Arkansas to receive $105 million for home energy-efficiency programs

The U.S. Department of Energy (DOE) will give Arkansas more than $105.17 million for energy efficiency programs as part of the nearly $9 billion made available from the Inflation Reduction Act.

According to a Wednesday (Nov. 2) news release, the money will be used for consumer home energy rebate programs to increase energy efficiency, upgrade electric appliances and cut energy costs. The DOE estimates that households will save up to $1 billion annually as a result of the programs.

Inflation Reduction Act programs include the installation of clean energy equipment, such as heat pumps, to lower energy costs, decrease dependence on fossil fuels and help meet President Joe Biden’s goals of weatherizing 2 million homes and cutting greenhouse gas emissions at least in half by the end of the decade, the release shows.

“As energy prices remain high, this Administration is working to cut costs for working families and businesses through historic investments for consumer rebates for more efficient home improvements and energy-efficient appliances nationwide,” said U.S. Secretary of Energy Jennifer Granholm. “President Biden’s agenda means states will have greater resources to meet their consumers’ needs and more rapidly achieve home electrification on the path to a net-zero emissions economy.”

Arkansas is expected to receive $52.73 million for the home energy performance-based, whole-house rebate program and $52.43 million for the high-efficiency electric home rebate program.

By spring 2023, the federal money is expected to be made available to states and tribes, after the DOE hosts a series of listening sessions on the programs and a request for information from the public. The rebates will be made available to the public later that year.

Following are details about the programs states will implement:

• Home energy performance-based, whole-house rebate program includes rebates from $2,000 to $4,000 for households and up to $400,000 for multifamily buildings.
• Grants to states for rebates for home retrofits, including up to $2,000 for retrofits reducing energy use by at least 20% and up to $4,000 for retrofits saving at least 35%.
• Maximum rebates double for retrofits of low- and moderate-income homes.
• High-efficiency electric home rebate program includes a $14,000 cap per household, with an $8,000 cap for heat pump costs, $1,750 for a heat pump water heater and $4,000 for panel/service upgrade.
• Other eligible rebates include electric stoves and clothes dryers and insulation and air sealing.