Washington Home Energy Rebates

Quick Facts

• Purpose: Deliver federal Inflation Reduction Act HOMES and HEEHR rebates statewide to cut energy use, lower bills, and advance Washington’s clean energy targets.
• Administering agency: Washington State Department of Commerce, working with utilities, community-based organizations, and tribal governments.
• Eligible participants: Homeowners, renters, landlords, multifamily property owners, and manufactured home communities.
• Focus measures: Heat pump HVAC, heat pump water heaters, insulation, air sealing, induction cooking, electrical panel upgrades, and weatherization.
• Launch timeline: Pilot efforts anticipated in late 2024 with broad availability in 2025. Prepare by scheduling audits and gathering income documentation.

Program Overview

Washington has aggressive decarbonization goals under the Clean Energy Transformation Act and the Climate Commitment Act. Buildings contribute a significant portion of emissions, particularly from natural gas space and water heating. The Home Energy Rebates program will inject more than $208 million into residential retrofits, emphasizing equitable access for households facing high energy burdens.

Commerce is designing the program to complement existing initiatives like Weatherization Plus Health, Clean Energy Fund grants, and utility rebates. The state will prioritize tribal communities, rural areas, and environmental justice communities identified by the Environmental Health Disparities Map. Community navigators and tribal energy offices will play a central role in outreach, translation, and application assistance.

Eligibility Details

Property Types

• Single-family homes and townhomes: Eligible for both HOMES and HEEHR pathways.
• Multifamily buildings (5+ units): Will access aggregated incentives with per-unit caps and requirements for tenant benefit agreements.
• Manufactured homes: Qualify if located on owned land or in parks where residents control their energy bills. Weatherization upgrades for manufactured homes receive special focus due to high energy intensity.
• Rentals: Tenants can benefit through landlord-led projects or potentially through direct-to-consumer appliance rebates if Commerce partners with retailers.

Income Requirements

• Low-income (≤80% AMI): Eligible for maximum rebate tiers and may receive complementary services like roof repair or mold remediation through Weatherization Plus Health.
• Moderate-income (≤150% AMI): Eligible for mid-tier rebates.
• Above 150% AMI: Can claim HOMES incentives based on energy savings but not HEEHR appliance rebates.
• Income verification will utilize tax returns, benefit letters, pay stubs, or categorical eligibility (e.g., participation in SNAP, TANF, LIHEAP). Tribal members may use tribal income documentation.

Contractor and Implementer Requirements

• Contractors must register with Commerce’s portal, carry appropriate licenses and insurance, and complete training on cultural competency, energy equity, and consumer protection.
• Commerce will certify community-based implementers—nonprofits, housing authorities, tribal entities—who can aggregate projects and provide wraparound services.
• Projects must comply with Washington State Energy Code and, when applicable, local ordinances such as Seattle’s electrification requirements.

Incentive Structure

HOMES Rebates

• Low-income households: Up to $8,000 per home for 35%+ energy savings, $4,000 for 20–34% savings, and $2,000 for 15–19% savings.
• Moderate-income households: Up to $4,000 for 35%+ savings and $2,000 for 20–34% savings.
• Higher-income households: Incentive levels TBD but likely $2,000–$4,000 for deep savings.
• Multifamily projects: Incentives per dwelling unit with adders for buildings in environmental justice communities or served by public utility districts.

HEEHR Rebates

• Up to $8,000 for heat pump HVAC systems meeting cold-climate specs relevant to Washington’s winters.
• $1,750 for heat pump water heaters, with emphasis on hybrid or split systems for cold basements.
• $840 for induction cooktops and $500 for heat pump clothes dryers.
• $1,600 for weatherization bundles and $4,000 for panel upgrades/wiring improvements.
• Household cap: $14,000; multifamily per-unit cap: $8,000.

Community and Tribal Adders

• Projects led by tribal governments or located on tribal lands may receive additional grants for workforce training or infrastructure upgrades.
• Community navigators may offer stipends for translation, childcare during workshops, and transportation to contractor consultations.

Application Process

1. Assess energy use: Schedule a home energy assessment through a local utility, community action agency, or private auditor. Collect data on insulation levels, heating systems, and energy bills.
2. Identify measures: Prioritize upgrades that produce significant savings and align with household needs. Consider integrating indoor air quality improvements, such as balanced ventilation, which may qualify for weatherization rebates.
3. Select implementer or contractor: Choose from Commerce’s approved list. For multifamily properties, consider aggregator partners experienced in affordable housing retrofits.
4. Reserve rebates: Submit a reservation application including income documentation, project scope, and expected savings. Reservations ensure funds are held while work is scheduled.
5. Complete pre-requisite repairs: Address health and safety issues (mold, lead paint, electrical hazards) using Weatherization Plus Health or community grants before installing new equipment.
6. Install measures: Ensure contractors pull permits, follow best practices, and provide tenant notices. Capture photos and commissioning reports.
7. Verification: Commerce or partners may conduct inspections, blower-door tests, or utility data reviews to confirm savings.
8. Receive rebates: Rebates may be paid to contractors as invoice credits or sent to homeowners via check/ACH after verification.

