The US Department of Energy (DOE) has started accepting applications for state and territory implementation of two Home Energy Rebate programmes created by the Inflation Reduction Act. These programmes aim to allocate US$8.5n to states and territories to make home energy upgrades more affordable, lower energy costs, and increase efficiency in American homes.
The Home Energy Rebate Programs consist of two components: the Home Efficiency Rebates Program and the Home Electrification and Appliance Rebates Program. The former will offer US$4.3bn in formula grants to state energy offices for energy efficiency upgrades in single and multi-family homes, while the latter focuses on reducing the upfront cost of efficient electric technologies in homes (US$4.275bn in formula grants).
In addition, the US Federal Energy Regulatory Commission (FERC) has approved proposals aimed at accelerating the connection of new power projects to the electric grid. The new FERC final rule introduces several adjustments to the interconnection process. One significant change involves transitioning from a "first come, first served" model to a "first ready" approach. In essence, projects equipped with secured land rights and permits will take precedence over those that are unprepared.
These reforms are intended to address the growing backlog of requests from wind and solar energy developers, which has been hindering the deployment of large-scale renewable energy projects. There exists currently a backlog of 2,000 GW of renewable power awaiting connection to the grid, nearly twice the current capacity of electricity generation in the United States.
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