DOE blocks gas-to-electric switch in $8B home rebate program

By Christa Marshall | 06/02/2026 06:54 AM EDT

Critics of the Energy Department guidance say it runs afoul of the Inflation Reduction Act’s emphasis on increasing appliance efficiency and cutting emissions.

Department of Energy headquarters in Washington

Department of Energy headquarters in Washington. Francis Chung/E&E News

The Department of Energy released guidance Monday that could boost natural gas use and shape funding slated for home energy upgrades across the country.

The rules cover energy efficiency rebates for low-income households supported by the 2022 Inflation Reduction Act, which allocated roughly $8.8 billion for the program. In the notice, DOE said rebates should no longer be used to switch from nonelectric appliances like gas furnaces to electric models like heat pumps.

“The Department of Energy has released common-sense revisions to program guidance to align requirements more closely with statutory requirements, advance affordability, ensure good stewardship of taxpayer dollars, and empower grantees to tailor their programs to local contexts and residents’ needs,” DOE said in a statement.

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But environmentalists slammed the move, saying it runs afoul of the law and would be disruptive for state officials. Language in the Biden-era climate law included provisions to switch from gas to electric.

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