Documentation Checklist

• Proof of residency or ownership (deed, lease, utility bill).
• Income documentation (tax returns, pay stubs, benefit letters, tribal statements).
• Energy assessment report with baseline metrics.
• Signed contractor agreements with itemized costs.
• AHRI certificates and equipment spec sheets.
• Permit approvals and inspection reports.
• Pre- and post-upgrade photos, including removal of gas appliances.
• Tenant protection plans for rental properties.

Integration with Washington Programs

• Weatherization Plus Health: Provides no-cost weatherization and health/safety fixes. Combine with IRA rebates to tackle electrification once homes are ready.
• Clean Energy Fund: Offers grants for community-scale projects; multifamily developers can stack funds.
• Utility rebates: Seattle City Light, Puget Sound Energy, Avista, and public utility districts provide heat pump and insulation rebates. Align application timelines to avoid missing windows.
• State sales tax exemptions: Certain clean energy technologies qualify for sales tax exemptions; provide documentation to retailers at purchase.
• Local building performance standards: Seattle, Bellingham, and other cities have performance mandates. Document IRA-funded improvements to demonstrate compliance.

Tribal Considerations

• Commerce is developing tribal-specific pathways with flexible documentation, respect for tribal sovereignty, and support for tribally-owned utilities.
• Tribal housing authorities may receive block grants to retrofit multiple homes at once, integrating cultural values and community priorities.
• Workforce development funds will support tribal members in becoming certified heat pump installers and energy auditors.

Multifamily Strategies

• Conduct benchmarking using ENERGY STAR Portfolio Manager to target buildings with the highest energy intensity.
• Engage tenants early with multilingual materials and listening sessions. Provide relocation assistance if unit access is required for extended periods.
• Explore performance-based contracts where energy service companies finance upgrades and are repaid through savings.
• Coordinate with Washington State Housing Finance Commission to ensure rebate-funded improvements align with compliance requirements and do not trigger rent increases beyond allowable limits.

Rural and Island Community Tips

• Work with local cooperatives or public utility districts that may offer on-bill financing or community solar programs.
• Address ferry-access logistics by planning contractor schedules carefully and budgeting for travel costs.
• Consider hybrid heating solutions (dual-fuel heat pumps) for extreme cold snaps, ensuring they meet program guidance.
• Evaluate resilience benefits, including pairing electrification with battery storage to maintain power during outages caused by storms or wildfires.

Example Projects

• Spokane Homeowner: The Lopez family, earning 75% AMI, replaces a gas furnace with a variable-speed heat pump, upgrades attic insulation, and installs an induction range. They secure $8,000 in HOMES rebates, $6,000 in HEEHR rebates, and $2,500 from Avista utilities, reducing their $26,000 project to $9,500 before tax credits.
• Yakama Nation Housing Authority: Implements a community-wide retrofit program installing heat pump water heaters and insulation upgrades. Tribal adders cover workforce training, and tenants receive workshops on using new equipment. Energy bills drop by 30% on average.
• Seattle Multifamily Building: A 40-unit affordable housing complex electrifies domestic hot water and installs smart thermostats. Aggregated rebates exceed $250,000, enabling compliance with Seattle’s building performance standards while keeping rents stable.

Planning and Risk Mitigation Tips

• Start early: Demand will be high. Gather documentation and secure energy assessments now.
• Bundle incentives: Coordinate with utility rebates and federal tax credits to minimize out-of-pocket costs.
• Manage contractor availability: Vet contractors for experience with Washington’s climate and building codes. Consider cooperative purchasing with neighbors or housing associations.
• Protect tenants: Draft agreements detailing how savings will be shared and how temporary disruptions will be mitigated.
• Track data: Maintain records for five years in case of DOE audits. Use digital storage with backups.

Frequently Asked Questions

• Is DIY work eligible? Generally no; professional installation is required. Commerce may explore retailer discounts for smaller appliances but confirm before purchasing.
• Can I combine rebates with the state sales tax exemption? Yes. Provide retailers with exemption forms and keep copies for tax records.
• What happens if funding runs out? Reservations guarantee funds for a set period. If demand exceeds supply, Commerce may implement waitlists or prioritize low-income applicants.
• Do rebates affect SNAP or TANF benefits? Rebates are generally not counted as income, but consult benefit administrators and document expenditures.
• Can nonprofits apply on behalf of clients? Yes, community-based implementers can bundle applications and manage projects, especially for low-income households.

Additional Resources

• Washington Department of Commerce – Home Energy Rebates
• Weatherization Plus Health
• Environmental Health Disparities Map
• Clean Energy Fund Programs
• Washington State Housing Finance Commission
• Puget Sound Energy Rebates