New appliance rebates coming to Pa., De., N.J. after last-minute Biden approval

Trump also started the process of withdrawing the U.S. from the Paris climate agreement Monday and ordered agency heads to review all regulations that restrict “consumer choice” of appliances. Experts have said Biden-era energy efficiency standards for appliances would be difficult for the new administration to reverse. 

While Biden’s expanded tax credits for home electrification and energy efficiency under the Inflation Reduction Act have disproportionately benefited wealthy households, the home energy rebate programs are expected to help low- to moderate-income households afford home improvements that will reduce their energy bills. In Philadelphia, Black, Hispanic and low-income residents spend more of their income on energy costs than households overall.

“These rebates are really important because they help working families in the United States access dollars that help lower the cost of these better, more efficient machines that are going to save them money on their energy bills,” said Ari Matusiak, CEO of Rewiring America, a national nonprofit that promotes electrification and related government rebates and tax credits.

States design their rebate programs within guidelines set by the U.S. Department of Energy under the Biden Administration, which require some of the money be reserved for families under certain income thresholds.

Pennsylvania, Delaware and New Jersey all plan to launch their rebate programs this year, with Pennsylvania aiming for rollout of some rebates in “early 2025.”

The three states plan to offer all types of rebates available under the federal program, including rebates for appliances, home electrification infrastructure and energy-saving home retrofits. Pennsylvania plans to restrict the energy-saving home retrofit rebates to multifamily housing.

Income eligibility requirements for some of the rebates will vary by state, but all three states plan to restrict appliance rebates to households earning no more than 150% of area median income.

It’s crucial that the rebates reach low-income neighborhoods with high rates of energy poverty, said Pamela Darville, a volunteer with POWER Interfaith who helps lead the organization’s climate justice and jobs team. She wants to see Pennsylvania do extensive outreach about the programs in these communities, make the application user-friendly and available in multiple languages, partner with community-based organizations to find eligible applicants, offer long-term maintenance assistance and ensure the rebates reduce costs up front, so there’s no need for families to wait to be reimbursed.

“Those are just some of the things that we think will lay the foundation for equitable rollout by the state,” Darville said. “We all want energy-efficient appliances, but some of us just can’t afford it.”