Climate bill rebates for electric appliances and upgrades coming to Illinois in 2025
They are some of the juiciest consumer incentives in President Joe Biden’s 2022 climate bill: rebates of up to $8,000 for a heat-pump air conditioner and heater, up to $4,000 for an electrical panel, up to $2,500 for electrical wiring, and up to $1,750 for an electric heat pump water heater.
And they’re coming to Illinois.
The state plans to roll out its home energy rebates in the first quarter of 2025, the Illinois Environmental Protection Agency said in a written response to questions from the Tribune.
The state also released some key eligibility information this week: Initially, the rebates will only be available to low-income households, or those making less than 80% of the area median income.
That translates to less than about $62,800 for an individual in the Chicago area and less than about $89,700 for a family of four.
The state is prioritizing low-income households in an effort to meet federal requirements and receive full funding, according to the Illinois EPA. Illinois is eligible for up to $263 million under the federal climate bill, the Inflation Reduction Act.
Moderate income people — or those making 80% to less than 150% of the area median income — will not qualify for the first round of rebates but “could be eligible as the program progresses,” the agency said.
Moderate income translates to less than about $117,750 for an individual in the Chicago area, and less than about $168,150 for a family of four.
Illinois plans to offer rebates for Energy Star-certified electric heat pumps for space heating and cooling, electrical panels, electrical wiring, and Energy Star-certified electric heat pump water heaters, as well as up to $1,600 for insulation, air sealing and mechanical ventilation products and up to $840 for an Energy Star-certified electric heat pump clothes dryer and/or an electric stove, cooktop, range or oven, according to the Illinois EPA.
The Inflation Reduction Act aims to reduce planet-warming greenhouse gas emissions at a time of growing concern about rising temperatures, melting glaciers and dangerous heatwaves, droughts and floods.
The main cause of greenhouse gas emissions is the burning of fossil fuels, and the Inflation Reduction Act offers incentives for businesses and individuals to switch to electricity, which can be generated by renewables such as wind and solar.
Edgewater resident Maggie Bowman said she’s been eagerly awaiting news about whether she’s eligible for a rebate for an electric induction range.
Bowman, who has asthma, wants to stop cooking with gas for health and environmental reasons.
“When I saw that the rebates could be pretty sizable, I said, ‘Well, let me wait until those become available and see if I might qualify,'” said Bowman, who works for a nonprofit.
She said it’s not yet clear if she will meet the income requirement, but she’s glad that Illinois is prioritizing low-income communities that have suffered disproportionately from pollution.
“I’m proud of the state for doing that,” she said. “Will it disappoint some people who were hoping they would qualify? Yeah, probably. But as long as all of the money that’s on the table is used in our state, which I’m sure it will be, I think it’s great.”
