November 2024 Policy Blog

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Kristen Cheriegate  |  ICAST Policy Manager

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California Launches Home Energy Rebate Program

The U.S. Department of Energy announced California has launched program activities under the federal Home Energy Rebates Program, with $300 million in funding, supported by the Inflation Reduction Act (IRA). The Home Energy Rebates program is part of the High-Efficiency Electric Home Rebate Act (HEEHRA) passed as part of the IRA. The Home Energy Rebates Program contains two distinct sub-programs: California will begin with the Home Electrification and Appliance Rebates (HEAR) portion of the rebate program, while the second portion, Home Efficiency Rebates (HER), is projected to launch in 2025. HEAR will be overseen by the California Energy Commission and implemented by TECH Clean California, an existing state program offering single-family and multifamily (MF) rebates on heat pumps for space heating and cooling. HER and HEAR will expand state programs, providing additional support for low- to moderate-income households.

Multifamily housing HEAR rebates are available now. Rebates for energy-efficient appliances and equipment are available to eligible California M.F. property owners/operators based on tenant income. Eligible M.F. buildings can save up to $14,000 per dwelling unit. This includes up to $8,000 for an eligible ENERGY STAR certified heat pump HVAC system and $1,750 for an ENERGY STAR certified heat pump water heater, among other rebates. Californians wishing to utilize the Home Energy Rebates Program must work with a HEEHRA-trained contractor enrolled in TECH Clean California to receive rebates. More information can be found on TECH Clean California’s website here.

Biden-Harris Investment in Rural Areas Funded by the IRA

The U.S. Department of Agriculture (USDA) announced an additional $104 million in grants and loans for the Rural Energy for America Program (REAP), impacting 300 clean energy projects in 34 states. Under REAP, the USDA partners with farmers and small businesses to expand access to clean energy and energy efficiency, improve infrastructure, develop businesses, and lower energy bills in rural, tribal, and highly impoverished areas. The program has set aside a portion of funds for underutilized technologies to ensure all funds do not go to a single popular technology solution such as solar energy or energy efficiency.

A list of all 2024 REAP funded projects can be found here.

Solar Market Prospects Q3 2024 Report

The Solar Energy Industries Association (SEIA) released its Solar Market Insight Report for Quarter 3 of 2024. This report contains the latest five-year outlook on the U.S. solar industry, indicating it is on track to install over 250GW of capacity from 2024-2029 and has an expected annual growth average of 4% from 2025 onward. Solar accounted for 67% of all new electricity-generating capacity added to the grid in the year’s first half.

Some key stats:

  • Utility-scale solar, the largest market segment, saw a 59% increase in installations year-over-year while experiencing a 23% decline from Q1 2024. Issues such as skilled labor shortages, high-voltage equipment restraints, and interconnection delays continue to hamstring utility-scale solar.
  • Residential solar declined about 37% year-over-year and is expected to continue falling this year, driving a 19% contraction. California has been driving this decline, with residential solar shrinking 36% from the first quarter during the state’s transition to net billing and sustained high interest rates.
  • Community solar saw a decline of 12% both quarter-over-quarter and year-over-year. Challenges include saturation in mature markets and insufficient growth in emerging markets. Additionally, what SEIA experts thought would be a booming year for community solar legislation has instead “transformed into a year of disappointments, highlighting the difficulty of getting new community solar programs enacted and off the ground.” However, solar stakeholders believe that the Environmental Protection Agency’s $7 billion Solar for All funding will revitalize community solar program growth and successful launches nationwide at the end of this year.

 

 

 

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