Could OH Lose a Big Energy Rebate Program?
We’re only days away from a new administration starting. And that could mean a delay or end to the Inflation Reduction Act (IRA). The IRA funds millions of dollars for energy efficiency programs for states that have already applied for them. So how will energy rebates help Ohio customers pay rising electricity rates? And could they see this Ohio energy rebate program vanish before it starts?
How Could This Rebate Program Help?
After the IRA became law, Ohio applied for nearly $250 million to help fund home energy efficiency programs. State lawmakers plan to fund two major home savings programs; HEEHRA and HOMES.
HEEHRA helps low and middle income households replace their appliances with energy-efficient models. Low-income families would get up to $14,000. Middle-income families would get half up to that.
For example, a new energy efficient refrigerator might cost you $200. But via the program, low income families could get all of that money back. They would enjoy lower bills because these fridges use nearly 10% less energy.
HOMES was designed to make it cheaper to electrify your home. That could include replacing your old heaters with a heat pump system. The rebate amount depends on your home’s new energy savings. Low and middle income families could get up to $8000 in rebates.
As you can see, both programs help offset the upfront cost for energy efficiency. You would cut your energy usage and lower your bills.
Why End Federal Energy Rebates?
The cost of the IRA has met with much criticism. For example, the clean energy and climate portions of IRA were estimated to cost $392 billion between 2022 and 2031. For that reason, some lawmakers have opposed IRA since it became law in 2022. Since then, President-elect Trump has vowed to end the IRA when he gets into office. However, it’s not yet clear how repealing the IRA will effect funding for energy rebates and tax credits.
Most states have applied for IRA funded rebates. At the present, only eleven states have received funds and launched their energy rebate programs. Many other states, like Ohio, are still waiting for federal approval. So if IRA ends, then homeowners may not get assistance with energy efficiency improvements. This makes it a lot harder for low and middle income families to cut energy usage.
Other Ohio Energy Rebate Programs
Fortunately, there are still programs to take advantage of. For instance, PUCO has approved a rebate program for smart thermostats for FirstEnergy utilities and AEP Ohio. While the rebates aren’t as large as HEEHRA or HOME, they could still help you cut costs.
You can count on us to keep an eye out for other ways to save energy. Don’t forget to shop for the best energy plans in OH right here at https://www.ohenergyratings.com.