PORTLAND, MAINE- As part of President Biden’s Investing in America agenda(link is external), the U.S. Department of Energy (DOE) announced today that Maine has launched its first federal Home Energy Rebates program, supported by the Inflation Reduction Act. Maine is launching the Home Electrification and Appliance Rebates (HEAR) portion of the rebate program-enabling savings on energy efficiency improvements.
Maine’s launch is part of the Biden-Harris Administration’s nationwide initiative to provide $8.8 billion in Federal funding for states, territories, and Tribes to lower energy costs and increase efficiency in American homes by making it cheaper to install cost-saving measures such as heat pumps, electrical panels, and insulation, which helps save money on housing costs. These energy-saving measures will save American households up to $1 billion annually in energy costs and support an estimated 50,000 U.S. jobs in residential construction, manufacturing, and other sectors. These investments also advance the President’s Justice40 Initiative(link is external), which sets a goal that 40% of the overall benefits of certain federal climate, clean energy, affordable and sustainable housing, and other investments flow to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution.
“Maine has been a national leader in providing its residents with rebates to upgrade home heating and cooling systems to energy-efficient heat pumps,” said U.S. Secretary of Energy Jennifer M. Granholm. “DOE is proud to provide this funding through the Inflation Reduction Act to give even more Mainers opportunities to enjoy an energy efficient home.”
“Home energy rebates for clean and energy-efficient appliances and upgrades are good for the planet because they help cut pollution, but more importantly, they are good for Mainers because they will save money by lowering energy bills,” said John Podesta, Senior Advisor to the President for International Climate Policy. “Congratulations to Maine for making these game-changing Inflation Reduction Act incentives available to their residents.”
“Our transition to heat pumps is creating good-paying jobs, curbing our reliance on fossil fuels, and cutting costs for Maine families, all while making them more comfortable in their homes – a hat trick for our state,” said Maine Governor Janet Mills. “We are setting an example for the nation, and with this new Federal funding through the Biden-Harris Inflation Reduction Act, more Maine people will be able to take advantage efficient, climate-friendly heat pumps that strengthen our economy, protect our environment, and save money.”
“Maine people are all too familiar with bitter cold temperatures, which is why heat pumps are an incredibly important tool to help efficiently and affordably heat and cool homes,” said U.S. Senator Angus King. “With winter right around the corner, this $36 million grant, funded through the Inflation Reduction Act, is an investment in reliable, clean energy solutions that will keep folks warm and won’t break the bank. The Home Energy Rebate Program will cement Maine’s commitment to being a leader in the clean energy space.”
“Maine’s leadership in energy efficiency is paving the way for a more sustainable and affordable future, and the launch of Maine’s Home Energy Rebate Program is a major step forward in making energy-efficient technology accessible to all Mainers, especially those in underserved communities,” said U.S. Representative Chellie Pingree (ME-01). “Made possible by the landmark Inflation Reduction Act, this federal funding will help Maine families lower their energy bills and reduce their carbon footprint while creating good-paying, clean energy jobs. I’m proud to support this initiative, which will make our homes greener, our economy stronger, and our communities healthier for generations to come.”
Many Americans spend a large portion of their monthly income to heat, cool and power their homes. To advance the objectives of the rebate programs, DOE is requiring states and territories to allocate at least half of the rebates to low-income households, defined as those earning 80% or less of their area median income, which is expected to benefit many households in disadvantaged communities. States and territories must also submit Community Benefits Plans to ensure good jobs and other economic opportunities are available. To help keep consumers informed and equipped with resources, DOE recently released a Consumer Bill of Rights framework and is encouraging state, territorial and Tribal rebates programs to adopt it.
Maine’s Home Energy Rebate Programs
Maine’s HEAR program – one of two Federal Home Energy Rebate programs – will be overseen by the Maine Governor’s Energy Office (link is external)and implemented by Efficiency Maine(link is external). Efficiency Maine already offers a robust set of incentives on heat pumps and other upgrades. For that reason, the state is using its HEAR funds to address targeted areas of need. Efficiency Maine is launching its HEAR program in two stages.
Available now: Efficiency Maine will use HEAR funding to offer rebates to:
- Low-income owners of manufactured homes (i.e., household income below 80% of area median income).
- Affordable multifamily new construction projects.
Eligible owners of manufactured homes could save as much as $14,000 thanks to HEAR funding, including up to:
- $8,000 for a whole-home heat pump for space heating and cooling.
- $4,000 for an electrical panel.
- $2,500 for electrical wiring.
These homeowners can visit the Efficiency Maine website and complete an eligibility screening.
Multifamily new construction projects of 24 dwelling units or more can get up to an $8,000 rebate per dwelling unit for heat pumps. To qualify, at least 50 percent of the building’s dwelling units would need to be occupied by low-income households. Property owners and developers can visit the Efficiency Maine website(link is external) to learn more.
Available later: After the first year, Maine plans to expand the manufactured home incentives to also include eligibility for moderate-income owners (i.e., households earning between 80-150% of area median income). Smaller new construction multifamily projects will also be able to apply for rebates.
Other Mainers interested in rebates on heat pumps, insulation, and other upgrades can visit the Efficiency Maine website to apply for existing programs.
“This funding will enable Maine to continue our progress on heat pump deployment, reducing household energy bills, creating good jobs, and supporting local businesses all while cutting greenhouse gas emissions,” said Dan Burgess, Director of the Governor’s Energy Office. “This grant from the Inflation Reduction Act will ensure Maine can meet our ambitious target of 275,000 heat pumps installed by 2027. I look forward to continuing this work and thank Secretary Granholm and the U.S. DOE for their support.”
There is a second Home Energy Rebates program that Maine will launch later. Under the Home Efficiency Rebates program, existing multifamily buildings can save money on retrofit measures that reduce whole-building energy consumption.
Maine is the most heating oil-dependent state in the nation, with over 56 percent of households reliant on home heating oil as their primary source of home heating compared to only 4 percent nationally. According to the most recent five-year data, Maine has seen a 10 percent decrease in heating oil as a primary fuel for home heating, which coincides with nation-leading heat pump adoption.