On August 16, 2022, the federal Inflation Reduction Act (IRA) was signed into law. The IRA includes $8.8 billion in funding for consumer home energy rebate programs that will be administered by individual states. South Carolina expects to receive over $137 million of these funds, which will be split into two programs: 1) Home Energy Performance Based, Whole House Rebates (HOMES Efficiency Rebates or HOMES) and 2) Home Electrification and Appliance Rebates (HEAR Electrification Rebates or HEAR).
Rebates are not currently available in South Carolina. More information on these programs is available on the US Department of Energy’s (DOE) website.
HOMES Efficiency Rebates
It is projected that South Carolina may receive over $68 million in funding to develop and implement the HOMES Efficiency Rebates program. The program will provide rebates for energy efficiency retrofits ranging from $2,000 - $4,000 for individual households and up to $400,000 for multi-family buildings. Rebate amounts may depend on the amount of energy savings achieved by the retrofits, and maximum rebate amounts may double for retrofits of low- and moderate-income homes.
HEAR Electrification Rebates
It is projected that South Carolina may receive over $68 million in funding to develop and implement the HEAR Electrification Rebates program. The program will provide rebates on a percentage of the cost for some electrification and appliance efficiency projects available for low- to moderate-income households. The program will include a $14,000 rebate cap per household with additional caps on individual equipment types.
FAQ
When will the HOMES and HEAR Rebates become available?
HOMES and HEAR Rebates are not expected to be available in South Carolina before 2025. The Inflation Reduction Act of 2022 allocated funding to the DOE for several new programs. These programs require extensive planning prior to implementation.
In March 2023, the DOE offered all states an opportunity to apply for a small portion of Early Administrative Funding. The DOE approved South Carolina’s applications for Early Administrative Funds for the HOMES Rebate and the HEAR Rebate on January 29, 2024, and February 1, 2024, respectively. The SC Energy Office (SCEO) will use these Early Administrative Funds to plan and develop HOMES and HEAR Rebate Programs for South Carolina. The SCEO will then submit applications to the DOE for rebate program funding awards.
While the HOMES and HEAR Rebates are not yet available, consumers may be eligible for other federal programs including tax credits and the Weatherization Assistance Program, as well as other state, local, and utility programs.
What equipment types are eligible for HOMES and HEAR Rebates?
HOMES and HEAR Rebates may apply to the installation of the following energy-saving technologies and measures:
- Electric heat pump clothes dryers
- Electric heat pumps for space heating and cooling*
- Electric heat pump water heaters
- Electric panel and wiring upgrades
- Electric stoves, cooktops, ranges, and ovens
- Air sealing
- Duct sealing
- Insulation
- Materials to improve ventilation
- Potentially other energy-saving technologies
*Replacement of an existing heat pump, even with a more efficient electric heat pump, is not eligible for a rebate, per the DOE guidance.
What types of buildings may qualify for HOMES and HEAR Rebates?
HOMES and HEAR Rebates may apply to the following types of buildings:
- Single-family homes
- Multi-family residential buildings
- Newly constructed homes
- Rental properties
How much in HOMES and HEAR Rebate funding may be available?
HOMES and HEAR Rebate amounts may vary based on the energy savings of the implemented retrofit(s), the cost of the retrofit(s), the median income in your area, and your household’s income. More specifics on the South Carolina HOMES and HEAR Rebates will be provided when the programs are developed. Visit DOE’s website for general details on these programs.
Can I make a home upgrade now and still receive a HOMES and HEAR Rebate when funding is made available?
Until South Carolina establishes the specific requirements for the HOMES and HEAR Rebates, there is no guarantee which activities may qualify for a rebate, including those activities completed prior the development of the HOMES and HEAR Rebate program specifications. Rebates for certain retrofits may be available retroactively for the HOMES Rebate, but not for the HEAR Rebates.
Where can I get more information?
The DOE established the Home Energy Rebate Programs State and Local Solution Center to provide information on the IRA-funded rebate programs. As the programs are developed, consumers can expect to see more information shared there.
For the latest information on the application status of individual states and territories, please visit Home Energy Rebates Program: Status of State Applications.