Home Efficiency Rebates (HER) and Home Electrification and Appliance Rebates (HEAR) together make up the Kentucky Home Energy Rebates Program that will be administered through the Kentucky Energy and Environment Cabinet, Office of Energy Policy (EEC-OEP). These rebates will help Kentucky households save money on select home improvement projects that can lower utility bills or make their homes more comfortable.  

The U.S. Department of Energy allocated $134 million to support the Kentucky Home Rebates Program. The funding will be split between the Home Efficiency Rebates (HER) and Home Electrification and Appliance Rebates (HEAR).

Kentucky is anticipating a 3–4-year Program delivery period, but the federal deadline for spending these funds is September 30, 2031. If Program funding is spent before the expected timeframe, the Program will end based on all rebate funding being distributed to Kentucky households.

No, rebates associated with the Kentucky Home Energy Rebates Program are not yet available, but the Program is slated to launch in 2025. The Kentucky Energy and Environment Cabinet has received Early Administrative Funding from the U.S. Department of Energy (DOE) to design and develop the Program.

Please check the Program Status Tracker on the website landing page and sign up for email notifications to stay updated on the progress and timing of the Program launch.

Collaboration and partnership with utilities are essential for a successful program that serves communities across the Commonwealth. Efforts will be made to partner with utilities for utility data access to minimize application burdens for Program applicants and improve access to cost-saving rebates. Other collaboration opportunities will be explored with the overall goal of maximizing impact to serve as many Kentucky households as possible.

Yes. The Kentucky Home Energy Rebates Program will have an approved contractor network that will be listed on the Program website. To be eligible for rebates, the installation must be performed by a Program-approved, registered, in-network contractor. Further details on how a contractor can become a Kentucky Home Energy Rebates Program-approved contractor will be available on the website before the Program launches. Please check the Program website to sign up for email notifications to receive updates.

Several listening sessions and roundtables have already taken place to gather feedback from the local community, housing partners, civic and social organizations, state and local government agencies, contractors, and workforce development organizations. Feedback received during these sessions is being incorporated into the Program design. We are planning additional listening sessions as we prepare for the Program launch. Please sign up on the Program website for email notifications to stay informed about future opportunities to provide input and feedback on the Program’s design and implementation.

Yes, the Kentucky Home Energy Rebates Program has been in contact with weatherization agencies throughout the state and will be partnering with them throughout the Program design process to help inform the delivery of the rebates across Kentucky communities.

Kentucky has selected a modeled approach. Under the modeled pathway, rebate amounts are calculated based on estimated energy savings from completed energy improvements, household income level, total project cost in the final invoice, and home type consistent with definitions in U.S.Department of Energy’s Program Requirements. The Program will release more detailed information once the DOE provides plan approval.

For specific questions regarding the Kentucky Home Energy Rebates Program, email the Program team at [email protected].

Kentucky single- and multifamily homeowners, property managers or owners, and renters with proof of unit-owner permission who meet income and eligibility requirements may qualify for Program rebates. The Program is limited to residential structures only; agricultural commercial, and industrial facilities do not qualify. For more information see the Program website.

Rebate eligibility and amounts are based on the applicant’s Area Median Income (AMI). You can find AMI amounts by state, county, and number of household members on the Housing and Urban Development (HUD) website. Note that on the HUD linked page provided here, you will need to scroll down to “Click Here for FY 2024 IL Documentation,” select “Kentucky” and then your county. Note that the year in the “Click Here” link will change to reflect the most recent AMI data applicable to the current year based on when new data is published.

Note: AMI amounts vary by year and there is an allowance for flexibility in the rebate amounts available at a given AMI. The HUD website should only be used as a general guideline for Program eligibility until the rebates and final income levels are available.

Additional information on qualifications and how to apply will be released as the planning and application period is completed.

The Program is being designed to ensure the rebates are available to those most in need. Based on the U.S. Department of Energy guidance, rebate amounts will be determined by the household income, with the highest level of rebate available to lower-income households.

Three ways that an applicant, regardless of whether the applicant owns or is renting, can verify income:

1. Through submittal of allowed income documentation.
   1. Wage Income Documents (e.g., Pay Statements, Form W-2)
   2. Tax Documents (e.g., most recent Federal Tax Return, Self-Employment Income Tax documents)
   3. Retirement Income Documents (e.g., Pension, Social Security)
   4. Family Income Support Documents (e.g., Alimony, Child Support)
   5. Government Assistance Income Documents (e.g., Social Security Disability Insurance, Veterans Benefits, Unemployment Income)
2. By providing proof of categorical eligibility through participation in recognized low-income programs.
3. By submitting an IRS 1040 or W-2 form for review.

