energy Rebates programs, a nearly $9 billion pair of energy savings initiatives created by the Inflation Reduction Act of 2022, Gov. Tony Evers announced Friday.
Of the roughly $149 million allocated to Wisconsin for the two programs, $74.8 million is now available for whole-home improvements through the Home Efficiency Rebate, or HOMES, program. Another $74.5 million for appliance and equipment upgrades is expected to become available this fall through the Home Electrification and Appliance Rebate, or HEAR, program.
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They will be administered by Focus on Energy, Wisconsin’s statewide efficiency program.
The Wisconsin Public Service Commission decided last year to have Focus on Energy manage the program “because of this existing infrastructure and framework throughout the state that was successful at delivering very similar things already,” said Summer Strand, the commission’s chairperson. “We also were very careful to ensure that the existing Focus programs and money, etc., stayed separate.”
Focus on Energy now allows households to initiate the upgrade process. It will begin accepting rebate requests through the HOMES program by early September.
How to apply for the Home Efficiency Rebate
Wisconsin was the first state to launch the HOMES program, which offers rebates to homeowners and residential property owners for improvements like replacing heating and cooling equipment or increasing insulation.
The program is open to all state residents, no matter how much money they make. Maximum rebates range from $1,500 to $10,000 per household, depending on income level and expected savings. Rebates kick in when efficiency upgrades result in at least 20% energy savings. Households that earn less than 80% of the area median income and can reduce their energy use by at least 35% will be eligible for the largest rebates.
Multifamily buildings will be eligible for up to $10,000 in rebates per unit. They can qualify as low- or moderate-income — and tap into larger rebates — if at least 50% of occupied units meet those criteria.
To earn HOMES rebates, homeowners will need to verify their income through the Focus on Energy website, focusonenergy.com, then select a registered contractor from Focus on Energy’s list to conduct a home energy assessment. The contractor will work with the homeowner to determine the scope of the project, then make the upgrades and submit the rebate application.
The process is similar for owners of single-family rental properties but differs for multifamily buildings.
Wisconsin households that have made energy efficiency upgrades since Aug. 16, 2022, may be eligible for retroactive rebates if they can demonstrate that those upgrades met the program requirements.
How to apply for the Home Electrification and Appliance Rebate
A second program set to begin in Wisconsin in the next few months, HEAR, targets a wider range of energy-saving measures, from rewiring to installing electric appliances.
HEAR will only be available to single-family and multifamily households making no more than 150% of the area median income. The program will cover 100% of qualifying project costs up to $14,000 for households making under 80% of the area median income, and 50% of qualifying project costs up to $14,000 for eligible households above that threshold.
It will provide maximum rebates of $1,600 for insulation, air sealing and ventilation, $2,500 for electrical wiring, $4,000 for electrical panel improvements, $840 for electric stoves, cooktops, ranges, ovens and dryers, $1,750 for electric water heaters and $8,000 for heat pumps.
In most cases, homeowners will need to make these purchases through registered contractors or retailers in order to receive HEAR rebates, which will be available as up-front discounts.
New construction will be eligible for HEAR but not HOMES, Strand said. For upgrades that fall under both programs, such as insulation, households will be able to receive a rebate from one or the other, but not both.
Where to begin
Strand recommends starting with Focus on Energy’s Residential Rebate Finder, which can be found at focusonenergy.com/get-started.
“All you have to do is go to the tool, enter your address, whether you own or rent, the size of your family, your income level and your utility providers,” Strand said. “The search results create a menu of incentives, rebates and credits that are available to you, and then you can click on and go through each of those.”
In addition to the new federal programs, the tool includes other federal and state programs that users may be eligible for.
“That’s a really nice way to get that full menu of what’s available, so that you can kind of maximize the opportunities and the savings,” Strand said.
