Millions of dollars are available in federal and state energy rebates. How can you take part?

By Andrew Hazzard | Sahan Journal

This story comes to you from Sahan Journal through a partnership with MPR News.

Environmental justice organizers from a nonprofit serving Minnesota’s Latin American immigrant community prepared tamales on induction cooktops and talked about lowering energy bills and greenhouse emissions at a recent event in St. Paul.

Cooking with gas is the norm for many Minnesotans, especially those from Latin America. But emissions from gas stoves are linked to health issues and contribute to global warming by burning fossil fuels. Induction ranges offer powerful cooking heat from electricity, which is kinder on outdoor and indoor air quality.

COPAL (Comundidades Organizando el Poder y la Acción Latina) wants Minnesota’s Spanish-speaking community to know about programs that can help them switch to healthier, more environmentally friendly options like induction stoves, said environmental justice organizer Melody Arteaga.

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The cooking events seek to dispel the myth that electric stoves aren’t as good for cooking as gas, and to inform people about how they can take advantage of new benefits aimed at transitioning to clean-energy technologies.

“People were really interested to learn — how do we save money and how is that related to our health,” Arteaga said.

The federal Inflation Reduction Act of 2022 and new state benefits approved by the Minnesota Legislature in 2023 offer Minnesotans savings in the form of direct rebates or tax credits on everything from electric vehicles to solar panels, from insulating their attics to swapping out gas stoves for induction ranges.

Navigating the dozens of incentives and programs isn’t simple. But groups across the state are working to make the clean-energy transition as easy as possible, and to ensure that no one gets left behind.

“Everyone is scrambling to have answers for people,” said Julia Nerbonne, executive director of Minnesota Interfaith Power and Light, a nonprofit working to help people connect with cost- and energy-saving benefits.

Navigating benefits

The Inflation Reduction Act and various state and utility-backed programs are enabling Minnesotans to score the clean-energy win-win: lowering emissions and saving money by installing more efficient, more electricity-dependent appliances, vehicles and heating sources.

As the electrical grid becomes more fueled by renewable and carbon-free energy sources, there is an increased environmental benefit to swapping out gas stoves for induction stoves or primarily heating a home with a heat pump instead of natural gas. Benefits can also go toward buying a new or used electric vehicle and adding insulation or upgrading windows to make a home or building more energy-efficient.

Most programs pay out larger benefits to families with lower incomes, with a goal of encouraging everyone to make improvements.

When the Inflation Reduction Act was enacted, Minnesota’s Clean Energy Resource Teams got to work. The teams are a partnership among University of Minnesota Extension, the Minnesota Department of Commerce, the nonprofit Great Plains Institute and the Southwest Regional Development Commission. The partnership has regional offices statewide, and is a resource for individuals, organizations, and local governments looking to make clean energy improvements.

It launched its Inflation Reduction Act guide in 2022 and has compiled a list of programs and resources and a savings calculator to help Minnesotans plan improvement projects. The partnership also launched a program known as Inflation Reduction Act Ambassadors that recruits people statewide to tell their friends and neighbors about energy benefits. The program was recently rebranded as Community Energy Ambassadors.

“We really want Minnesotans to better understand clean-energy topics and incentives, not just the [Inflation Reduction Act],” said Shaylyn Bernhardt, communications manager for Clean Energy Resource Teams.

Benefit breakdown

Peter Lindstrom, Clean Energy’s regional manager of public sector and community engagement, breaks down how Minnesotans can get the most out of those programs. At a May 8 information session, he explained how families can stack new benefits to plan projects to make their homes more comfortable and energy-efficient.

The federal Energy Efficiency Home Credit offers a 30 percent tax credit with an annual cap of $1,200 per household, but has been expanded to include an additional $2,000 cap toward heat pumps, an electrically powered way to heat and cool buildings. The credit can go toward appliances, insulation and windows.

Minnesota has its own state heat pump program that can supplement the federal incentive.

“You can plan out your improvements year by year knowing that this credit is in place,” Lindstrom said.

Two new federal rebate programs are expected to be rolled out in Minnesota near the end of the year. Unlike tax credits, which are redeemed through once-a-year filings with the Internal Revenue Service, rebate programs offer direct savings upfront. Both programs encourage users to get a home energy audit.

Most residents of the Twin Cities metro area can get home energy audits via the Home Energy Squads, a service provided by Xcel Energy, CenterPoint Energy and the Center for Energy and Environment. Visits cost $100, with discounts available in most cities and free audits for income-qualified households. People interested in using the programs should try to schedule an energy audit now while waiting for the state Commerce Department to launch the programs, Lindstrom said.