There are multiple paths for an applicant living in a multifamily property or who is renting a single-family dwelling to confirm income eligibility, including:

• Submitting allowed income documentation (e.g., pay statements, Form W-2, retirement income documents, family income support documents, government assistance income).
• Tax Documents (e.g., most recent Federal Tax Return, Self-Employment Income Tax documents).
• Providing proof of categorical eligibility through participation in recognized low-income programs.

 Note: in addition to providing income eligibility, the applicant will also need written approval of the owner acknowledging and approving participation.

Participants in certain income-qualified federal programs are considered to have “categorical eligibility” for the Rebates Program. Categorical eligible applicants can avoid having to demonstrate that they are income eligible, and Categorical eligibility by the U.S. Department of Energy will be automatically eligible for the related Kentucky Home Energy Rebates Program. Participants approved for participation in the following recognized programs have categorical eligibility by the U.S. Department of Energy. Programs are listed below or can be viewed here.

Recognized Programs for Categorical Eligibility

• • Low-Income Home Energy Assistance Program (LIHEAP)
  • Medicaid
  • Supplemental Nutrition Assistance Program (SNAP)
  • Head Start
  • Lifeline Support for Affordable Communications (Lifeline)
  • National School Lunch Program – Free (NSLP)
  • Housing Improvement Program (HIP)
  • Housing Opportunities for Persons with AIDS
  • Supplemental Security Income (SSI)
  • Weatherization Assistance Program (WAP) (if 80% AMI is greater than 200% of the Federal Poverty Level)
  • Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) (if 80% AMI is greater than 185% of the Federal Poverty Level)
  • Verified government or non-profit program serving Asset Limited Income Constrained Employed (ALICE) persons or households (eligible ONLY for lower rebate amount) (HEAR only)
  • Households living in the following recognized multifamily housing programs:
  • Public Housing (owned and operated by Public Housing Authorities)
  • Privately owned multifamily buildings receiving project-based assistance (Section 8, Section 202, Section 811)
  • Privately-owned multifamily buildings that house residents receiving tenant-based assistance
  • Section 42 Low-Income Housing Tax Credit (LIHTC)

No, projects must be installed by an approved Program contractor to be eligible.

Yes, there are rebates for new construction in the Kentucky Home Energy Rebates Program under HEAR. Further details on the Program’s integration with new construction will be available as the Program design is finalized.

No. Retroactive rebates are not available. Projects completed before the Program launch date will not qualify for rebates. Eligibility for rebates in the Kentucky Home Energy Rebates Program includes households completing and submitting a Program application, approval, and having the work performed by a Program-approved contractor.

Once the Program launches, the website will include an online application for applicants to apply and submit required documentation, find contractors, schedule appointments, and track their application progress. Applicants who do not have internet access can complete the application by phone or US mail.

Applicants needing assistance with the application process will be referred to Program staff. Program staff will provide application support for applicants needing this assistance.

The Kentucky Home Energy Rebates Program is being designed to make rebates easily accessible to households. Eligible participants may receive rebate amounts through reduced pricing for qualified projects and equipment. The rebate amounts will be factored into project costs prior to installation.

The Kentucky Home Energy Rebates Program design seeks to minimize out-of-pocket costs for low-income applicants where possible. Rebate amounts will be factored into project costs prior to installation and deducted from the total installation costs. Potential upfront costs are dependent on household eligibility, which is based on Area Median Income (AMI) and the qualifying energy efficiency equipment installed.

Rebate amounts will be based on income levels, projected energy savings from the improvements identified during a home assessment, and the cost of the equipment. The rebates are intended to incentivize the installation of energy-saving products and services that will lower energy costs for those having the most financial need based on Area Median Income.

Note: the maximum rebate amount is set in the federal Inflation Reduction Act legislation. Kentucky has requested to increase the federally set maximum rebate amount based on state-specific Area Median Income (AMI) data.

The Program is developing partnerships with other state agencies, local governments, utility companies and cooperatives, distributors, contractors, housing authorities, and other community-based organizations focused on housing, workforce development, and/or underserved communities. The Program anticipates partnering with the Kentucky Housing Corporation, Kentucky Kynect (Kentucky Community Resources | kynect), and United Way, including its 2-1-1 initiative (https://kentucky211.org/).

