Saving Money and Supporting the Grid: How IRA Home Energy Rebates Enable Virtual Power Plants

The Inflation Reduction Act’s Home Efficiency Rebates (HOMES) and Home Electrification and Appliance Rebates (HEAR) provisions will help tens of millions of households make their homes more energy efficient. They will save consumers money and make their homes more comfortable, but it has the potential for so much more — by enabling virtual power plants (VPPs), it can help the grid decarbonize while making it more resilient, affordable, and equitable.

As customers adopt heat pumps, other home electrification technologies, and implement holistic home retrofits, they can support the evolution of VPPs to make investments go further, increase bill savings, and support the grid by reducing building energy use during times of peak grid demand.

As states, tribes, and territories implement the home energy rebates, they have the option of utilizing a market-based approach based on measuring actual efficiency gains. This approach, known as the measured approach, provides a foundation for VPPs to reduce peak demand, improve grid reliability, and reduce infrastructure costs.

Please join RMI and the Flex Coalition on Thursday, June 13th, from 2-3 p.m. EST to learn about the intersection of VPPs and the IRA’s home energy rebates. Industry stakeholders and policy experts discuss how investments in energy efficient homes and buildings can prepare the industry for flexible energy management and create more resilient and responsive homes.