The electrification rebates (“High-Efficiency Electric Home Rebate Program”) enacted in the Inflation Reduction Act (IRA) provide point-of-sale rebates to enable low- and moderate-income households across America to electrify their homes. Because the electrification rebates are statutorily required to occur at point of sale, contractors and home improvement retailers must be able to determine and verify the eligibility of potential recipients. Effective income verification is crucial to drive high program uptake, decrease market friction and unlock the transformational benefits of electrification.
In this memo, we offer recommendations that the U.S. Department of Energy (DOE) can utilize to guide State Energy Offices (SEOs) to success. We also analyze high-level pathways for SEOs to implement effective and efficient income verification programs: categorical eligibility, geographical eligibility and records-checking tools, as well as layered software solutions.