According to Newsweek, Tennessee could soon secure $167 million in federal funding for residents to use as home energy rebates, potentially starting by mid-2025. These rebates are part of the Inflation Reduction Act, which has allocated $8 billion for various energy efficiency programs across the nation.
In Tennessee, the state plans to distribute these rebates beginning in the spring of 2025 to residents who make eligible energy efficiency upgrades in their homes. Meanwhile, states like New York and Wisconsin have already begun rolling out their rebate programs this month.
The Inflation Reduction Act’s home energy rebates are expected to benefit roughly 1 to 2 percent of American households. Tennessee recently submitted its application to the U.S. Department of Energy (DOE) for this funding and will finalize the timing of its rebate distribution after closing a contract with the Tennessee Valley Authority (TVA).
According to finance expert Michael Ryan, who is also the founder of michaelryanmoney.com, the rollout of these rebates varies significantly across states. He noted that New York is leading the way by offering rebates of up to $14,000.
For Tennesseans, there will be two main types of rebates available: a home efficiency rebate and a home electrification and appliance rebate. The home efficiency rebate will be determined by the energy savings generated by upgrades and the household’s annual income. Low-income single-family homes that achieve energy savings of 35 percent or more could receive up to $8,000 or 80 percent of the upgrade cost. Those earning more than 80 percent of the area median income would be eligible for $4,000 or 50 percent of the cost, whichever is lower.
The home electrification and appliance rebate is intended for low-income households that replace non-electric appliances or purchase a heat pump for the first time. Eligible replacements could include water heaters, space heating and cooling heat pumps, electrical wiring, insulation, air sealing, ventilation, and more. Single-family households making less than 80 percent of the area median income could receive a rebate covering the entire cost of their purchase, while those earning between 80 and 150 percent could receive up to 50 percent. The maximum rebate amount is set at $14,000.
Ryan emphasized that these rebates could lead to significant savings for families over time, especially as more energy-efficient appliances reduce energy consumption. He estimated that the potential annual savings could reach $1 billion across the country.
Ryan also advised Americans not to wait for their state programs to be fully implemented before taking action. He recommended that homeowners begin researching and planning for energy-efficient upgrades now and start budgeting for the upfront investment, even with the rebates in mind.
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