ASA Supports DOE Rebate Guidance Protecting Consumer Energy Choice

Updated rebate rules support fuel-neutral competition and a broader range of products offered by distributors and manufacturers.

The American Supply Association (ASA) has joined longtime industry partners in supporting the U.S. Department of Energy’s (DOE) revised guidance governing federal Home Energy Rebate programs.

In a July 15 letter to the DOE, ASA and seven other national energy, equipment and contractor organizations commended the agency for changes intended to restore consumer choice, fuel neutrality and affordability within the Home Efficiency Rebates Program, commonly known as HOMES, and the High-Efficiency Electric Home Rebate Program, or HEEHR.

ASA has previously worked alongside many of the organizations that signed the letter to advocate for federal energy policies that recognize a broad range of efficient heating technologies and preserve consumer choice. The latest letter continues those coalition efforts following DOE’s release of revised program guidance on May 29 through Program Notices 26-1 and 26-2.

“ASA has consistently championed consumer choice, ensuring homeowners can select the water heating equipment that best matches their needs and budget,” said ASA VP of Advocacy, Stephen Rossi. “We joined our industry partners in backing updates to existing rebate programs to reflect this priority and look forward to policies that promote a fair, competitive marketplace.”

According to the coalition, the updated guidance better aligns the rebate programs with their statutory purpose by focusing on measurable household energy savings rather than encouraging consumers to replace existing non-electric heating systems with electric equipment.

ASA signed the letter with the American Public Gas Association, Energy Marketers of America, Hearth, Patio & Barbecue Association, National Energy & Fuels Institute, National Propane Gas Association, Organization of Energy Service Professionals and Plumbing-Heating-Cooling Contractors—National Association.

The coalition highlighted several significant changes included in the revised guidance.

Under the updated HEEHR guidance, rebates may no longer be used to subsidize the replacement of non-electric heating systems and appliances. Households installing heat pumps may retain their existing heating systems, while upgrades to existing electric equipment and installations in new construction remain eligible for support.

The Department also withdrew its previous “Envelope First, Heat Pump Ready” recommendations for the HOMES program. The coalition said this change restores fuel neutrality by allowing efficient natural gas, propane and heating-oil equipment to qualify based on the energy savings it provides.

In addition, states are no longer required to limit HOMES eligibility to ENERGY STAR-certified equipment. This allows certain high-efficiency furnaces, boilers and water heaters to qualify even when an applicable ENERGY STAR designation is not available.

The revised guidance also places greater emphasis on weatherization improvements that reduce a home’s overall energy use without steering homeowners toward a specific fuel or technology.
ASA supports public policies that allow homeowners to select equipment based on their homes, climates, budgets and energy needs. Technology-neutral policies also help preserve access to a diverse range of efficient products and solutions.

The coalition emphasized that maintaining a diverse residential energy mix can support both affordability and reliability. As electricity demand increases due to data centers, advanced manufacturing, industrial growth and other factors, preserving multiple residential energy options can help reduce pressure on the electric grid during periods of peak demand.

The organizations also argued that the revised guidance will allow limited rebate funds to reach more low- and moderate-income households. Whole-home electrical conversions can require not only new equipment but also costly electrical-panel and wiring upgrades. By allowing rebates to support a broader range of energy-saving improvements, the coalition said states can use available funds more efficiently and assist more families.

In addition to supporting the rebate changes, the coalition encouraged DOE to review its guidance for State-Based Home Energy Efficiency Contractor Training Grants. The current workforce-training guidance was developed under the prior approach and remains more heavily oriented toward electrification.

Aligning the contractor-training program with the revised rebate guidance, the organizations said, would create greater consistency across DOE’s residential energy programs and ensure that training investments reflect the full range of efficient heating and water-heating technologies available to consumers.

By Natalie Forster