Looking to cut your energy bills and make your home more comfortable? Energy-efficient home grants in the United States can help you do both—without draining your savings. These programs offer homeowners and renters financial assistance for improvements like new windows, insulation, energy-efficient heating and cooling systems, solar panels, and more.
What Are Energy Efficient Home Grants?
Energy efficient home grants are financial incentives—often funded by federal, state, or local governments—that help pay for upgrades to reduce energy use in residential properties. Unlike loans, grants typically don’t require repayment if you meet program guidelines.
These grants are part of broader efforts to reduce greenhouse gas emissions, lower energy consumption, and promote renewable energy sources across the U.S.
What Kinds of Projects Qualify?
Most energy-efficient home improvement grants cover upgrades that help your home use less electricity or natural gas.
Common Qualifying Projects
- Upgrading insulation and sealing leaks
- Installing Energy Star-rated windows and doors
- Replacing outdated HVAC systems with energy-efficient heat pumps
- Switching to LED lighting or smart thermostats
- Adding solar panels or geothermal systems
- Replacing old appliances with energy-saving models
Some programs may even include rebates or grants for home energy audits to help determine the best upgrades for your specific situation.
Who Is Eligible for These Grants?
Eligibility for energy-efficient home grants varies by program.
- Income Level: Many grants target low- to moderate-income households.
- Homeownership: Some grants are only available to homeowners, while others are open to renters with landlord approval.
- Location: Certain grants are state-specific or available only in select cities or counties.
- Home Condition: Homes must often be older or demonstrate a need for energy improvements.
Key Federal and State Programs to Know
Weatherization Assistance Program (WAP)
The U.S. Department of Energy’s Weatherization Assistance Program helps low-income households improve energy efficiency at no cost. Services may include insulation, duct sealing, HVAC repair or replacement, and weather stripping.
Who Can Apply: Low-income families, seniors, and individuals with disabilities.
Where to Apply: Through your state’s WAP agency. Visit https://www.energy.gov/scep/wap
Inflation Reduction Act Home Energy Rebates (2023-2025)
Part of the Inflation Reduction Act, this initiative provides up to $14,000 in rebates for qualifying energy-efficient upgrades, including insulation, heat pumps, and electrical panel updates.
Who Can Apply: Homeowners and renters, with extra incentives for low-income households.
Where to Apply: Programs are being rolled out at the state level. Check your state’s energy office for updates.
Residential Renewable Energy Tax Credit
Though not a grant, this federal tax credit lets you deduct up to 30% of the cost of installing solar energy systems (like solar panels or solar water heaters) from your taxes.
Who Can Apply: Homeowners with qualifying renewable energy systems.
Where to Apply: Claim it through IRS Form 5695 on your federal tax return.
State & Utility Rebate Programs
Many states and utility companies offer energy efficiency rebates or grants for residents upgrading appliances, HVAC systems, windows, or lighting. These are often stackable with federal incentives.
Example: California’s TECH Clean California program offers incentives for heat pump installations. Massachusetts’ Mass Save® program covers insulation, heating upgrades, and more.
Where to Apply: Check with your local utility or your state energy office’s website.
How Much Can You Save?
Here’s a quick look at the potential value of common grant-supported improvements.
| Upgrade | Potential Savings or Incentives |
|---|---|
| Insulation & air sealing | Up to $2,000 through federal/state programs |
| Energy-efficient windows | Up to $600 tax credit or rebate |
| Heat pump installation | Up to $8,000 in rebates (low-income households) |
| Solar panels | 30% federal tax credit (no upper limit) |
| Smart thermostats & LED lighting | Often 100% reimbursed by utilities |
Tips for Getting Started
1. Schedule an Energy Audit
An energy audit helps pinpoint where your home is losing energy—and which improvements qualify for grants.
2. Check Local and Federal Incentives
Visit EnergyStar.gov and your state energy department to see what’s available in your area.
3. Apply Early
Grant funding is limited and often awarded on a first-come, first-served basis. Apply as early in the year as possible.
4. Use Approved Contractors
Many programs require that work be performed by certified or approved contractors to qualify for reimbursement.
Why Now Is a Great Time to Apply
With rising energy costs and expanded funding from recent federal legislation, there’s never been a better time to make energy-efficient upgrades to your home. Whether you’re replacing drafty windows, installing a new heat pump, or switching to solar, there are grants and incentives that can significantly reduce your out-of-pocket cost.
Bottom line: These grants not only save you money—they make your home more comfortable, valuable, and sustainable for years to come.