One State Could Earn $167 Million in Home Energy Rebates for Residents

Tennessee could earn $167 million for residents to use as home energy rebates as early as the middle of next year.
The federal government approved a range a of home energy rebates in the Inflation Reduction Act and has slowly started sending out the $8 billion designated for the programs.
In Tennessee, the state is going to start sending out rebates in spring 2025 to residents who make the eligible energy efficiency upgrades in their homes.
New York and Wisconsin have both started rolling out their rebates this month.
Courtesy of the Inflation Reduction Act home energy rebates, roughly 1 to 2 percent of American households are set to benefit.
Tennessee completed its application to the U.S. Department of Energy (DOE) for the funding this month but will be able to finalize the timing of the rebates after closing its contract with the Tennessee Valley Authority (TVA).
Newsweek reached out to the Tennessee state government office for comment via online contact form.
So far, 25 other states have applied for the rebate money, and nine have had some part of their funding applications approved.
“The rollout of these rebates is like watching a race where some states have sprinted ahead while others are still tying their shoelaces,” Michael Ryan, a finance expert and the founder of michaelryanmoney.com, previously told Newsweek. “New York has taken the lead, offering up to $14,000 in rebates.”
For Tennesseans, a home efficiency rebate will be available for energy savings on upgrades while another home electrification and appliance rebate is there for low-income households that buy a new energy-efficient appliance.
For the home efficiency rebate, the amount you receive will be based on the specific amount of energy savings you get for your home from the upgrade you made as well as your annual household income.
Low-income single-family homes who save 35 percent or more in energy could earn up to $8,000 or 80 percent of the upgrade cost. But those who make more than 80 percent of an area’s median income would get $4,000 or 50 percent of their upgrade’s cost, whichever is lower.
Those hoping to score the home electrification and appliance rebate need to replace a non-electric appliance or purchase a heat pump for the first time. The other replacements could include water heaters, heat pumps for space heating and cooling, electrical wiring and insulation, air sealing, ventilation and more.
If you’re a single-family household making less than 80 percent of the area median income, you can earn the entire cost of your purchase, with those making between 80 and 150 percent getting up to 50 percent. The maximum rebate was set at $14,000.
Ryan said for the average family, the rebates could amount to some significant savings over time, especially as the higher efficiency appliances use less energy over time.
“They’re not just about saving a few bucks. We’re talking potential annual savings of $1 billion across the country,” he said “That’s real money staying in people’s pockets.”
Ryan urged Americans to start looking at what potential upgrades or appliances would be helpful for their home for when the rebates get implemented nationwide.
“Don’t wait for your state to catch up,” he added. “Start planning now. Research energy-efficient upgrades that make sense for your home. And most importantly, start budgeting. Even with rebates, these upgrades require an upfront investment.”