Tennessee is one of 26 states and U.S. territories to apply for full program funding — totaling a combined $3.6 billion so far — as of Aug. 23. Fifty-one out of 56 states and territories have indicated they are building rebate programs, and nine have had at least part of their funding request approved. South Dakota is not participating in the Home Energy Rebates program, according to DOE.
What Tennessee’s Home Energy Rebate program could look like
The program features two types of rebates: Home Efficiency Rebates based on whole-house energy savings through efficiency upgrades, and Home Electrification and Appliance Rebates for the purchase of new, energy-efficient electric appliances for low-income households.
The U.S. DOE has set aside a little over $83 million for each program, requiring them to reserve around $27 million of it for low-income, single-family households, and another $7 million for low-income, multifamily buildings.
For the Home Efficiency Rebate program, rebate amounts will be based on how much energy savings a household achieves through its upgrades, and the household’s yearly income.
A low-income, single-family household with an expected energy savings of 35 percent or more can receive up to $8,000, or 80 percent of their project’s cost, whichever is lower. Households that make more than 80 percent of an area’s median income can receive the lesser of 50 percent of the project cost or $4,000 for the same energy savings benchmark. Multifamily buildings have separate sets of requirements.
To qualify for the Home Electrification and Appliance rebates, home and building owners must replace a non-electric appliance, be part of new construction or be a first-time purchase of a heat pump for primary heating and cooling. Eligible appliances could include heat pump water heaters, heat pumps for space heating and cooling, electrical load service center upgrades, electrical wiring and insulation, air sealing and ventilation.
Single-family households making less than 80 percent of area median income (AMI) can receive up to 100 percent of the cost of a qualified project. Households making between 80 percent and 150 percent AMI can receive up to 50 percent. The maximum rebate per building is $14,000.
Tennessee would partner with TVA
States are allowed to use up to 20 percent of the funds they receive toward administration costs, but Tennessee has opted to limit their administrative reserve to 15%, making about $8 million more available for rebates.
To do this, Tennessee would contract with TVA to implement the rebate programs through the power giant’s processes for existing rebate programs and its network of partnering contractors. TVA would bear its program’s implementation costs and the administrative costs of a to-be-contracted third party implementer.
Home Energy Rebate projects would be completed exclusively by about 200 Tennessee contractors who are members of TVA’s Quality Contractor Network.