States forge ahead with Inflation Reduction Act energy rebates — so far, South Dakota is the only one to opt out
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A handful of states have rolled out rebates to consumers who make their homes more energy-efficient, just months after New York became the first state to do so, in May.
Meanwhile, South Dakota officials in August declined the federal funding, which is tied to two new programs created by the Inflation Reduction Act, a landmark climate law enacted in 2022.
The IRA earmarked $8.8 billion for consumers via two Home Energy Rebates programs.
Consumers can access up to $8,000 of Home Efficiency Rebates, and up to $14,000 of Home Electrification and Appliance Rebates.
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Together, the two rebate programs aim to defray — or in some cases fully offset — the cost of retrofitting homes and upgrading appliances to be more energy-efficient. Such tweaks can help consumers cut their utility bills while also reducing planet-warming carbon emissions, officials said.
The two programs have varying rules that determine which consumers are eligible and how much money they can access. In some cases, rebates will depend on household income and a home’s overall energy reduction.
Nearly every state has indicated it will launch a rebate program for residents, according to a U.S. Department of Energy spokesperson.
State officials had an August deadline to officially decline the federal funds. They have a Jan. 31, 2025 deadline to submit a program application to the DOE.
South Dakota is the only state so far to have signaled publicly that it won’t administer the rebates.
“With good faith, we did look into this,” Jim Terwilliger, commissioner of the South Dakota Bureau of Finance and Management, said during a July 30 appropriations hearing. “We just don’t believe that it’s the right thing for South Dakota.”
Here are the states that have applied
States, which administer the federal funds, have some leeway relative to program design. They must apply for funding and can distribute rebates to consumers after their application is approved.
New York launched the first phase of its rebates May 30.
Five others — Arizona, Maine, New Mexico, Rhode Island and Wisconsin — have since launched rebate programs, too, according to U.S. Department of Energy data as of Sept. 24.
“I’m expecting more and more to roll out,” said Kara Saul-Rinaldi, president and CEO of AnnDyl Policy Group, a consulting firm focused on climate and energy policy.
Many more states, as well as Washington, D.C., have submitted applications or had them approved, according to DOE data: California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Michigan, Minnesota, New Jersey, New Hampshire, Massachusetts, North Carolina, Oregon, Tennessee, Vermont, Washington and West Virginia.
Together, these 26 states plus the District of Columbia have applied for $4 billion in total funding so far, the DOE said.
The rebates are a new program, and “complex government programs like these take time and coordination to set up,” according to a DOE spokesperson.
“The Inflation Reduction Act put states in charge of designing and implementing Home Energy Rebate programs that fit their local needs,” the spokesperson wrote in an e-mail. “As each state has different resources and capabilities, each state’s timeline will be different.”
South Dakota is not participating
South Dakota Gov. Kristi Noem at the Republican National Convention on July 15, 2024.
Scott Olson | Getty Images News | Getty Images
However, South Dakota officials in August signaled they wouldn’t participate, the lone state so far to decline the federal rebate funding.
“South Dakota will have no part in facilitating the Green New Deal,” Ian Fury, a spokesperson for Gov. Kristi Noem, a Republican, said in an e-mailed statement.
States had an Aug. 16, 2024 deadline to officially decline the funds.
“We don’t think the administrative burden and the expense of administering a program like that is the appropriate thing to do, and we generally disagree with the policy,” Terwilliger, of the South Dakota Bureau of Finance and Management, said in a July hearing.
The Inflation Reduction Act allows states to use up to 20% of its funding for administrative purposes.
Fifty-one states and territories have applied to DOE for early administrative funding, the agency said.
The $68.6 million of federal money that had been set aside for South Dakota rebates will be redistributed among participating states.
Fury also noted this isn’t the first time South Dakota has rejected federal spending. It was the only state to reject extended unemployment benefits in 2020 during the Covid-19 pandemic, Fury said.
The Green New Deal is a climate-change policy initiative supported by congressional Democrats starting around 2019. Bipartisan legislation to create an energy rebate program had existed almost a decade earlier, like the Home Star Energy Retrofit Act in 2010.
The concept of consumer rebates tied to energy efficiency “predates the Green New Deal by many years,” said Saul-Rinaldi.
Florida reverses course
It appears Florida officials reversed course from their original stance on the rebates.
Republican Gov. Ron DeSantis in 2023 had vetoed the state’s authority to spend about $5 million of federal funds to administer the energy rebate program. At the time, a spokesperson for the state’s Department of Agriculture and Consumer Services told CNBC that Florida wouldn’t be applying for the rebates as a result.
Florida Gov. Ron DeSantis at the Republican National Convention on July 16, 2024.
Robert Gauthier | Los Angeles Times | Getty Images
Now, Florida is preparing for a soft launch of the rebate programs in late 2024 and a full launch in early 2025, according to information on a state website.
A spokesperson for the Department of Agriculture and Consumer Services didn’t return a request for comment on the change in position.
‘Every state is approaching [its program] differently’
At a high level, consumers will be able to get the rebates at the point of sale, when they buy an appliance directly from a retailer or from a qualified contractor who’s helping a household complete an efficiency project.
“Every state is approaching [its program] differently, for many reasons,” Saul-Rinaldi said.
Many are rolling them out in phases. For example, New Mexico is starting by offering a $1,600 rebate for low-income consumers in single-family homes who buy insulation from a participating retailer.
