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).

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.

NOTE: Replacement of an existing electric heat pump, even with a more efficient electric heat pump is not eligible for a rebate, per the DOE guidance

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.