Residential Retrofit Programs to Complement Federal Rebate Programs, Brief 2: Navigating Regulatory Mandates for Utility Program Investments

Utilities (and other administrators of utility-sponsored energy efficiency programs) are uniquely positioned to help states implement federally funded residential retrofit incentive programs included in the Inflation Reduction Act of 2022 (IRA). Utilities and regulators should act promptly to make the most of these time-limited incentives.

Utilities, their state regulators, and other stakeholders should work together to align incentives to encourage state-utility collaboration. To maximize savings from the IRA, regulators should require utilities to incorporate the impacts of IRA provisions in resource planning and engage with their state energy offices on implementation. Regulators should also adopt clear savings attribution frameworks. 

This brief is the second in a three-part series on coordinating state implementation of federal residential retrofit incentives with utility and other energy-efficiency program efforts. The briefs are intended for energy efficiency program administrators, implementers, and evaluators; state energy offices; regulators; and others working to maximize the impact of expanded federal funding for residential retrofits for near-term energy savings and carbon reductions as well as long-term market transformation. Other briefs in this series focus on aligning state incentive programs with utility programs and leveraging long-term market transformation (forthcoming).    

Read Brief 1

Read Brief 3