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Energy Rebates

Home Energy Rebate Programs 

The Inflation Reduction Act (IRA), a federal law established in 2022, authorizes the US Dept. of Energy (USDOE) to administer the Home Energy Rebate Programs. Under this law, USDOE allocated $263 million in funding to the Illinois EPA Office of Energy to administer two programs: the Home Efficiency Rebates (Section 50121) and the Home Electrification and Appliance Rebates (Section 50122).

Listserv Registration for Illinois Home Energy Rebate Updates

To receive updates for the IRA rebate program administered by Illinois EPA Office of Energy, signup using our Energy Rebates Listserv signup. Once you enter your information below, you will receive an email with a link to confirm your signup.

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Initially Illinois plans to allocate 100% of rebate funds to low-income households (i.e., households with less than 80% of the area median income (AMI)). Illinois may modify the program based on performance and overall interest to ensure the funds are distributed effectively and equitably among eligible households and buildings. Illinois plans to allocate a minimum of 10% of rebate funds to low-income multifamily buildings but is likely to exceed this percentage. 

*Illinois does not intend to offer retroactive rebates through the IRA Home Energy Rebate Program; only program-approved projects will be eligible for rebates following the program's launch.*

Program Updates

At this time, funding for the two residential programs has not yet been processed by or provided to Illinois EPA for administration or distribution. Illinois’ application status for funding can be tracked on the Status of State Application webpage. Illinois applied for early administrative funding on May 30, 2024. 

On June 17, 2024, USDOE Office of State and Community Energy Programs released an updated Program Requirements and Application Instructions Document for the Home Energy Rebate Programs, Sections 50121 and 50122. The updates include:

  • An exception is provided for cases where ENERGY STAR-certified products are unavailable for multifamily buildings (Section 50122).
  • Specified that only one appliance per category is allowed (Section 50122).
  • Clarified that duct sealing and insulation are eligible Qualified Energy Property (QEP) improvements (Section 50121).
  • Reduced the scope of home assessment requirements and included references to the Data & Tools Requirements Guide (Section 50121 & 50122).
  • Modified the self-attestation income verification process from 50% post-issuance to 100% pre-issuance, except for emergency replacements (Section 50122).

Additional updates to the USDOE program requirements and details specific to Illinois EPA's administration of the rebate programs will be published to this webpage as they become available. Previously announced program updates can be found here - Previous Program Updates

Visit the following federal resources to learn more about these programs and other provisions of the IRA including tax incentives.

IRA Home Energy Resources

NEW! USEPA - ENERGY STAR® Resources for State and Tribal High-Efficiency Electric Home Rebate Programs

NEW! USEPA - ENERGY STAR Rebate Finder

USDOE - Home Efficiency Rebates & Home Electrification and Appliance Rebates

USDOE - Home Energy Rebates Program Guidance for Program Administrators

USDOE - Energy Savings Hub

USDOE - Home Energy Rebate Programs Frequently Asked Questions (Updated Regularly)

USDOE – Clean Energy Tax Credits for Consumers

USDOE - Homeowner and Renter Resources

USDOE - Home Energy Rebates FAQ Fact Sheet

Energy Star - Federal Income Tax Credits and Incentives for Energy Efficiency

IRS – FAQs about Energy Efficient Home Improvements and Residential Clean Energy Property Credits

IRS - Taxability of IRA Home Energy Rebates

The White House – Clean Energy for All and the Inflation Reduction Act Guidebook

Congressional Text - H.R.5376 Inflation Reduction Act of 2022

Potential Rebate Vendors or 3rd Party Administrators 

In a good faith effort to remain in accordance with the Illinois Procurement Code [30 ILCS 500/50-10.5(e)], Illinois EPA is limited in its communications related to IRA implementation. An opportunity will be given to compete on any solicitation or any future procurements of similar supplies or services. Please ensure your entity is registered in BidBuy to receive solicitation notifications.

AVAILABLE NOW - Energy Efficiency Funding for Illinois Residents

For additional Illinois-specific energy rebate questions contact EPA.EnergyRebates@Illinois.gov.