By Miranda Boutelle
One of the most common questions I get about energy efficiency rebate programs is, “Why would the company that sells me energy want me to use less of their product?” It’s a good question.
Rebates provide financial incentives for people to use less energy in their homes by reducing the costs of efficiency upgrades, such as insulation, new HVAC systems, water heaters or other appliances. This helps your electric cooperative save money by eliminating or delaying the need to buy additional power or build new power generation facilities. Using less energy also helps lighten the load on existing generation and transmission infrastructure that delivers power to your home through your public power district or electric cooperative.
Helping consumers save energy is a powerful tool for electric utilities. Instead of building or paying for more power generation to meet rising needs in the local community, electric utilities create programs that help people save energy in their homes and businesses.
Your electric utility and other local organizations may offer efficiency programs with special incentives for home upgrades, such as rebates paid after a project is completed. State and federal tax credits may also allow you to reduce the amount of taxes you owe for completing eligible home purchases or upgrades. Federal energy efficiency tax credits ended Dec. 31, 2025. If you completed any upgrades before that date, you can apply for credits on your 2025 federal filings.
Energy efficiency programs are funded through a variety of sources, including surcharges on customer utility bills, grants, and state and federal funding. Some states and regions are required by law to provide energy efficiency programs.
If you are planning to purchase new appliances, equipment or complete an efficiency upgrade, do your research first. I recommend starting with your public power district or electric cooperative to see if they offer energy efficiency programs. Also check with your state energy office, which might have additional programs to help. The Inflation Reduction Act allocated federal funds to state-administered programs, including home efficiency rebates and home electrification and appliance rebates, to help residents with retrofits such as windows, insulation, air sealing, HVAC equipment and appliance upgrades.
There are also income-eligible programs available for energy assistance and weatherization, such as the U.S. Department of Energy Weatherization Assistance Program, typically administered by a local community action agency.
Once you identify a rebate, tax credit or financing option you’re interested in, review the criteria carefully. Criteria can vary by program, so make sure you know the eligibility requirements before making a purchase to avoid missing out on energy-saving opportunities.
Some programs require preapproval before you begin a project. Proof of existing equipment or conditions may be required, such as insulation levels or window types. You may also need to schedule an energy audit conducted by a program representative or photo documentation.
Once you know your project meets the requirements of any available programs, you can proceed with installation. You will likely need to fill out an application and submit a final invoice to prove the project is complete. You may also need to submit pictures or have an inspection from a program representative.
Once approved, your rebate will typically be issued as a bill credit or check, depending on the source.
Participating in a rebate program can help you lower your energy use, save money and improve comfort in your home. It can also help your energy provider and the electric grid. Contact your public power district or electric cooperative to learn more about available rebates and incentives.