Since it launched in May, only about 1,400 Indiana residents have completed applications to save money on things like water heaters and insulation.
These programs are new territory for states — and Indiana is actually ahead of many others.
Indiana is one of only five states that’s fully launched its rebate program with funding from the federal Inflation Reduction Act. Another seven states have made money for energy-efficient appliances available, but not whole-home retrofits.
Former state senator Jon Ford heads Indiana's Office of Energy Development. He said, for doing hardly any marketing, the agency is happy with the enrollment numbers and feels it's on track to award all the money within three years.
“This is a new program and we are — I don't want to say building it as we're driving it — but we are constantly looking at ways to improve this program as we move along," Ford said.
Ford said the OED has tentatively planned to start a larger marketing campaign early next year. The OED is also currently assessing more than 170 multi-family complexes, like apartments, for energy efficiency upgrades.
Ford said the state is looking for a way to help residents whose homes don't qualify for upgrades because they're currently unsafe due to issues like mold.
Getting everyone on the same page takes time, experts say
Getting rebate programs off the ground can be a challenge.
Therese Dorau is with Indiana University’s Environmental Resilience Institute, which is working to educate Indiana cities about heat pumps — a more energy efficient alternative to furnace and air conditioner.
“We saw concerns about the upfront costs of paying for upgrades, but then we also saw concerns about the burden of enrolling in programs or proving household income," she said.
In fact, the OED said another 1,500 people have started applications for the home energy rebate program, but not finished them. Some enrollees are required to submit a year's worth of utility bills.
Emily McPherson is with the Center for Energy and Environment, which helped roll out a program for heat pumps in Minnesota. McPherson said implementing these programs well takes time. You have to make sure contractors can not only install heat pumps, but understand how it benefits their customers.
“The efficiency industry gets excited about a new technology, and you roll out a rebate and you make customers aware. Now that customer gets excited and they go to get a quote, they might get talked out of that particular technology," she said.
McPherson said we’ll likely see enrollment numbers grow as people become more familiar with the program.
Applying for the program could have benefits outside the rebates
Dorau said, even if you don't plan to take advantage of the rebates, it's smart for residents to go through processes like the Indiana Energy Saver application.
"It's always best to be able to plan ahead. Just like you would say, 'Okay, my car has 200,000 miles on it. I need to be saving up for a new car. I can start shopping. I can start looking at whether an electric vehicle would be right for me.' It's better to do that in advance of having an emergency situation where you need to make a big financial decision right away," she said.
Residents who want to apply for the rebate program can visit IndianaEnergySaver.com. Ford said the program can also assist people with their applications. Bloomington recently launched its own program where volunteers help residents make energy upgrades.
Dorau said some residents can access additional funding for upgrades through their utility, credit union or the Indiana Energy Independence Fund.
Rebecca is our energy and environment reporter. Contact her at rthiele@iu.edu or follow her on Twitter at @beckythiele.