Maine has now launched a $36 million Home Energy Rebate Program funded by federal tax dollars allocated by the Inflation Reduction Act of 2022 and designed to help owners of manufactured homes and multifamily buildings to pursue energy-efficient options.
According to the United States Department of Energy (DOE), the Inflation Reduction Act (IRA) made “the single largest investment in climate and energy in American history, enabling America to tackle the climate crisis, advancing environmental justice, securing America’s position as a world leader in domestic clean energy manufacturing.”
The state’s new Home Energy Rebate Program is intended to “help eligible households save money on energy bills, upgrade to clean energy equipment, improve energy efficiency in their homes, and reduce air pollution.”
The program will be administered by Efficiency Maine and is intended to “complement” existing programs for households of various income levels.
This $36 million initiative represents half of Maine’s $72 million allocation from IRA, the remainder of which will be used to launch a separate program that is expected to be available for Mainers in early 2025.
Under the program, eligible low-income manufactured homeowners will be able to receive up to $14,000 worth of rebates, including $8,000 for a whole-home heat pump, $4,000 for an electrical panel, and $2,500 for electrical wiring.
Multifamily new construction projects may receive up to $8,000 per unit for heat pump installations provided that at least half the units are occupied by low-income households.
After the first year, the state plans to expand the rebates for manufactured homeowners to include moderate-income households and smaller multi-unit construction projects.
“Our transition to heat pumps is creating good-paying jobs, curbing our reliance on fossil fuels, and cutting costs for Maine families, all while making them more comfortable in their homes — a hat trick for our state,” said Gov. Janet Mills (D). “We are setting an example for the nation, and with this new Federal funding through the Biden-Harris Inflation Reduction Act, more Maine people will be able to take advantage of efficient, climate-friendly heat pumps that strengthen our economy, protect our environment, and save money.”
“Maine has been a leader in providing its residents with rebates to upgrade home heating and cooling systems to energy-efficient heat pumps,” said U.S. Secretary of Energy Jennifer M. Granholm. “DOE is proud to provide this funding through the Inflation Reduction Act to give even more Mainers opportunities to enjoy the benefits of energy-efficiency improvements.”
“Maine people are all too familiar with bitter cold temperatures, which is why heat pumps are an incredibly important tool to help efficiently and affordably heat and cool homes,” said Sen. Angus King (I). “With winter right around the corner, this $36 million grant, funded through the Inflation Reduction Act, is an investment in reliable, clean energy solutions that will keep folks warm and won’t break the bank. The Home Energy Rebate Program will cement Maine’s commitment to being a leader in the clean energy space.”
“Maine’s leadership in energy efficiency is paving the way for a more sustainable and affordable future, and the launch of Maine’s Home Energy Rebate Program is a major step forward in making energy-efficient technology accessible to all Mainers, especially those in underserved communities,” said Rep. Chellie Pingree (D). “Made possible by the landmark Inflation Reduction Act passed by Congressional Democrats, this federal funding will help Maine families lower their energy bills and reduce their carbon footprint while creating good-paying, clean energy jobs. I’m proud to support this initiative, which will make our homes greener, our economy stronger, and our communities healthier for generations to come.”
Click Here to Read Gov. Mills’ Full Press Release
Increasing heat pump adoption throughout the state has been a longtime focus of the Mills Administration.
Last summer, Gov. Mills celebrated that Maine had met her administration’s goal of installing 100,000 heat pumps in the state two years ahead of schedule.
In light of this, Mills set an updated benchmark of having an additional 175,000 heat pumps installed in the state by 2027.
A few months later, the United States Climate Alliance — of which Mills is a co-chair — announced a new commitment to increasing heat pump usage nationwide four-fold by 2030, reaching a total of 20 million heat pump installations by the end of the decade, with “40% of the benefits flow[ing] to disadvantaged communities.”
In February, Mills announced alongside several others that Maine had been awarded $10 million in federal funding to subsidize the installation of heat pumps in mobile and manufactured homes throughout the state.
[RELATED: Maine Pols Tout $10M in Tax Dollars to Subsidize Heat Pumps]
With this funding, Maine plans to install approximately 675 heat pumps in manufactured and mobile homes owned by low-income residents living in towns with populations less than 10,000.
This July, it was announced that Maine is expected to receive between $45 million and $72 million in federal funding to “accelerate the adoption of heat pump technology” in homes across the state.
Five New England states — including Maine, Connecticut, Massachusetts, New Hampshire, and Rhode Island — were given a combined total of $450 million in federal funding for the joint New England Heat Pump Accelerator project.
The New England Heat Pump Accelerator project aims to “leverage the power of a multi-state market to rapidly accelerate the adoption” of various heat pump technologies in single-family homes and other residential buildings in the region.
The goal of this project is to install nearly 580,000 heat pumps throughout New England, covering 65 percent of “residential-scale” heating and cooling sales by 2030 and 90 percent by 2040.
