Home Energy Rebate Programs

The Inflation Reduction Act (IRA) includes $8.8 billion for two residential energy efficiency and electrification rebate programs, the Home Energy Performance-Based Whole House Rebate (Home Efficiency Rebates) and the High-Efficiency Electric Home Rebate Program (Home Electrification and Appliance Rebates). These Programs will be administered by the U.S. Department of Energy (DOE) at the federal level and State Energy Offices at the state level (TDEC’s Office of Energy Programs functions as the State Energy Office for Tennessee).

 Funding for these programs is not yet available to State Energy Offices. On July 27, 2023, U.S. DOE released program guidance for States to apply for the Home Energy Rebate Programs funding. TDEC OEP is designing the programs in alignment with the U.S. DOE guidance and will prepare program applications to be submitted for U.S.  DOE’s review and approval.

Households looking for home energy retrofit assistance today cannot yet access these rebates but may be eligible for TVA EnergyRight Residential Energy Efficiency Rebates or currently active federal programs, including tax credits or the Weatherization Assistance Program.

TDEC OEP will host a public input session on May 3 at 1:00 PM Central to provide an update on the status of the Inflation Reduction Act’s Home Energy Rebate Programs and solicit community input. Interested stakeholders will have the opportunity to provide feedback at the end of the public input session or via a survey, which will be distributed following the event.  Find additional information about the event here. 

To learn more about how home energy efficiency and electrification rebates available through the Inflation Reduction Act can benefit your family, visit https://cleanenergy.gov.

Sign up here for the Tennessee Department of Environment and Conservation Office of Energy Program’s (TDEC OEP) email list for updates regarding the Inflation Reduction Act Rebate Programs, as well as our two monthly newsletters, which highlight timely news items, upcoming events, funding opportunities, and new resources regarding energy and energy in transportation.

Home Energy Performance-Based Whole House Rebate (Home Efficiency Rebates)

Tennessee’s allocation for the Home Efficiency Rebate Program is $83,877,940. Rebates for energy efficiency retrofits will range from $2,000-$8,000 for individual households and up to $400,000 for multifamily buildings based on both income qualification as well as the amount of energy saved. 

The State must reserve portions of its rebate program funding to serve low-income, single-family households and low-income, multifamily buildings; for Tennessee, the minimum amount that must be allocated for low-income, single-family households is $26,820,076, and the minimum amount that must be allocated for low-income, multifamily buildings is $6,710,235.

Eligibility:

Any household is eligible for Home Efficiency Rebates, and rebate amounts will be determined based on energy saved and income qualification.

Single Family Household:

Multifamily Household:

*To determine the applicable area median income (AMI), please visit the Housing and Urban Development Median Income Tool.

High-Efficiency Electric Home Rebate Program (Home Electrification and Appliance Rebates)

Tennessee’s allocation to administer the Home Electrification and Appliance Rebate Program is $83,390,060. Rebates for electric appliances are set by legislation and are specifically targeted to low-income households. 

The State must reserve portions of its rebate program funding to serve low-income, single-family households and low-income, multifamily buildings; for Tennessee, the minimum amount that must be allocated for low-income, single-family households is $26,664,075, and the minimum amount that must be allocated for low-income, multifamily buildings is $6,671,205.

Appliance purchases must be carried out as:

• part of a new construction project;
• to replace a non-electric appliance;
• or as a first-time purchase of a heat pump for space conditioning in an existing home that is installed to provide the primary heating and cooling for the household.

Eligibility:

The law specifies that Home Electrification and Appliance Rebates are available to (1) low- or moderate-income (LMI) households, (2) individuals or entities that own a multifamily building with low- or moderate-income households comprising at least 50% of the residents, and (3) governmental, commercial, or nonprofit entities that are carrying out projects for low- or moderate-income households or multifamily building owners.

A low- or moderate-income household is one where an individual or family has a total annual income less than 150% of the median income of the area where the individual or family resides. For households with a total annual income below 80% of the area median income (AMI), rebates can cover a higher percentage of the total project costs.

Rebate Limitations:

*To determine the applicable area median income (AMI), please visit the Housing and Urban Development Median Income Tool.

There is a maximum rebate of $14,000 per building, with percentage caps varying by income and building type.