Consumers may soon get up to $14,000 or more in rebates for making energy-efficient home upgrades — if states sign on

Consumers may soon be able to access $14,000 or more of federal rebates for making energy-efficient upgrades to their home.

But just how soon will vary by state — and some may opt not to make the funds available at all.

The rebates are part of the Inflation Reduction Act, which earmarked $369 billion in spending for policies to fight climate change, amounting to the biggest piece of climate legislation in U.S. history. President Joe Biden signed the measure into law in August 2022.

The IRA devotes a total of $8.8 billion for two initiatives: the Home Efficiency Rebates program (which offers up to $8,000) and the Home Electrification and Appliance Rebates program (up to $14,000).

In essence, they are consumer discounts to cover the partial, or in some cases full, cost of home-efficiency projects like installing insulation or an electric heat pump or buying electric Energy Star appliances.

The rebates are generally designed to be delivered at the point of sale, from a retailer or contractor. Their value varies depending on factors like project expense, household income and total energy savings.

“It’s a first-of-its-kind program,” said Kara Saul Rinaldi, CEO and founder of AnnDyl Policy Group. “We’ve never had federal rebates like them before.”

States, which will administer the funds, must apply to the U.S. Department of Energy to receive their allocated grants. The application window opened July 27 when the DOE issued guidance to state energy offices on program design.

How soon the money might start flowing to consumers is unclear, however.

The earliest adopters may be able to implement their respective programs and begin issuing rebates near the end of 2023, but most will likely do so next year, according to federal officials and energy-policy experts.

“Exact timing will vary across programs, but generally DOE expects households to be able to access these rebates in much of the country in…