DOE Issues Program Notices Rolling Back Electric Heat Pump Conversion Rebates

Editor’s Note: A version of the following release was first published in the National Propane Gas Association’s The Bobtail. 

The United States Department of Energy (DOE) has issued a slate of program notices providing that nearly $9 billion of Inflation Reduction Act funding may no longer be used to incentivize consumers to switch from propane or other gas heating and cooling systems to electric heat pumps. 

States with already-launched programs must implement the fuel-switching prohibition within three months. These actions apply to both the Home Owner Managing Energy Savings (HOMES) program (rebates up to $8,000) and the High-Efficiency Electric Home Rebate (HEEHR) program (rebates up to $14,000). 

Going forward, rebates under these programs are limited to upgrading existing electric equipment and new construction. Additionally, insulation and air sealing upgrades are required prior to installing electric upgrades. NPGA and its coalition partners requested a comprehensive review of these programs with a specific focus on their disparate impact to combustion-fueled appliances.