Department of Energy Affordable Home Energy EarthShot

The U.S. Department of Energy's (DOE) Affordable Home Energy Shot is the eighth and final initiative in a series aimed at reducing energy costs for American households while advancing the transition to clean, energy-efficient homes. As part of DOE's broader Earth Shot effort, this initiative targets a 50% reduction in both the total and upfront costs of making homes more energy-efficient within the next 10 years. The goal is to ensure that all Americans, particularly low- and moderate-income (LMI) households, can benefit from clean energy technologies and healthier living environments while addressing the financial strain of rising energy costs.

The Affordable Home Energy Earth Shot combines technological innovation, policy development, research, and investment to transform the U.S. residential energy market. Key collaborators include national laboratories (such as the National Renewable Energy Laboratory, Lawrence Berkeley National Laboratory, Pacific Northwest National Laboratory, and Oak Ridge National Laboratory), state and local governments, private industry, and nonprofit organizations, working together to deploy advanced energy-efficient technologies. Key components of the initiative include:

• Advancing R&D: Focused research will accelerate the development of innovative building technologies. This includes advanced insulation materials like vacuum-insulated panels, aerogels, and phase-change materials that improve thermal performance and reduce energy consumption. Research will also focus on next-generation heating and cooling systems, such as air-source heat pumps and thermally activated building systems (TABS), which are more energy-efficient than traditional systems. Building-integrated photovoltaics (BIPV) and energy-efficient appliances like smart water heaters will also be developed to further reduce overall energy demand while promoting commercialization that help lower their cost.

• Supporting Workforce Development: The initiative emphasizes creating a skilled workforce for installing and maintaining these technologies. Certification programs for energy auditors, passive house professionals, and HVAC installers, among others will help prepare workers for the demand of clean energy systems. Additionally, training programs will support the transition of legacy energy workers into clean energy roles, ensuring an equitable and high-road workforce transformation.

• Public-Private Partnerships: Public and private sector collaborations are key to scaling energy-efficient technologies. Government incentives, tax credits, and streamlined regulations will lower barriers to market entry for emerging technologies. Private companies will provide capital for large-scale deployment, ensuring cost-effective solutions reach the market more quickly.

• Incentives and Financing Options: The initiative will expand access to performance-based incentives, tax credits, and low-interest loans to help homeowners afford energy-efficient upgrades especially in underserved communities. Financing models like Property Assessed Clean Energy (PACE) programs will allow homeowners to finance energy improvements through property taxes, ensuring that upfront costs are not a barrier to adoption.

The initiative’s three pillars (advanced building envelopes, beneficial electrification, smart controls) represent key technical pathways to decarbonizing more than 90% of U.S. residential buildings, which are comprised of single-family, multifamily, and manufactured homes:

1. Advanced Building Envelopes: Innovative implementations will be focused on improving insulation, air-tightness, and overall thermal performance. High-performance materials such as spray foam insulation provide significantly better energy efficiency. Smart windows that use electrochromic or thermochromic technologies allow dynamic control over solar heat gain, reducing the need for heating and cooling and improving comfort while promoting passive survivability during grid disruptions.

2. Beneficial Electrification: High-efficiency electricity-based heating and cooling systems, such as air-source and ground-source heat pumps, offer alternatives to traditional fossil fuel-based systems. These systems have higher coefficients of performance (COP), delivering more heating or cooling per unit of electricity consumed. In addition, integrating on-site solar photovoltaic (PV) systems and energy storage (e.g., lithium-ion batteries, hot water storage) should enable homes to reduce grid dependence, lower energy bills, and enhance resilience during power outages.

3. Smart Controls: Deployment of energy management systems (EMS) will focus on optimizing energy consumption using real-time data from smart thermostats, occupancy sensors, and automated lighting systems. These systems can help adjust heating, cooling, and lighting based on homeowner behavior, weather conditions, and grid conditions. Additionally, homes equipped with grid-interactive technologies can participate in demand response programs, supporting grid stability and earning incentives for reducing energy usage during peak demand periods that bolster the affordability of energy efficient homes.

The Affordable Home Energy Earth Shot provides a comprehensive framework for decarbonizing the U.S. residential sector. By advancing building technologies, promoting clean energy solutions, and fostering a skilled workforce, the initiative aims to lower energy costs, improve comfort, and accelerate the transition to clean energy across the nation. The success of this effort will lead to more resilient homes, lower energy bills, and healthier living environments for all Americans.