The audits are helpful because the Home Efficiency Rebates offer discounts based on energy savings. If your improvements will decrease energy usage by 20 percent, you get $2,000. For 35 percent energy savings or more, it rises to $4,000. Benefits double for those who qualify as low to moderate income.

Minnesotans can see where they fall on their area median-income scales using this tool from the Commerce Department. In Hennepin County, a family of four earning up to $186,000 would be eligible.

The Home Electrification and Appliance Rebates are specifically for low- and moderate-income households, with some funding going directly to Tribal Nations. Households earning less than 80 percent of the area median income—$97,800 for a family of four in Hennepin County—are eligible for 100 percent rebates on energy-efficient appliances. Those in the 80 to 150 percent area median-income range can receive a 50 percent rebate.

Lindstrom gave an example: A family of eight in Worthington, in southwestern Minnesota, earning $115,000 annually would be eligible for up-front discounts of 50 percent for electrification costs up to $14,000.

“It’s a very healthy incentive,” he said.

Federal incentives are bolstered by Minnesota’s own credit and rebate offers. Minnesotans can apply for pre-weatherization funds that can help update old homes to prepare them to take advantage of Inflation Reduction Act rebates and credits. State rebates for electric and plug-in hybrid electric vehicles can be stacked with federal incentives, offering discounts on new and used cars that qualify.

Ahorrar es cuidar: Saving is caring

For Arteaga, the COPAL environmental justice organizer, it is important that Minnesota’s immigrants are able to access the benefits of the Inflation Reduction Act.

“Ahorrar es cuidar”— “saving is caring” in Spanish—is the name of COPAL’s campaign to inform Spanish-speaking Minnesotans about the federal law and ways they can take advantage of the various rebates. Their message: Saving money can help take care of the planet.

“When we frame it as trying out ways to save money, that’s a great way to connect to our community,” Arteaga said.

COPAL directs people to the Clean Energy Resource Team’s guide, which includes a Savings Calculator tool from Rewiring America and a full Spanish-language toolkit on taking advantage of the Inflation Reduction Act produced by Alianzas Americas, a Chicago-based nonprofit.

COPAL is spreading the word on Spanish-language radio stations, and even placed an ad on Telemundo. That’s a big deal for many Latin American immigrant households, Arteaga said: If it’s on Telemundo, your mom will see it. They’ve also held community events in Minneapolis and Kasson, in southeast Minnesota.

Room for renters

The Inflation Reduction Act has a smorgasbord of benefits for homeowners, businesses, nonprofits and local governments, but there are fewer clear benefits for renters.

“It’s going to be indirect, because the [federal act] is for homeowners,” said Joshua Lewis, who is leading Inflation Reduction Act efforts for Interfaith Power and Light.

Lewis is leading Interfaith’s work to recruit community members who can help plug neighbors and friends into clean-energy benefits and ways to take advantage of state and federal programs to help them save money and lower their carbon impact. The work is supported by a $10,000 seed grant from Clean Energy Resource Teams. The organization is using its connections to houses of worship across the state to spread the word.

Interfaith Power and Light is trying to engage more renters to raise their voices in energy debates. The group is part of the Just Solar Coalition, which aims to give low-income and diverse residents a seat at the table at debates before the Minnesota Public Utilities Commission. The coalition helped lower a proposed Xcel Energy rate increase last year.

“This is something that you do have a say in,” Lewis said.

People of color are more likely to rent than white Minnesotans. Just 38 percent of Minnesotans of color own homes, compared to 77 percent of white residents, according to a report from the Minnesota Homeownership Center.

But renters can get discounts on portable electric appliances that can travel with you in a move, like countertop induction burners and ovens, space heaters, and smaller window-unit air conditioning heat pumps. Although landlord approval may be required, renters who are income-eligible could have new induction stoves installed free of charge after rebates.

Renters are also eligible for electric and plug-in hybrid electric vehicle rebates.

Interfaith Power and Light is also working to get renters signed up for community solar gardens, which give credits to members who can’t install solar on their residence that can amount to a 30 to 50 percent utility bill savings.

“When we have a more engaged public, we have more people taking advantage of these opportunities,” Lewis said.

Helpful Resources

Rewiring America’s energy savings calculator can help you figure out what benefits you are eligible for, with insights for homeowners and renters, available in English and Spanish.
The Minnesota Clean Energy Resource Team’s Guide to the IRA has a helpful breakdown of federal and state programs for households and organizations.
The Minnesota Department of Commerce has a helpful collection of state energy rebate and grant programs for consumers, schools, and businesses.
The Minnesota Department of Commerce home energy guide offers a range of tips to lower energy costs and reduce emissions, from simple changes to advice on larger projects.
Alianza Américas tiene una caja de herramientas para acogerse a los beneficios de la Ley de Reducción de la Inflación en Español.