Market Transformation Plan Background and Requirements
To ensure that state programs facilitate market transformation, sections 3.3.1 and 4.3.1 of the Department of Energy's Program Requirements for Home Energy Rebates state that states submit a Market Transformation Plan within the first year after receiving the financial assistance award. Plans must be submitted for both the Home Efficiency Rebates Program (Sec. 50121) and Home Electrification and Appliance Rebates Program (Sec. 50122). The DOE must review and approve the Market Transformation Plan prior to the State receiving the third tranche of funds.
A Market Transformation Plan must:
- Describe how the State program will enable the market to recognize the value of homes that have been upgraded through the Home Energy Rebates, including at time of sale/rental. At a minimum, the plan must include a strategy for aggregating home data from the home assessment (as described in 3.2.2) and/or home certification (as described in section 3.2.6) and making such data available to real estate stakeholders.
- Describe elements of the program design and/or activities the State program will undertake to support the following goals throughout the program as well as after depletion of the Home Efficiency Rebates funds:
- Cost sharing, braiding, and/or coordinated financing with potential funders and financiers of home energy upgrades. Funders and financiers of upgrades include homeowners, lenders of home upgrade loans, mortgage brokers, utilities, and philanthropies.
- Utilize rebate programs to enable new business models in partnership with private capital to monetize grid benefits through vehicles such as Federal Energy Regulatory Commission (FERC) order 2222, demand management, and virtual power plants.
- Consider sustainable business models of home energy contractors.
States can use following template from Pearl Certification, with suitable modifications, to meet the requirements for submitting a Market Transformation Plan for both the Home Efficiency Rebates Program (Sec. 50121) and Home Electrification and Appliance Rebates Program (Sec. 50122).