Similar to other states, qualifying New Mexico residents will be able to later access additional rebates such as:
- $8,000 for an ENERGY STAR-certified electric heat pump for space heating and cooling;
- $4,000 for an electrical panel;
- $2,500 for electrical wiring;
- $1,750 for an ENERGY STAR-certified electric heat pump water heater;
- $1,600 for air sealing; and
- $840 for an ENERGY STAR-certified electric heat pump clothes dryer and/or an electric stove.
Consumers and contractors should consult their state energy department website to learn more about their specific programs and eligibility, Saul-Rinaldi said.
The U.S. Energy Department suggests households don’t wait to accomplish necessary home energy upgrades or projects if their state hasn’t formally rolled out rebates. They may be eligible for other federal programs, “including tax credits, the Weatherization Assistance Program, and other state, local, and utility programs,” the agency said.
The Mockingbird Solar Center, Ørsted’s largest solar project globally, is now online, next to protected prairie donated by the renewable energy giant.
This massive 468-megawatt (MW) solar farm is set to power 80,000 homes and businesses, providing a major boost to the Texas grid.
But the launch of Mockingbird Solar isn’t just about clean energy – it’s also about restoring precious ecosystems. Ørsted has donated 953 acres of the Smiley-Woodfin Native Prairie Grassland, which sits next to the solar center, to The Nature Conservancy. The donated land is now the Smiley Meadow Preserve, a protected area for tallgrass prairie that’s home to more than 400 species of grasses and wildflowers.
Tallgrass prairies are some of the rarest ecosystems in the US, with less than 1% of Texas’ original tallgrass prairies still in existence. Tallgrass prairie does a lot of heavy lifting for the environment, including storing carbon, preventing floods, and providing crucial habitats for pollinators.
“Native prairies are the rarest landscapes left in Texas – so much so that many people have never seen one,” said David Bezanson, land protection strategy program director for The Nature Conservancy in Texas. He added that preserving Smiley Meadow will not only conserve one of the best prairie remnants left but also help restore other prairie habitats and boost regional biodiversity.
The Mockingbird Solar Center, a half-billion-dollar project, is part of Ørsted’s $20 billion push to expand renewable energy production across the US. Beyond generating electricity, it will inject $75 million into local property taxes, benefiting schools and other public services. The project also created over 550 construction jobs and will continue to be supported by operations staff moving forward.
Ørsted worked with US companies, including First Solar, for solar panels and partnered with local businesses like Drake Construction and Pfifer Farms for construction materials. It also gave more than $50,000 to local volunteer fire departments in Roxton and Brookston.
With Mockingbird Solar now up and running, Ørsted has more than 6 gigawatts of onshore wind, solar, and battery storage projects either in operation or being built across the US.
Read more: Ørsted got a huge Tesla battery storage system for the world’s single-largest offshore wind farm
If you live in an area that has frequent natural disaster events, and are interested in making your home more resilient to power outages, consider going solar and adding a battery storage system. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and share your phone number with them.
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Jeep’s first global luxury electric SUV will arrive at US dealerships any day. Despite its $72,000 price tag, lease prices for the 2024 Jeep Wagoneer S EV start at just $599 per month.
2024 Jeep Wagoneer S EV lease prices
After unveiling its first global electric SUV, Jeep’s CEO said the Wagoneer S “marks a new chapter” in its storied history.
Jeep claims the Wagoneer S packs “exhilarating performance.” With 600 hp and 617 lb-ft of torque, the big-body SUV can sprint from 0 to 60 mph in just 3.4 seconds. Its 100 kWh battery pack also gives it a driving range of over 300 miles.
The electric SUV is unmistakably still a Jeep, but it did get several upgrades to distinguish it as an EV. The grille is now enclosed without the need to cool a massive engine, giving it a sporty, more modern look.
Jeep revamped its design with a new illuminated seven-slot grille with ambient cast lightning. It also fine-tuned its profile, adding flush door handles, a rear wing, and integrated fins for better airflow.
The first Jeep Wagoneer S Launch Edition models get exclusive dark accent design elements like 20″ Gloss Black Wheels.
Inside, the electric SUV is loaded with the latest tech and connectivity, including a best-in-class 45″ of usable screen space. The setup includes a 12.3″ center screen and an exclusive 10.25″ interactive front passenger screen.
Jeep already announced that the 2024 Wagoneer S EV will start at $71,995, but now the company has revealed lease prices for the first time.
According to Jeep, the 2024 Jeep Wagoneer S Launch Edition can be leased for $599 per month for 36 months (10,000 miles per year). The deal includes $4,999 due at signing and a $7,500 EV incentive. However, you may want to act fast, as Jeep’s offer is only good until December 2, 2024.
| Jeep Wagoneer S vs Tesla Model Y | Starting Price | Range | Lease Price |
| Jeep Wagoneer S Launch Edition | $71,995 | +300 miles | $599/mo |
| Tesla Model Y RWD | $44,990 | 320 miles | $299/mo |
| Tesla Model Y AWD | $47,990 | 308 miles | $399/mo |
| Tesla Model Y AWD Performance | $51,490 | 279 miles | $599/mo |
In comparison, Tesla Model Y RWD lease prices start at $299 for 36 months with $2,999 down (10,000 miles). The Performance AWD model starts at $599 per month. In an end-of-year promo, Tesla also offers 3 months of free Supercharging and Full Self-Driving.
Ready to drive off in your new electric SUV? We can help you get started. You can use our links below to view offers on the Jeep Wagoneer S and Tesla Model Y at a dealer near you.
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