Home Energy Rebates

Multifamily rebate incentives

By Niki Kolisch on Sep 17, 2024 in Energy

If you’re wondering how you can get started with energy rebates, you’ve come to the right place. These incentives provide upfront savings while saving you thousands on utility costs for years to come. For example, switching from baseboard heating to a heat pump saves an average of $1,300 per year.

These rebates are not just about saving money — they also create more sustainable communities while improving living conditions for low-income and disadvantaged communities. Budget season is an opportune moment to review outstanding repairs and strategize on how communities can leverage direct savings effectively. Keep reading so you’re ready to act when the time comes.

The Inflation Reduction Act in a nutshell

In 2022 President Joe Biden signed the Inflation Reduction Act into law, dedicating nearly $400 billion to fund clean energy and address climate issues. From this, $8.8 billion will go to Home Energy rebates, including the Home Efficiency Rebates and Home Electrification and Appliance Rebates.

States are encouraged to dedicate up to 10% of rebate funding, with a $400K cap, to support upgrades in low-income, multifamily buildings.

The Home Efficiency Rebates Program (Section 50121)

Section 50121 awards rebates for energy efficiency improvements in residential buildings. This program is about incentivizing property managers and homeowners to make energy-saving improvements, rather than requiring full renovations and complete overhauls. By targeting improvements, such as HVAC systems, the program aims to reduce our energy consumption and utility bills.

Here’s what you need to know:

• Eligibility: Rebates are available for energy-saving measures, such as insulation, air sealing and high-efficiency HVAC systems.
• Benefits for multifamily property owners: Owners can receive rebates for upgrades that reduce energy consumption — leading to lower utility bills and improved tenant satisfaction.
• Funding allocation: States are required to allocate a portion of the rebate funds to low-income multifamily households, ensuring broader access to energy efficiency improvements.

Home Electrification and Appliance Rebates (Section 50122)

Section 50122 offers rebates for qualified electrification projects for low- or moderate-income households. Electrification is crucial for transitioning homes away from carbon-powered energy. By offering rebates for qualified projects, this program encourages property managers to adopt more efficient technologies that reduce carbon footprints and improve indoor air quality.

Here’s what you need to know:

• Eligibility: Includes rebates for electric stoves, heat pumps, water heaters and other energy-efficient appliances.
• Benefits for multifamily property owners: Provides direct incentives, including point-of- sales rebates of up to 100% for properties serving residents with an area median income (AMI) of 80% or lower. A portion of funds is specifically reserved for underserved communities. By upgrading to modern energy-efficient appliances, property owners can reduce utility costs and increase energy efficiency.
• Funding allocation: Encourages the adoption of electric appliances, contributing to the overall reduction of carbon emissions from residential buildings.
• Community benefit: Contributes to combatting climate change while delivering long-term savings. Electric appliances offer smart features that enhance convenience and allow users to optimize energy consumption.

What does it all mean for property managers and the community?

These forward-thinking incentives save costs for property managers while reducing our reliance on fossil fuels. Not to mention, updated and efficient appliances mean happier tenants. It’s a win for you, the environment and your residents.

Now, let’s assess some of the key takeaways:

• Financial incentives: Rebates offset the cost of energy efficiency and electrification upgrades.

• Pass-through benefits: Property owners who receive rebates for energy efficiency and electrification improvements must pass the savings on to renters, meaning they can benefit without facing rent increases.

• Targeted assistance for low-income households: A significant portion of the rebate funds are allocated specifically for low-income households. This ensures that the most vulnerable have access to energy-efficient and electrified homes.

• Tenant notification and consent: Property owners may be required to notify tenants about planned improvements and obtain their consent, particularly when the upgrades involve entering rental units. This ensures transparency and respect for renters’ rights and privacy.

• Affordability: Programs often include provisions to help keep units affordable, preventing displacement and ensuring current tenants benefit from upgrades.

• Retroactive rebates: Projects that started on or after Aug. 16, 2022, under IRA Section 50121, may qualify for state-issued retroactive rebates. To be eligible, these rebate requests must meet U.S. Department of Energy (DOE) requirements and additional state-specific requirements. However, retroactive rebates are not available for Home Electrification and Appliance Rebates (HEAR) due to federal law. Please visit this website for more details.

How to get started

The first step is to see if your state is approved and whether rebates are available. Head over to energy.gov/save/rebates for more information on the status of funding.

Keep in mind, many states are currently in the DOE approval phase for these energy rebate programs. But you can still get involved early even though the program hasn’t officially launched!  

You’re also able to stack various funding incentives to aid with equipment and repairs of your units and buildings all within the same home retrofit program. For instance, you could use a Home Electrification Rebate for an electric stove replacement and a Home Efficiency Rebate for installation of ENERGY STAR windows and get potential tax incentives for any costs the rebates may not cover. 

Stakeholder engagement is critical during this time, as your input can influence how funding is disbursed in your area. Even better, some states are hosting stakeholder meetings and are requesting insights from property managers. Be sure to check your state’s energy website for more information. 

Our involvement

In April, Yardi launched Energy Relief — a platform for managing energy rebate programs that deliver financial assistance to beneficiaries. Energy Relief is built for state agencies that are administering Home Energy Rebates and Home Electrification and Appliance Rebates.

By choosing Energy Relief, you can save time thanks to its seamless integration with Yardi’s suite of products, which streamlines qualification and processing tasks.

Highlights of Energy Relief

With Energy Relief you get everything you need from one platform, such as:

• Integrated application portals
• Contractor management
• Stackable incentive monitoring
• Payment processing
• Procurement platforms
• Built in APIs with PNNL (Pacific Northwest National Laboratories) and other national laboratories, HUD, IRS and more
• Energy measuring and metering capabilities

Please visit info.yardi.com/energy-relief for more information or to get in touch with a representative.

Sources:

1. https://carbonswitch.com/heat-pump-savings/