IRA funds boost energy, appliance upgrades for low-income Coloradans

U.S. Department of Energy photo of heat pump electric systems.

A state program that offers no-cost energy and appliance upgrades to low-income Colorado residents is getting a boost from federal funding authorized by the Inflation Reduction Act.

Colorado’s Weatherization Assistance Program, which provides free services to improve home energy efficiency, served nearly 4,000 people over the last year, according to the Colorado Energy Office. Depending on the results of a home energy audit, applicants may receive no-cost installation of HVAC upgrades, improved insulation, high-efficiency appliances and more.

CEO announced Wednesday that Colorado will become the first state to augment its weatherization program with $7.6 million in funding from the federal Home Electrification and Appliance Rebate program, the first phase of a larger rollout of over $140 million in home energy rebate funding awarded to the state as a result of the Inflation Reduction Act.

“We are focused on saving Coloradans money on energy bills by increasing access to high-efficiency heat pumps and better insulation for homes,” Gov. Jared Polis said in a press release. “Upgrades like these save Coloradans money on utilities, make homes more comfortable year-round, and protect our clean air.”

Passed by congressional Democrats in 2022, the IRA’s package of $370 billion in funding to fight climate change included $9 billion for home energy rebates administered by the U.S. Department of Energy.

Services through the weatherization program are available to Coloradans with incomes below 60% of the state median income or 80% of their county’s median income. For a four-person household, the statewide threshold is a household income of less than $78,062. Anyone who currently receives Supplemental Social Security Income or benefits through federal food-stamps programs may qualify automatically, and renters may receive WAP services with landlord permission. Residents can learn more about eligibility requirements and apply for the program on CEO’s website.

Another $46 million in HEAR funding will be made available as consumer rebates to low- and middle-income Coloradans sometime next year, CEO said Wednesday. The state also has plans to launch an IRA-funded Home Efficiency Rebate program aimed at retrofitting multifamily buildings and mobile and manufactured homes.

Space and water heating accounted for over two-thirds of all home energy use in Colorado in 2020, according to data from the Energy Information Administration. The majority of Colorado homes are heated by natural gas, which account for an estimated 7% of the state’s total greenhouse gas emissions in 2020.

“Cutting emissions from building heating and energy use is essential to achieve our ambitious climate goals,” Will Toor, CEO’s executive director, said in a statement Wednesday. “Our weatherization program has helped Coloradans reduce their energy use and save money on utility costs for more than four decades. With this key funding from the IRA, our office is ready to extend the benefits of this program to even more hardworking Colorado families.”

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