Maine Now Offers IRA’s Electrification Rebates

PORTLAND, Maine — The state of Maine has launched the first part of its Home Energy Rebates program, supported by federal Inflation Reduction Act (IRA) money.

Maine has begun the Home Electrification and Appliance Rebates (HEAR) portion of the program, which offers eligible homeowners point-of-sale rebates for certain high-efficiency HVAC equipment and electrical system upgrades.

Maine’s HEAR program — one of two Home Energy Rebates programs — will be overseen by the Governor’s Energy Office and implemented by Efficiency Maine. Efficiency Maine already offers incentives for heat pumps and other upgrades.

Efficiency Maine is now using HEAR funding to offer rebates to low-income owners of manufactured homes, and to affordable multifamily construction projects. Low income is defined as a household income of less than 80% of an area’s median income, or AMI.

Eligible owners of manufactured homes can get rebates of up to $14,000 for certain upgrades, including $8,000 for a heat pump. Multifamily construction projects of 24 units or more can a rebate of up to $8,000 per unit for heat pumps. To qualify, at least 50% of the complex’s units would need to be occupied by low-income households.

Next year, Maine plans to expand the manufactured home incentives to include moderate-income households (those earning between 80% and 150% of AMI). Smaller multifamily construction projects will also be able to apply for rebates.

“Maine has been a national leader in providing its residents with rebates to upgrade home heating and cooling systems to energy-efficient heat pumps,” said U.S. Secretary of Energy Jennifer M. Granholm. “DOE is proud to provide this funding through the Inflation Reduction Act to give even more Mainers opportunities to enjoy an energy efficient home.”

“This funding will enable Maine to continue our progress on heat-pump deployment, reducing household energy bills, creating good jobs, and supporting local businesses all while cutting greenhouse gas emissions,” said Dan Burgess, director of the Governor’s Energy Office. “This grant from the Inflation Reduction Act will ensure Maine can meet our ambitious target of 275,000 heat pumps installed by 2027. I look forward to continuing this work and thank Secretary Granholm and the U.S. DOE for their support.”

The state plans to launch a second Home Energy Rebates program later. Under Maine’s Home Efficiency Rebates (HER) program, existing multifamily buildings will be able save money on retrofit measures that reduce whole-building energy consumption.

Maine is the most heating oil-dependent state in the nation, with more than 56% of households reliant on home heating oil as their primary source of home heating, compared to only 4% percent nationally. According to the most recent five-year data, Maine has seen a 10% decrease in heating oil as a primary fuel for home heating, which coincides with its increasing adoption of heat pumps.