Eyes on Utility Rebates
Developing Capital Stacks with Limited Biden-Era Funding for Green Retrofits
By Ravi Malhotra
3 min read
The Trump administration is working to reclaim a significant portion of the clean energy and infrastructure funding established through the Inflation Reduction Act and the Bipartisan Infrastructure Law (IRA/BIL). This effort limits the funding surge for energy efficiency, electrification, solar, storage, and other green solutions for multifamily affordable housing, rendering them entirely unavailable.
Trump’s initiatives have triggered a wave of litigation and created considerable uncertainty for the awardees chosen to spend IRA/BIL funds in communities, including multifamily affordable housing. As a result, funding availability varies significantly across the U.S. For instance, some states have initiated their IRA-funded Home Energy Rebate Programs for efficiency and electrification, with Michigan being a recent example. In contrast, others have yet to receive their allocations or are hesitant to launch due to perceived risks and a lack of guidance. The $7 billion Solar for All program, one of the Environmental Protection Agency’s Greenhouse Gas Reduction Fund (GGRF) subprograms, is now operational. Still, the remaining $20 billion from GGRF is under review by the EPA’s acting inspector general. Additionally, Republicans in Congress are considering the repeal of federal tax credits for renewables and energy efficiency.
In some markets, multifamily property owners and managers can still access IRA/BIL resources to offset their capital costs for green upgrade projects. However, in areas where funding has stalled, multifamily owners must focus on financial resources predating IRA/BIL. These include utility demand-side management programs, older federal initiatives, such as the Community Development Block Grant (CDBG), state-funded programs like California’s Solar on Multifamily Affordable Housing, and foundations and nonprofit financiers, including Community Development Financial Institutions (CDFIs), among others.
Utility programs are the primary drivers of energy savings in most states, and some have effective, replicable models for holistically serving multifamily housing. For example, Rocky Mountain Power’s (RMP) Wattsmart Multifamily Program in Utah brings HVAC, appliance, window, and building shell improvements to nearly 10,000 housing units annually and offers larger incentives for affordable housing. Program administrators provide a one-stop shop and a single point of contact for customers, and they are compensated based on the energy savings they achieve.
One recent project is Trolley Lane House, a 17-unit transitional housing property owned by a local nonprofit. The scope of work included 31.45 kW of rooftop solar alongside 40 kWh of battery storage. All units and common areas were upgraded with EcoBee smart thermostats, heat pump-based HVAC systems, and central water heaters. The property will be nearly net zero, meaning it will consume almost as much electricity as it produces. Furthermore, the solar and storage solutions made the project eligible for enrollment in the WattSmart Battery Program, which provides an upfront rebate and ongoing bill credits for allowing RMP to plug the batteries into their grid. This will transform the property into a “virtual power plant” capable of producing and storing electricity for the wider grid. The project leveraged Community Development Block Grant funding, Solar Investment Tax Credits (ITC), and RMP rebates to finance it, covering 94 percent of the total costs.
Beyond some clear and present benefits of green solutions (e.g., reduced operating costs, improved property value, and greater return on investment), upgrades like Trolley’s can help multifamily properties remain resilient in extreme weather and power outages. Uncertainty extends well beyond Washington. Multifamily affordable housing stakeholders should evaluate all their options for low-cost green upgrades and can collaborate with the National Housing and Rehabilitation Association to get started.
