Governor Mills and U.S. Energy Secretary Granholm Announce New Home Energy Rebate Program for Maine

MAINE, September 18 - Back to current news.

September 18, 2024

$36 million Federal grant will support heat pump rebates for income-eligible Maine residents in multifamily and manufactured homes, keeping homes comfortable year-round while reducing energy costs

South Portland, MAINE -- Governor Janet Mills and U.S. Department of Energy (DOE) Secretary Jennifer M. Granholm today announced the launch of Maine's new Home Energy Rebate Program. The program is funded by a $36 million federal grant supported by the Biden-Harris Administration's Inflation Reduction Act (IRA) and will help eligible households save money on energy bills, upgrade to clean energy equipment, improve energy efficiency in their homes, and reduce air pollution.

The Home Energy Rebate Program will be administered by Efficiency Maine and is meant to complement existing incentive programs for all income levels. Eligible program participants include low-income owners of manufactured homes as well as affordable multifamily new construction homes.

"Our transition to heat pumps is creating good-paying jobs, curbing our reliance on fossil fuels, and cutting costs for Maine families, all while making them more comfortable in their homes -- a hat trick for our state," said Governor Janet Mills."We are setting an example for the nation, and with this new Federal funding through the Biden-Harris Inflation Reduction Act, more Maine people will be able to take advantage of efficient, climate-friendly heat pumps that strengthen our economy, protect our environment, and save money."

"Maine has been a 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 the benefits of energy-efficiency improvements."

"Maine people are all too familiar with bitter cold temperatures, which is why heat pumps are an incredibly important tool to help efficiently and affordably heat and cool homes," said U.S. Senator Angus King. "With winter right around the corner, this $36 million grant, funded through the Inflation Reduction Act, is an investment in reliable, clean energy solutions that will keep folks warm and won't break the bank. The Home Energy Rebate Program will cement Maine's commitment to being a leader in the clean energy space."

"Maine's leadership in energy efficiency is paving the way for a more sustainable and affordable future, and the launch of Maine's Home Energy Rebate Program is a major step forward in making energy-efficient technology accessible to all Mainers, especially those in underserved communities," said Congresswoman Chellie Pingree. "Made possible by the landmark Inflation Reduction Act passed by Congressional Democrats, this federal funding will help Maine families lower their energy bills and reduce their carbon footprint while creating good-paying, clean energy jobs. I'm proud to support this initiative, which will make our homes greener, our economy stronger, and our communities healthier for generations to come."

"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."

"Maine is demonstrating that energy-efficient and comfortable homes are achievable for people across all income levels," said Hannah Pingree, Director of the Governor's Office of Policy Innovation and the Future and co-chair of the Maine Climate Council. "The Home Energy Rebate Program will help to retrofit existing affordable housing units and ensure that new units are built to the highest efficiency standards. This work reflects the types of bold action that the Maine Climate Council recommends to ensure that people across our state benefit from climate and energy programs."

"Maine's IRA Rebate program is custom-made to tackle the heating and cooling needs of low-income folks in apartments and mobile homes," said Michael Stoddard, Executive Director of the Efficiency Maine Trust. "This program will complement our robust, existing programs and increase demand for the services of the many small businesses that install and service this technology."

"Maine is a national leader in climate friendly and energy efficient heat pumps thanks to Governor Mills, the Governor's Energy Office, and our colleagues at Efficiency Maine Trust," said MaineHousing Director Dan Brennan. "Thanks to this new federal investment, Maine will be able to equip more affordable housing facilities with these cutting-edge heating and cooling technologies. We are very grateful for this new opportunity from the Department of Energy."

The Governor welcomed Secretary Granholm to tour Stroudwater Apartments, a new energy-efficient affordable housing complex in Westbrook. The project was funded in part by historic housing investments by Governor Mills, including $1.9 million in proceeds from the housing bond refinance that the Governor authorized in 2021. The apartments opened to new tenants on September 15, and each unit is equipped with a heat pump and LED lighting. The building also has solar panels and electric vehicle charging stations.

"Westbrook Housing's mission to provide affordable, efficient, and quality housing is achievable through this program," said Chris LaRoche, Executive Director of Westbrook Housing. "Whether a large apartment building or a single-family home, the economic and health benefits of heat pumps are easily accessible to through this program. On behalf of the people we serve, we are greatly appreciative of Governor Mills and the Biden-Harris Administration for their support."

Following the tour, the Governor and Secretary formally announced the launch of the rebates program at ReVision Energy, a local clean energy company that installs heat pumps and solar panels, among other products.

"Heat pump technology offers unmatched efficiency, providing both heating and cooling while dramatically lowering energy costs," said Dan Clapp, co-founder of ReVision Energy. "This program is a game-changer for Mainers. It will help make clean energy solutions more accessible and equitable, particularly for low-income households. We're proud to be a local company driving the clean energy transition, not only through installing innovative products like heat pumps but also by building an inclusive workforce that reflects the future we're working toward."

The $36 million Federal grant represents half of Maine's IRA funding allocation of $72 million for home energy rebates. The remainder of the funds will be used to launch a separate program, which is anticipated to be available to residents by early 2025.

Eligible low-income manufactured homeowners (i.e., household income below 80 percent of area median income) will be able to save as much as $14,000 through funding from the Home Energy Rebates, including up to:

• $8,000 for a whole-home heat pump for space heating and cooling
• $4,000 for an electrical panel
• $2,500 for electrical wiring

Multifamily new construction projects can get up to an $8,000 rebate per dwelling unit for heat pumps. To qualify, at least 50 percent of the building's dwelling units would need to be occupied by low-income households. For eligibility and other details, visit the Efficiency Maine website.

After the first year, Maine plans to expand the manufactured home incentives to also include eligibility for moderate-income owners (i.e., households earning between 80-150 percent of area median income). Smaller new construction multifamily projects will also be able to apply for rebates.

Maine is the most heating oil dependent state in the nation, with over 56 percent of households reliant on home heating oil as their primary source of home heating, compared to only 4 percent nationally.

Expanding heat pump adoption has been a key priority for Governor Mills, who set a goal to install 100,000 heat pumps in Maine by 2025. That goal was surpassed two years ahead of schedule in 2023, and the Governor announced a new goal to install another 175,000 heat pumps by 2027, bringing the total number of heat pumps installed during the Mills Administration to 275,000.

According to the most recent data, Maine has seen a 10 percent decrease since 2018 in heating oil as a primary fuel for home heating which coincides with nation-leading heat pump adoption.

In February, Governor Mills announced that Maine received a $10 million grant through the Bipartisan Infrastructure Law to support a new program to install heat pumps in 675 mobile homes -- among the first programs of its kind in the nation.

In July, Governor Mills announced that Maine and four other New England states will receive a total of $450 million in federal funding to accelerate the adoption of heat pump technology in residential single-family homes and multifamily buildings across the region. In total, the award will support the installation of 580,000 heat pumps across the five states. Maine's share of the award is estimated to be between $45 million and $72 million, which will support installation of highly efficient heat pumps, for home heating and cooling, and heat pump hot water heaters.

For more information on Maine's new federally funded rebate programs, please visit the Governor's Energy Office website.