If you are interested in hearing related discussions, follow this link: Listening Sessions

Yes, applicants looking for immediate home energy retrofit assistance may be eligible for other local, state, or federal programs including tax credits, the Weatherization Assistance Program, and local utility programs. To find other energy-related resources that might provide assistance, see the Kentucky Home Energy Rebates Program Resources page here. Some of the resources are:

• • Local Community Action Councils assist with the Weatherization Assistance Program (WAP) managed by the Kentucky Housing Corporation (Weatherization Assistance Program – About). WAP focuses on improving the energy efficiency of low-income households, by insulating, repairing, or installing energy efficient heating systems. This program serves low-income homes of the elderly, the disabled, and families with young children. assist with applications and determining eligibility. You can find your county’s Council at Network – CAPKY
  • KYNECT (Kentucky Community Resources | kynect) is a collection of resources to assist Kentuckians with various needs. You can search for resources by need and location. For your issue, choose “Utility Support.”
  • United Way 211 (https://kentucky211.org/ ) is similar to KYNECT, providing links to various resources that might be of assistance to you. You can also call 211 or text your zip code to 898211.

Yes. Efforts will be made to partner with utilities to share utility data, and additional collaboration opportunities will be explored with the overall goal of reducing out-of-pocket expenses while maximizing impact and serving as many households as possible. The Program recognizes the importance of coordinating across various programs that will support applicants to maximize the benefits of the Program while also preventing duplication of efforts across federal grants and rebates for the same single upgrade or project.

Yes, a project or appliance that qualifies for rebates can also receive a tax credit under the Energy Efficient Home Improvement Credit (25C) or other qualifying credits. Be sure to verify that the project and appliance being installed qualifies for both the tax credits and the Program rebate. The tax credit applies only to the part of the eligible costs that the participant pays themselves. (i.e., not the portion of the cost covered by the rebate) and the tax credit is not an instant rebate. Information about tax credits is available at the following federal government websites:

• • IRS Fact Sheet: Updates to frequently asked questions about the Energy Efficient Home Improvement Credit (§ 25C) and the Residential Clean Energy Property Credit (§ 25D FS-2025-01, January 2025 (https://www.irs.gov/pub/taxpros/fs-2025-01.pdf)
  • IRS Home Energy Tax Credits (https://www.irs.gov/credits-deductions/home-energy-tax-credits )
  • Energy Efficient Home Improvement Credit (https://www.irs.gov/credits-deductions/energy-efficient-home-improvement-credit )
  • Residential Clean Energy Credit (https://www.irs.gov/credits-deductions/residential-clean-energy-credit )
  • Federal tax incentives and federal rebate information is available on the DOE Home Upgrades | Department of Energy website (Home Upgrades | Department of Energy)

Tax credits are filed annually at year-end, and individuals who owe taxes are eligible for a credit against their tax liability (that is, taxes owed) for qualifying expenditures. The incentives are considered non-refundable, reducing the amount of taxes owed instead of giving a direct payment (or refund) to the recipient. 

Rebates are intended to offset upfront equipment costs and installation of products included in the Kentucky Home Energy Rebates Program. Rebates are helpful because they reduce the upfront costs for eligible equipment or installation and are available to individuals who may have limited, or no tax liability.

Note: This is not tax advice. Refer to guidance issued by the IRS for detailed information on the rules associated with tax credits.

Applicants can select their own contractor from a list of Program-approved contractors. Kentucky is planning to use a robust qualified contractor network in the Kentucky Home Energy Rebates Program to ensure all participating contractors meet Program standards required by federal guidance. Transparent qualifications and requirements will be communicated to contractors to ensure a highly skilled and qualified workforce for Program implementation. To be included in the Program-approved list, contractors will need to participate in trade-specific, baseline technical proficiency validation and/or training offerings, as well as a Program-specific administrative orientation process where details on invoicing processes and the contractor’s role in invoicing will be clearly communicated.

The contractor can email [email protected] and sign-up for email updates here. If your contractor is interested in participating in our network, please send them this survey to capture their future interest. More information will become available for interested contractors and energy assessors in the coming months.

Kentucky has yet to determine final rebate amounts and is working through stakeholder engagement, Program design, and DOE application approval before finalizing Program details. You can sign up for email notifications to stay informed.

Yes. The Program is collaborating with the U.S. Department of Energy (DOE) to create a Qualified Products List. Please note that the DOE modified the ENERGY STAR requirement on June 17, 2024, and states are now allowed to propose alternative products/equipment for certain equipment used in multifamily buildings.

Yes. Dual fuel and hybrid heat pump configurations are eligible under HER so long as it is included in the equipment that would achieve the minimum required energy savings.

Once the intake documentation is submitted, you will receive a response about your eligibility. Once approved, you will be provided with a list of Program-approved contractors. The assessment timeline will range based on scheduling availability in your area. The installation timeline will depend on the equipment recommended and coordination for installation. The Program and your selected contractor will communicate regular updates regarding timing of the installation throughout the process.

