The U.S. Department of Energy (DOE) has allocated nearly $72 million to support home energy rebates for income-eligible households in Maine, funded by the federal Inflation Reduction Act (IRA). These rebates are limited to residential efficiency upgrades and prioritize low-income households. More details about Maine’s IRA-funded rebate programs are included in the 2-page summary below, updated September 2024:
Download the 2-page PDF summary of the programs by clicking here.
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Program Eligibility
Efficiency Maine will administer the IRA-funded rebates alongside its existing incentives. More information is available on Efficiency Maine’s website. If you have questions about rebate eligibility or other details, please contact Efficiency Maine at (866) 376-2463.
Program Background
On August 16, 2022, President Biden signed the landmark Inflation Reduction Act (IRA) into law. The law includes $391 billion to support clean energy and address climate change, including $8.8 billion in rebates nationally for home energy efficiency and electrification projects.
The Home Energy Rebates program will help American households save money on energy bills, upgrade to clean energy equipment, improve energy efficiency in their homes and reduce indoor and outdoor air pollution. The U.S. Department of Energy (DOE) estimates that in total, these rebates will save American households up to $1 billion on energy bills annually and support over 50,000 jobs.
The Home Energy Rebates program is made up of two distinct programs: Home Efficiency Rebates (HER) and Home Electrification and Appliance Rebates (HEAR). Of the $8.8B in total funding, the Maine Governor’s Energy Office (GEO) will receive at least $71.7 million in formula funds for HER ($35.9 million) and HEAR ($35.7 million). Both programs will be limited to funding energy upgrades on residential buildings.
The HER program will focus on qualifying energy efficiency upgrades that achieve minimum energy savings thresholds set by the federal government. The HEAR program will promote qualifying electrification measures. Consistent with DOE program guidance, at least 40 percent of program benefits will be directed to disadvantaged communities.
Separate provisions of the IRA expanded federal tax credits to support home efficiency upgrades and the adoption of certain efficient appliances and vehicles. Those updates to tax credits have already taken effect.
Maine's Application
Maine’s application to DOE for home energy rebate funding is the product of extensive public engagement facilitated by GEO, Efficiency Maine, and MaineHousing, and reflects input received through this process as well as the goals outlined in Maine Won’t Wait. In January 2024, GEO, Efficiency Maine, and MaineHousing hosted a public meeting in person and via Zoom to present a draft proposal and solicit stakeholder feedback. Meeting slides are available to view and download here.