Appliance Rebates Plan
To Decarbonize Households, America Needs Incentives for Electric Appliances
By Trevor Higgins, Ari Matusiak, Bianca Majumder, Sam Calisch, and Debbie Lai, June 2021
Because meeting our nation’s climate goals requires electrifying the U.S. economy, the Center for American Progress and Rewiring America teamed up to propose a policy roadmap for federal infrastructure legislation that will enable the electrification of U.S. households. The report, “To Decarbonize Households, America Needs Incentives for Electric Appliances,” calls for new consumer rebates for the purchase and installation of modern electric appliances to make them cost-competitive with their fossil-fueled equivalents. The report identifies space heating, water heating, and cooking as prime targets for these rebates, along with supporting upgrades to breaker boxes where necessary. Further, the report identifies the need for elevated rebate levels for low- and moderate-income households.
The proposed rebates are critical to meeting decarbonization targets, and would unlock energy bill savings for U.S. households, create new jobs, and make indoor air healthier.
Recommendations
Deliver an average rebate incentive of $6,000 to participating low- and moderate-income (LMI) households, and an average of $4,200 to non-LMI households, to cover the purchase and installation costs of electrified appliances. More efficient electric appliances then provide the opportunity for lower ongoing monthly utility bills.
*The installation rebates reimburse 100 percent of the total installation costs for electric replacements in LMI households, and 50 percent of the total installation costs in non-LMI households.
Media Coverage
Bloomberg GovernmentKellie Lunney and Zachary Sherwood
Energy Briefing: Groups Push Home Appliance Transition Rebates
"Decarbonization goals mean robust investments in electrification across the U.S. economy, including in people’s homes. That starts with more energy-efficient heaters, stovetops, and breaker boxes, according to the analysis from the Center for American Progress and Rewiring America, a nonprofit advocating for the electrification of the economy."
Press Releases
Center for American ProgressJune 3, 2021
"Today, the Center for American Progress and Rewiring America released a new plan that would offer Americans incentives to switch from gas to electric appliances to make a difference in fighting climate change and air pollution. The plan to have households replace just four appliances—heat pump space heaters, heat pump water heaters, induction cooktops/ranges, and upgraded breaker boxes—would also create millions of new jobs and lower monthly bills for most Americans."