The Program will collect data from various sources. A strict information and security policy will be in place to protect all collected Program data including limiting sensitive data collection, use of encryption software for transmitting Personally Identifiable Information (PII), multi-factor authentication for account access, and immediate reporting and action on any potential breaches.

The Program is being designed to ensure the rebates are available to those most in need. Based on the U.S. Department of Energy guidance, rebate amounts will be determined by the household income, with the highest level of rebate available to lower income households.

Quality assurance and control protocols are being developed as part of our Consumer Protection Plan to prevent and resolve adverse customer interactions and will also include how customer complaints will be collected, how the Program will handle poor contractor performance and how sub-standard installations will be remedied. This plan will be publicly available prior to Program launch.

A marketing plan is being developed in coordination with community-based organizations, contractors, state agencies and utility providers to best reach homeowners, tenants, contractors, and households throughout Kentucky.  In addition, an Education and Outreach Strategy Plan has been created that includes integrated feedback gathered from the working groups and community engagement sessions. Training, toolkits, resources, and support will be provided to participating Contractors to ensure they are providing the best experience to Program participants.

Contractors have a key role in the success of the Kentucky Home Energy Rebates Program as they will conduct home assessments and perform installations. They will also help participants to achieve savings through the Program. While details on the specific role of contractors will be forthcoming, the Program will have a “Kentucky Home Energy Rebates Program, Approved Contractor” process.

If you are interested in participating in our network, please fill out this survey to provide feedback and capture your future interest. More information will become available for interested contractors and energy assessors in the coming months.

All contractors will have a chance to show their qualifications and meet criteria, such as technical competencies and financial capacity. Transparent contractor qualifications and requirements will be communicated to ensure a highly skilled and qualified workforce for Program implementation.

To become a Program-approved contractor, contractors will need to participate in trade-specific, baseline technical proficiency validation and/or training offerings, as well as a Rebates Program administrative orientation process where details on invoicing processes and the contractor’s role in them will be clearly communicated.

The Program is designing the ‘Qualified Contractor’ requirements for the Kentucky Home Energy Rebates Program delivery including details about participating on the Program-approved contractor list and application processing.

The Home Energy Rebates Program details and timelines are dependent on individual states, so the best resource for information regarding Kentucky is energyrebates.ky.gov. Rebate information from national sources like Rewiring America and others can provide general information. Please keep in mind that these resources are not reflective of individual states’ program design. The best way to stay informed is to suggest households register for the Kentucky Home Energy Rebates Program email list. Program staff will send timeline information and other relevant updates to email list registrants as it becomes available.

The Kentucky Home Energy Rebates Program will identify the presence of asbestos, lead, mold, deferred roofing, and other structural repairs, when possible, using the standard method of visual inspections. The Program will not complete assessments, projects, or quality assurance activities if when doing so, it would jeopardize the health and safety of the household occupants, contractors, Program staff, or the structural integrity of the home. If structural and contaminant issues are identified that may hinder energy efficiency upgrades or the upgrades would exacerbate unsafe site conditions, the Program will not complete the project or continue to incentivize work until the site is safely remediated. Whenever possible, Kentucky’s Implementer will refer Program participants with unsafe conditions in their homes to Kentucky-based organizations that support or fund the remediation of structural or safety issues for income-qualified participants. Referral is not a guarantee that the remediation will occur nor that the remediation will be cost-free or discounted.

Applicants needing assistance with the application process should be referred to Program staff. Contractors may be eligible to receive additional rebates for installations completed in identified disadvantaged communities (DACs). Program staff will provide application support for applicants needing this assistance.

Program participants will receive access to the Program-approved contractor list and will make their own selection. However, if a participant was referred to the Program by a specific contractor, the Program will evaluate that contractor for network participation. If the contractor qualifies to be a part of the network, the best efforts will be made to direct the participant to that contractor first.

The Program promotes the approved contractor list, offering increased business opportunities, inclusion of the contractor’s business on the Program website, and the potential for diversification of business services.

Contractors will not be enlisted until the Kentucky Home Energy Rebates Program application and plans are approved by the U.S. Department of Energy. While awaiting approval, the Program is actively pursuing contractors. If you are interested in participating in Kentucky’s network, please fill out this survey to capture your interest. More information will become available for interested contractors in the coming months.

Yes. All interested contractors will need to complete the Kentucky Home Rebates onboarding process and possess the appropriate state licensure or certifications for their specific areas of interest.

The Program is currently evaluating software options for:

Home Assessments:    

The software that is selected must be U.S. Department of Energy (DOE)-approved and adhere to the BPI-2400 standard, which is mandatory for accurate energy modeling.

Contractor Information: 

There will be a separate centralized software system used for contractor data collection and reporting.