Connecting Constituents with Federal Assistance for Energy Efficiency and Renewable Energy Projects: Resources for Individuals

Updated June 11, 2025

Connecting Constituents with Federal Assistance for Energy

Efficiency and Renewable Energy Projects: Resources for

Individuals

Congress has established programs and tax incentives to

help individuals reduce their household energy costs, or to

install renewable energy technology in their homes. This In

Focus presents a list of selected grants, rebates, loans, and

tax incentives that provide support for residential energy

efficiency improvements and/or renewable energy projects.

The following programs and tax incentives vary in scope

and funding level and are not a comprehensive list of all

potentially relevant programs or incentives for a given

project. Where applicable, each program’s Catalog of

Federal Domestic Assistance (CFDA) number is provided.

Since January 2025, President Trump has issued executive

orders (E.O.s) that have addressed the use of federal funds

in various areas. Several of these executive orders, aspects

of which are subject to litigation, direct relevant agencies to

pause certain grant-related and other funding activities and

may affect the resources discussed in this In Focus.

Some websites and programs referenced in this In Focus

may be undergoing changes or be inaccessible as agencies

comply with recent executive orders, guidance from the

Office of Management and Budget (OMB), and Secretarial

orders. If you are unable to access a reference, please

contact CRS.

Department of Energy (DOE)

Weatherization Assistance Program (WAP)

The WAP (CFDA Number 81.042) enables low-income

households to permanently reduce their energy

consumption by making their dwellings more energy

efficient, while also ensuring the health and safety of the

household.

Examples of typical energy efficiency improvements

supported by WAP include measures related to the building

envelope (e.g., windows, doors, roof, insulation), heating

and cooling systems, programmable thermostats, and the

installation of energy-efficient appliances. Health and

safety inspections assess indoor air quality and combustion

safety, and check for mold infestation.

The program is administered at the state and local level

through formula grant allocations from DOE. Constituents

must apply for assistance through their state weatherization

agency. DOE has a tool to help individuals identify their

state weatherization agency as well as how to apply for

weatherization assistance.

More information about WAP, including how to apply, can

be found on DOE’s Weatherization Assistance Program

website.

Home Energy Rebates Programs

The Inflation Reduction Act (P.L. 117-169, IRA)

established two new home energy rebate programs: the

Home Efficiency Rebates (HOMES) Program and the

Home Electrification and Appliance Rebates (HEAR)

Program, for low- and moderate-income (LMI) households.

These programs are administered at the state level through

formula allocations from DOE by designated state energy

offices. The HOMES rebates are for whole-house efficiency

upgrades that are measured or certified according to

guidelines to improve comfort and reduce energy bills. The

HEAR Rebates Program provides point-of-sale rebates to

eligible LMI households for qualified projects. Examples of

potential upgrades could include the installation of heat

pumps for heating and cooling, the installation of energy

efficient appliances, and electrical wiring upgrades.

States are launching their programs on a rolling basis.

Constituents are encouraged to contact their state energy

agency to check the status of their locality’s program. A

directory of state energy offices can be found on the

National Association of State and Energy Officials

(NASEO) State and Territory Energy Offices webpage.

Additional information about the rebate programs can be

found in DOE’s Inflation Reduction Act Home Energy

Rebates report.

Department of Housing and Urban

Development (HUD)/Department of

Veterans Affairs (VA)

Energy Efficient Mortgages (EEM)

Both HUD’s Federal Housing Administration (FHA) and

the VA insure these mortgage loans to assist homeowners

in financing energy efficiency improvements for existing

homes and installing renewable energy technologies (e.g.,

solar, wind, geothermal).

These insured loans allow borrowers who might otherwise

be denied loans to pursue energy efficiency, and they secure

lenders against potential loan default.

For HUD EEM loans, prospective borrowers must contact

an FHA-approved lender to apply for an FHA-insured EEM

loan. For EEMs backed by the VA, applicants (qualified

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Connecting Constituents with Federal Assistance for Energy Efficiency and Renewable Energy Projects: Resources for

Individuals

military personnel, reservists, and veterans) should secure a

certificate of eligibility (COE) and submit it to a VAapproved private lender.

More information about the EEM programs is provided by

the Database of State Incentives for Renewables and

Efficiency (DSIRE).

Department of the Treasury (Treasury)

Energy Efficient Home Improvement Credit

The IRA modified the Energy Efficient Home Improvement

tax credit, extending it through the 2032 tax year.

Individuals who make qualified energy-efficient

improvements to their home may now qualify for a tax

credit of up to $3,200, which includes the following:

•

A total annual credit capped at $1,200 per year for

energy-efficient property costs and certain energyefficient home improvements, with limits on exterior

doors, exterior windows and skylights, and home energy

audits.

• A separate yearly aggregate credit limit of $2,000 for

qualified heat pumps, water heaters, biomass stoves or

biomass boilers.

The credit is nonrefundable, meaning that if a taxpayer’s

credit exceeds their tax liabilities, they do not receive a

refund for the difference. More information about the

energy efficient home improvement credit can be found on

the IRS Energy Efficient Home Improvement Credit

webpage.

Residential Clean Energy Tax Credit

The IRA modified and extended the Residential Clean

Energy Credit through the 2034 tax year. Individuals who

purchase qualified renewable energy technology for their

homes are eligible.

The Residential Clean Energy Credit equals 30% of the

costs of new, qualified energy property installed anytime

from 2022 through 2032. The credit phases down to 26%

for 2033 and 22% for 2034. Qualified expenses may

include solar electric panels, solar water heaters, wind

turbines, geothermal heat pumps, fuel cells, and battery

storage technology. This credit is also nonrefundable;

however, unused credit amounts may be carried forward so

as to offset future years’ tax liabilities.

More information can be found on the IRS’s Residential

Clean Energy Credit webpage.

Department of Health and Human

Services (HHS)

Low Income Home Energy Assistance Program

(LIHEAP)

LIHEAP (CFDA Number 93.568) is a federal formula grant

program that helps low-income households pay for heating

or cooling their homes. In most states, it also provides

financial assistance for weatherization projects that can help

improve the energy efficiency of homes.

The LIHEAP statute limits the amount of funds that each

grantee (state, tribe, or territory) may spend on

weatherization to 15% of the funds available, or up to 25%

with a waiver from HHS.

Interested individuals in income-eligible households are

encouraged to contact their local LIHEAP Office with

questions regarding LIHEAP services and eligibility in their

area. They can identify their local LIHEAP office using the

LIHEAP Office Search Tool.

Emily N. Peterson, Research Librarian

Lynn J. Cunningham, Senior Research Librarian

https://crsreports.congress.gov

IF12971

Connecting Constituents with Federal Assistance for Energy Efficiency and Renewable Energy Projects: Resources for

Individuals

Disclaimer

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