The United States government has just passed its most consequential bill ever to fight climate change. In it is a provision called HOMES that will provide $4.3B in rebates to incentivize residential energy efficiency improvements. Pearl Certification will have a critical role to play in the implementation of this rebate program.


About HOMES and its $4.3B in residential rebates

We’ve provided a HOMES rebate overview below. In particular, we call your attention to the language in bold and italics, which by law requires a certification with every rebate.

  • Legislative citation: Home Energy Performance-based, Whole House Rebates beginning on p.573 of the Inflation Reduction Act

  • $4.3 billion appropriated fiscal year 2022 and the funding is available through 2031

  • The funding will be granted from the US. Dept. of Energy to state energy offices through the established channel of the State Energy Program

Homes Act Snippet

  • See p.575 of the IRA for the certification requirement:

    “For quality monitoring, each rebate must be documented in a certificate that,
    • Is provided by the contractor and certified by a third party to the homeowner

    • Details the work performed, the equipment and materials installed and projected energy savings to support accurate valuation of the retrofit”

  • The rebate requires modeled energy performance in accordance with BPI 2400 for projected energy savings or measured and verified energy savings post-retrofit

  • The rebate can be given directly to the homeowner or to an aggregator (a program administrator or contractor who would then discount the installation by the rebate amount)

  • These are the rebate amounts:
    • For upgrades achieving 20% - 34% energy savings, $2000 or up to 50% of the project costs

    • For upgrades achieving 35% or greater savings, $4000 or up to 50% of the project costs

    • States can increase these amounts for income qualified homes

Pearl's Role

Pearl's role in the implementation of HOMES rebates

Pearl Certification has spent years developing a credible, high-performing home certification system that is accepted by industry gatekeepers like the US Dept. of Energy, the National Association of REALTORS, and the Appraisal Institute.

Pearl’s proprietary system and platform was first developed in 2015 with the assistance of national labs and subject matter experts. Pearl’s certification was developed for existing homes, and currently no other business or nonprofit provides a certification for the 110 million existing homes in the US today. We designed our certification to help homeowners recoup the value of their home improvement investment through an increase in home equity, a key component mentioned in the HOMES description of the required certification. In fact, Pearl has commissioned multiple appraiser studies, and they have found our certification adds 5% on average to a home’s value at resale.

Pearl has certified close to 100,000 homes and is included in the Real Estate Standards Organization data dictionary for multiple listing services as a data field.

Pearl Certification is the most cost effective and efficient choice for meeting the certification requirement for HOMES given that our technology is built for scale, and our certification is the accepted standard for the HVAC, solar, insulation, and real estate industries.

Lastly, Pearl’s leadership team is staffed by subject matter experts who are well respected as energy efficiency thought leaders and trusted by federal program administrators. We have sought and gotten approval from the US Dept. of Energy to be a national sponsor for their Home Performance with ENERGY STAR program for which we provide a certification. We are the only sponsor who can administer this program nationwide. In fact we have already established precedent as a government standard for home certification: the state of Missouri uses Pearl for its home certification standard.

What happens next

Pearl’s leadership team has experience with a scaled down version of the IRA when they worked with the federal government’s State Energy Program during the Obama administration’s stimulus days. Based on current knowledge and past experience, we have developed a plan for outreach to government entities and utility program implementers who might provide program administration to states and large cities. In fact, Pearl’s Public Private Partnerships division (P3) was already meeting with 25+ state energy offices as a part of our outreach on Infrastructure programs to drive energy efficiency. The largest utility program implementers (CLEAR, ICF, and Franklin Energy) are either working with Pearl already or are discussing with us ways to do so.

We estimate that the first state programs will begin offering HOMES rebates in Q1/Q2 2023. It is to the administration’s electoral advantage for the US Dept. of Energy to finalize the rules swiftly so that the money can begin flowing to the states and ultimately to homeowners.

Contact Us

We are raising capital: Contact us to learn more

Pearl Certification is much more than a certification program for the IRA. We are simultaneously driving market transformation and creating the digital assets needed for it. Our platform links homeowners, contractors, real estate agents, appraisers, lenders, ecommerce providers and other service professionals to the home, its data, and future transactions.

With the passage of the IRA, Pearl will need to move swiftly to staff up our P3 division and to accelerate our tech roadmap to reinforce our value proposition for states and localities.

Our cap table includes Ferguson Ventures (largest distributor in the US), Exelon (multistate utility), Second Century Ventures (Nat. Assoc. of REALTORS investment arm), and Clean Energy Ventures (impact investor who led our Series A). Our strategic investors will not only provide funding for the company, they will also promote Pearl as the standard for HOMES certification.

We are raising capital and have a term sheet in hand. If you are interested in participating in our round, the time is now.  Schedule time with Cynthia Adams, Pearl’s Co-founder CEO here.

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Cynthia Adams CEO

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