Free program, rebate or tax credit
| Source | How it works | Status |
|---|---|---|
| Weatherization Assistance Program | The Department of Energy funds states and local agencies that do the work free for eligible households. | Active, with income limits. Apply locally. |
| Utility and state rebates | A set amount toward air sealing, insulation or an energy audit, offered by an electric company, a state or a city. | Varies by place and year. Search before you hire. |
| Federal home improvement credit | A tax credit on a share of qualifying improvements, claimed on Form 5695. | Property placed in service after December 31, 2025. Ended. |
Source: IRS FS-2025-05 and U.S. Department of Energy, weatherization assistance, read October 10, 2026.
What up to 10 percent means in dollars
ENERGY STAR's figure is a ceiling that fits homes with leaks and thin insulation. Homes that are already tight save less. Take it as the top of a range, not a forecast. At each state's average 2025 bill, 10 percent of a year of electricity is:
| State | Average monthly bill | Up to 10 percent a year |
|---|---|---|
| Hawaii | $207.89 | $249 |
| Connecticut | $206.46 | $248 |
| Maryland | $184.42 | $221 |
| Alabama | $184.31 | $221 |
| Massachusetts | $181.08 | $217 |
| US average | $150.68 | $181 |
| Montana | $110.80 | $133 |
| Idaho | $110.36 | $132 |
| Colorado | $103.30 | $124 |
| Utah | $99.06 | $119 |
| New Mexico | $94.65 | $114 |
Source: ENERGY STAR, seal and insulate for the figure, and U.S. Energy Information Administration, Form EIA-861 (final 2025 data) for bills. The ENERGY STAR figure covers a household's annual energy bills, so a home that also heats with gas or oil will see part of the saving there.
A sensible order of work
- Get an energy audit. Many utilities offer a discounted or free one, and it shows where the air leaks and where insulation is thin.
- Seal air leaks first. Gaps around the attic hatch, pipes, wires and the rim of the house let conditioned air out. Sealing is cheap and works with every other step.
- Add attic insulation. The attic is often the easiest place to improve and the first target of most programs.
- Seal and insulate ducts that run through attics, crawl spaces or garages.
- Then look at windows and equipment. They cost more and save less per dollar than the steps above, so do them last unless they have failed.
Rebate rules to check before work starts
- Does the program need an audit or pre-approval before the work?
- Must the contractor be on an approved list?
- Does the rebate cap at a dollar amount or a share of cost?
- Do renters need the owner's permission, and are there rules for rental homes?
- How soon after the work is the rebate paid, and to whom?
To find programs, start with the ENERGY STAR rebate finder, your electric company and the DSIRE database. For a sense of what utilities pay in your state, see efficiency rebates by state.
Payback in plain terms
Source: Federal dates and program rules were read on October 10, 2026 from the sources at the end of the page. Rebate programs open, change and close often, so confirm every offer with the program before you buy. This is not tax or financial advice.
Sources and further reading
- ENERGY STAR, seal and insulate
- U.S. Department of Energy, how to apply for weatherization assistance
- IRS FS-2025-05, FAQs on sections 25C, 25D, 25E, 30C, 30D, 45L, 45W and 179D after Public Law 119-21 (Aug. 21, 2025)
- ENERGY STAR rebate finder
- DSIRE, Database of State Incentives for Renewables and Efficiency
- U.S. Energy Information Administration, Form EIA-861 (final 2025 data)
Frequently asked questions
How much can insulation and air sealing save?
ENERGY STAR says up to 10 percent on annual energy bills. Homes with big leaks save more, and tight homes save less.
Are there rebates for insulation?
Many utilities and states offer them, and the amounts differ. Search your ZIP code on the ENERGY STAR rebate finder and ask your electric company.
Is there still a federal tax credit for insulation?
The IRS says the home improvement credit does not apply to property placed in service after December 31, 2025.
What is the difference between weatherization rebates and the Weatherization Assistance Program?
The program is free work for eligible low income households. Rebates are offers from utilities and states that pay part of the cost for many households.