DOE Releases New Rebate Guidance for the Inflation Reduction Act

As part of Pearl Certification’s commitment to providing our contractors with the best possible information surrounding the Inflation Reduction Act (IRA), we share the following. Over the next several weeks, we will also be sharing detailed information, thoughts, insights, and actions Pearl is taking to clarify, optimize, and influence to ensure this program provides benefits to homeowners and ease of navigation for our elite Pearl Network Contractors. As a reminder, please visit Pearl’s IRA Resource Center for exclusive IRA tools.

The Theme: Market Transformation Takes Center Stage

The release of the home energy rebate guidance from the U.S. Department of Energy marks a significant milestone in the rollout of the Inflation Reduction Act. The guidance provides much-needed clarification to state energy offices as they work on designing their programs, which may launch as early as later this year in some states and in 2024 in many others. As explained by the DOE, the $8.8B in rebates funded through the IRA “provide a once-in-a-generation opportunity to deliver innovative efficiency and electrification programs to households across the United States.”

Included in the DOE guidance is a requirement for third-party certification for all projects that are funded through the Home Efficiency Rebate Program (“HOMES” ​​— one of the two programs supported by the IRA) that supports the accurate valuation of energy-efficiency upgrades. The goal of this requirement is to drive consumer demand and transform the market for high-performing homes. Pearl Certification is uniquely positioned to help states meet this requirement and support the continued transformation efforts.

States can now finalize the designs of their IRA rebate programs in line with the requirements laid out by the DOE in the recently released guidance. These program designs will be reviewed by DOE prior to launch. Homeowners will then be able to access these rebates through channels identified by the states as programs start rolling out in late 2023 and into 2024 and beyond.

The IRA represents an incredible opportunity for households to save money and improve their quality of life, for contractors to expand their businesses, and for states to achieve their energy, economic, and environmental goals. The IRA-funded efficiency upgrades, when paired with a third-party certification from Pearl Certification, will ensure that homeowners capture the full value of the investments they’ve made to their homes and incentivize them to continue to make further improvements over time.

Key High-Level Takeaways

• One of the four top-level outcomes of the rebate programs stated by DOE is to develop “proven value streams for sustained investments to continue market transformation.” Pearl’s systematic approach to building value for high-performing homes will help achieve this and expedite building the marketplace for high-performing homes.

  • The DOE Guidelines for the IRA Rebate programs largely restates the statute for third-party certification requirements. Pearl Certification remains uniquely positioned to meet the third-party certification requirement under the HOMES program that supports the accurate valuation of energy-efficiency upgrades.

  • The Guidelines require states to design their programs (for both rebate programs) to incorporate market transformation, and Pearl is well-positioned to support states in meeting those requirements.

  • The market transformation requirements explicitly state that the programs must enable the market to recognize the value of the upgrades, including at time of sale/rental.

Pearl Certification works closely with policy groups and other industry partners to learn of IRA developments as soon as they become available, as well as advocate for our Pearl Network Contractors to ensure a seamless execution of this key legislation. We will continue to share timely IRA insights and developments in a variety of forums, including our Pearl blog, so please stay tuned.