Helping IRA Rebate Funding Reach Rural Communities

As states continue implementing Inflation Reduction Act (IRA) Home Energy Rebates programs, many are focused on the same goal: connecting funding with the households it was designed to support.

For rural communities, that goal comes with unique challenges. Residents may live farther from service providers, have fewer contractor options, face limited internet access, or be less likely to encounter traditional outreach campaigns. At the same time, many rural households live in older homes with aging systems and higher energy costs.

As programs launch, engagement often concentrates in areas where awareness is higher, contractors are readily available, and existing networks are already in place. While that can help launch early participation, states need to make sure funding reaches rural and underserved communities as well.

As states work through program planning and implementation, they need to focus on three key questions:

  1. How do we identify communities with the greatest need? 
  2. How do we connect with residents who may not engage through traditional outreach channels? 
  3. How do we build contractor networks that can deliver services in hard-to-reach areas?


Use Data to Identify Communities With the Greatest Need

A strong outreach strategy starts with understanding where eligible households are located and what barriers may prevent participation.

States have access to a wide range of data sources that can help create a clearer picture of community needs. GIS mapping tools, U.S. Census Bureau data, utility information, housing data, and energy burden indicators can help identify areas where residents may be eligible for rebates but less likely to participate without targeted outreach.

Identifying these communities often starts with asking a few important questions:

  • Where are low-income households concentrated?
  • Which communities have older homes?
  • Where are households experiencing higher energy costs relative to income?
  • Which areas have limited contractor coverage?
  • Where might transportation, broadband, or internet access be limited?

States may also benefit from working with utility providers and existing assistance programs to better understand where eligible households are located. Utility data can help identify households with high energy burdens and significant energy usage, while programs such as the Low Income Home Energy Assistance Program (LIHEAP) and Low Income Household Water Assistance Program (LIHWAP) already serve many of the populations eligible for rebates. Data-sharing agreements and coordinated outreach efforts can help states identify potential participants more efficiently and reduce barriers to enrollment.


Reach Residents Through Trusted Community Networks

Even the best-designed program will struggle if residents do not know it exists.

Digital outreach plays an important role, but it may not reach everyone. Some rural households have limited access to high-speed internet, while others rely on local organizations and community networks for information.

To expand participation, states may benefit from a mix of traditional and digital outreach methods, including:

  • Targeted digital advertising
  • Social media campaigns
  • Direct mail
  • Utility bill inserts
  • Local media
  • Community workshops
  • In-person events
  • Educational sessions hosted by local organizations

Just as important as the outreach method is the messenger. Many residents place greater trust in organizations that already serve their communities.

Community action agencies, housing authorities, local nonprofits, utilities, faith-based organizations, and existing assistance programs such as TANF, SNAP, and Weatherization Assistance Program (WAP) often have established relationships with households that may qualify for assistance. 

These organizations understand local needs and have firsthand knowledge of the challenges residents face when accessing programs and services. Their involvement can help identify underserved populations, shape outreach efforts, and connect funding with households that may otherwise be overlooked.

Partnerships with these organizations can help states:

  • Share program information with eligible households
  • Distribute multilingual outreach materials
  • Assist with application completion
  • Host community events and enrollment clinics
  • Connect residents with additional assistance programs


Build Contractor Networks That Can Serve Rural Areas

Outreach may create awareness, but participation ultimately depends on a contractor’s ability to complete the work.

In many rural communities, contractor availability can become one of the biggest barriers to program success. Residents may qualify for rebates and be interested in participating, but projects can stall if qualified contractors are unavailable or unwilling to serve remote locations. 

Before launch, states should determine whether enough contractors are available to serve the communities they want to reach. Identifying gaps early can help guide recruitment and outreach efforts before demand begins to grow.

Strategies may include:

  • Recruiting contractors in underserved regions
  • Providing training and onboarding support
  • Offering technical assistance related to program requirements
  • Reducing administrative burdens where possible
  • Evaluating incentives for service in remote communities
  • Encouraging partnerships between contractors and local organizations

Some states may also consider incentive structures that help offset the challenges of serving rural areas, such as longer travel distances, workforce constraints, or lower project density. When more contractors are willing to work in rural communities, more residents can participate in the program.

States may also need to think about how to strengthen the local workforce over time. Training opportunities for contractors, energy auditors, and other program-related roles can help expand local capacity, address long-term service gaps, and create a stronger foundation for future energy and resilience initiatives.


Looking Ahead

Getting rebate funding into rural communities starts with understanding where needs exist and removing barriers that may prevent participation. 

Data can help identify underserved areas, but local organizations play a critical role in helping states reach them. Their relationships, credibility, and understanding of local challenges often help turn awareness into action.

When combined with strong contractor networks and workforce development efforts that build long term capacity, states can extend the reach of IRA rebate programs into communities that might otherwise be overlooked.

BDO Government Services supports agencies throughout the program lifecycle, helping design, implement, manage, evaluate, and close out federally funded initiatives. Drawing from experience supporting more than $127 billion in federal programs, our teams bring together program management, stakeholder engagement, data analytics, compliance oversight, contractor management, workforce development, and performance reporting to help states build sustainable program infrastructure and strengthen the impact of IRA investments.