Glossary · Programs & credentials

HOMES rebates (Home Owner Managing Energy Savings)

Also called: HOMES rebate · HOMES program · Home Efficiency Rebates · IRA section 50121 · Homeowners Managing Energy Savings

A federal rebate, run by states, that pays $2,000 to $8,000 based on the modeled energy savings of whole-home upgrades.

What it means

HOMES rewards projects by how much energy they save, with a minimum of 20% modeled savings, and covers insulation, air sealing, heating and cooling equipment, water heaters, duct sealing, appliances and lighting. It's open to all income levels, with larger rebates for lower-income households. DOE's May 2026 revision restored the law's name for the program, Home Owner Managing Energy Savings, made ENERGY STAR compliance and several state plan elements optional, and removed Justice40 requirements.

Why it matters in an audit

A HOMES project usually starts with an energy audit and model, which is exactly what an assessment provides.

Typical numbers

Reference values with their sources. Your auditor’s report gives the figure for your own house.

What	Value	Source
Status (checked 2026-10-26)	Available in select states (DOE page updated July 8, 2026)	energy.gov ↗
Rebate	$2,000–$8,000, based on modeled savings with a 20% minimum; grantees may raise rebates for households under 80% of area median income	energy.gov ↗
May 29, 2026 changes (Program Notice 26-1)	Renamed from 'Home Efficiency Rebates'; ENERGY STAR compliance optional; Justice40 requirements removed; contractor vetting against Treasury's Do Not Pay list	energy.gov ↗
National funding	$4.3 billion	energy.gov ↗

Sources

Learn more here

Related terms

High-Efficiency Electric Home Rebate (HEEHR) An Inflation Reduction Act rebate run by states for efficient electric equipment and envelope upgrades in lower- and moderate-income homes.
Inflation Reduction Act (IRA) The 2022 US law that created state-run home energy rebates and expanded home energy tax credits, which a 2025 law later cut short.
Home energy audit A professional check-up of how your home uses and loses energy, with tests and a written, ranked list of upgrades.
Area median income (AMI) The middle household income for your area; rebate programs set eligibility as a percentage of it, such as under 80% or 150% of AMI.
Air sealing Blocking the hidden gaps where air leaks in and out of a house, which cuts drafts, heating and cooling costs, and moisture problems.
Categorical eligibility Qualifying for an assistance or rebate program automatically because your household already receives certain benefits, such as SNAP, SSI or TANF.

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