Federal Energy Efficiency Savings Coming to Oregon in 2024
The Oregon Department of Energy has talked a lot this year about federal dollars coming to our state for energy projects and programs. Multiple programs over the next few years will support Oregon’s energy goals. Oregon has already been awarded an additional $5.7 million over the next five years under the existing State Energy Program, which supports energy security, clean energy, energy efficiency, resilience, and sustainable transportation work. Oregon was also awarded funds for grid resilience projects, including nearly $20 million for the first two years. As part of a collaborative effort including Oregon, the Pacific Northwest Hydrogen Association was selected as one of seven regional hydrogen hubs to enter award negotiations with the U.S. Department of Energy for up to $1 billion to develop clean hydrogen projects in the Pacific NW. Read more about our progress on ODOE’s website.
As we turn to 2024, ODOE looks forward to helping roll out even more programs to help Oregonians save energy at home. The 2022 Inflation Reduction Act invested dollars in Home Energy Rebates – a pair of programs that will help Oregonians make their homes more energy efficient by installing appliances and performing upgrades that will also help residents save money. These are known as the Home Efficiency Rebates (HOMES) and Home Electrification and Appliance Rebates (HEAR or HEEHR) programs.
The HOMES program will provide performance-based rebates for energy efficiency retrofits for individual households and multifamily buildings. These rebates are available for efficiency upgrades (or combinations of upgrades) with demonstrated energy savings of at least 20%, with higher incentives for projects with savings of 35%. Income-qualifying households could see a minimum of $2,000 if their home energy upgrades show a minimum of 20% energy savings. The lowest-income residents and homes that realize greater energy savings could see a higher rebate. Exact amounts will be determined in the program design.
The HEAR program will provide point-of-sale rebates to low-income (80% of Area Median Income and below) and moderate-income (between 80% and 150% of Area Median Income) households for the installation of high-efficiency electric appliances and associated electric upgrades, along with insulation and air sealing measures. Rebate amounts will vary depending on the exact technology installed. However, the rebates may vary between 50%-100% of the project cost (to a specified limit per technology) up to a maximum of $14,000 total for the lowest-income residents.
Although the exact number of households that could benefit from these funds is not yet clear, ODOE estimates that – assuming an average rebate size per project – about 13,000 Oregon households could benefit from these programs – or less than 1% of Oregon’s total housing stock. Because these programs primarily target low-income households, it is important that rebates cover a large portion of the up-front cost to ensure customers with limited resources can take advantage of these rebates. Larger incentives mean fewer households overall will receive funding under these programs, but it will ensure that those who receive rebates will have lower out-of-pocket costs.
The U.S. Department of Energy released its initial guidance for states to apply for these programs in July 2023 and issued updated materials in October 2023. Prior to the release of this guidance, ODOE was limited in the activities it could engage in to prepare for this work. Funding for the program will be available after ODOE has submitted its federal grant application, and subsequently reviewed and approved by the U.S. Department of Energy.
ODOE is well-positioned to design and implement these programs in an efficient manner, and the agency is working diligently to ensure the impact of the programs is maximized and stakeholders have the opportunity to provide input on program design.
We hope to be able to roll out the rebate programs mid-2024.
Additional Resources
Check out our Frequently Asked Questions for more on Home Energy Rebates, including eligibility information and some other programs that are available to Oregonians now.
Learn about other incentives ODOE currently offers.
Visit our website to learn more about federal funding opportunities.
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