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California Homeowners Left in Limbo as Trump Administration Halts Energy Rebates

Jacob Shelton March 5, 2025

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(Image Credit: IMAGN) On Sept. 8, 2023, students took Debra Shore, Region 5 administrator for the Environmental Protection Agency, and Phil Roos, director of the Michigan Department of Environment, Great Lakes, and Energy to see the district's solar panels and hoop house.

California – California has put a hold on its rebate programs aimed at helping consumers enhance the energy efficiency of their homes and appliances, following a federal funding freeze instigated by the Trump administration. This decision endangers $582 million earmarked for both consumer rebates and program administration.

The state’s Energy Commission had started disbursing rebates as recently as February, but now these incentives are at risk. “Many states were just getting started on their programs, and suddenly they’re tossed into turmoil,” said Lowell Ungar, director of federal policy at the American Council for an Energy-Efficient Economy.

The Home Energy Rebates programs, established under the Inflation Reduction Act signed by President Biden in 2022, are designed to provide consumers with financial incentives for home upgrades. Households could receive up to $8,000 for efficiency improvements and up to $14,000 for electrification and appliance upgrades, based on income eligibility.

Most states, aside from South Dakota, have applied for federal funding, and California was set to receive the second-largest allocation, following Texas. Unfortunately, the U.S. Department of Energy froze the disbursement of these funds on January 27, citing conflicts with the current administration’s agenda.

As a result, the California Energy Commission paused its $80 million home energy rebate program on February 25, awaiting further guidance from the Trump administration on the funding status. The Commission acknowledged that it had been unable to secure funds for program administration since January 31.

Meanwhile, some states like Maine and North Carolina have opted to continue their rebate programs for the time being. Officials from North Carolina’s Department of Environmental Quality have stated they are monitoring federal actions that could impact their Energy Saver NC program.

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