Indiana launches HVAC rebates as funding limbo slows national rollout

Indiana last week launched its Home Energy Rebates programs under the Inflation Reduction Act (IRA), becoming the first state to do so since President Trump took office. 

The backdrop: The IRA in 2022 earmarked nearly $9 billion for states to provide point-of-sale rebates to consumers who make qualified HVAC upgrades. 

• But, but, but: On January 20, the president signed an executive order freezing these funds, requiring the Department of Energy to “immediately pause the disbursement” for 90 days.

What’s happening: “The Indiana Office of Energy Development is announcing the launch of the Indiana Energy Saver Program,” a May 14 statement said. “Hoosiers may apply now through the program’s online portal.”

• “Because of the thoughtful, innovative planning and design process from our Indiana team,” added Governor Mike Braun, “Hoosiers in all 92 counties will have the opportunity to realize true energy savings.”

Zoom out: As of January 17, 12 states, including D.C., had active programs, and all remaining states except South Dakota (which opted out) were developing theirs. See an archived state-by-state tracker.

• In response to the freeze, five previously active states — Arizona, California, Colorado, Georgia, and Rhode Island — either paused or delayed their programs, though Arizona, California, and Georgia have since resumed operating, according to their websites. 
• All other non-active states as of January 17 remain in a holding pattern.

What to watch: A judge in April ordered the Department of Energy to resume disbursing funds as part of a lawsuit claiming the freeze is illegal; however, the agency hasn’t issued an official statement regarding the Home Energy Rebates since then.

• “[States] have signed contracts with DOE that they will get the money, so creating this uncertainty is throwing these programs into turmoil,” said Lowell Ungar, a director at the American Council for an Energy-Efficient Economy.
• “They need the certainty that they can move forward and help their citizens and help their energy systems,” he added. 

The Department of Energy didn’t return a request for comment.