The Energy Department approved New York’s application under a signature program of Democrats’ climate law to help homeowners cut their energy costs and make their properties more energy efficient.
The approval announced Thursday — and an initial award of $158 million to the state — makes New York the first state to receive an application approval under the Inflation Reduction Act‘s home energy rebate program.
The department opened applications for the program last year, but it has faced pressure from Democratic lawmakers over the rollout. House Democrats argued delays in finalizing program guidance and distributing the funds mean states would not be able to offer rebates until more than two years after the Inflation Reduction Act’s enactment.
The law made $8.8 billion available for state energy offices and tribes to design and implement rebate programs for installing technologies like heat pumps or upgrading to electric appliances. The rebate programs are seen as some of the most significant consumer-facing components of the Inflation Reduction Act given that they allow low-income households that may be unable to take advantage of the law’s sprawling tax credits to upgrade to more efficient technologies.
