Wisconsin launched heat pump rebates faster than any state — then stopped short of rate reform
From plan publication to national-first program launch in 28 months. But the rate schedules that determine what customers pay every month haven't changed at all. Rebate velocity is high. Rate design velocity is zero.
Programmatic Action — 8 milestones in 36 months
April 2022
Clean Energy Plan published
Wisconsin's first CEP — blueprint for 100% carbon-free electricity by 2050
2022
Oneida Nation Tribal Residential Energy Program
Heat pumps included alongside furnaces, boilers, weatherization, solar. Template for statewide IRA deployment.
May 2024
HOMES + HEAR applications submitted to DOE
$149M in Home Energy Rebate funding requested. Delivery through Focus on Energy® (existing infrastructure).
August 2024
Communities of Focus framework established by PSC
Identifies areas with high energy burden, high LMI %, high renter %. Pilots launched in underserved areas.
August 2024
HOMES Program launched — first state in the nation
Up to $10,000/household for whole-home energy-saving improvements including heat pumps.
First in Nation
November 2024
Beneficial Electrification Definition Order
PSC Docket 5-FE-104. Shifted from site energy to source energy accounting — makes heat pumps look better vs. gas in cost-effectiveness tests.
December 2024
HEAR Program launched
Up to $14,000/household for heat pumps and electric stoves. Income-qualified. LMI-targeted.
July 2025
Wisconsin one of five states with both HOMES + HEAR open
Both programs operational and enrolling customers through Focus on Energy®.
Top 5 Nationally
↕ The Gap
Everything above addresses upfront equipment cost. Nothing below addresses ongoing operating cost — the monthly bill a customer pays after the rebate is spent. This gap is where the affordability tension lives.
Rate Design Action — 0 milestones
Not started
Heat-pump-specific electric rate
No tariff exists at WPSC or WE Energies. EV-specific rates exist (COEV-R, EV-R) but no heating equivalent.
Does Not Exist
Not started
Winter heating demand response
BYOD smart thermostat program limited to June–September. Zero winter heating DR despite cold climate.
Does Not Exist
Not started
LMI-specific electric rate or discount
No income-qualified rate in either utility's tariff. Rate design is entirely income-blind.
Does Not Exist
Not started
Rate reform linking electrification to affordability
PBR investigation ongoing. Energy Burden Metrics Report completed. No rate order issued.
Does Not Exist
8 milestones
Programmatic actions completed in 36 months. From CEP publication to operational rebate programs — including a national first on HOMES.
0 milestones
Rate design actions completed. No heat pump rate, no winter DR, no LMI discount, no rate reform. The tariff is unchanged.
Rebates address the upfront cost of conversion. Rate design addresses the ongoing cost of operation. Wisconsin solved the first problem. The second remains untouched.
Energy Burden Metrics Report (late 2024) and Action Study (early 2025) suggest the PSC recognizes the gap. Performance-based regulation investigation is ongoing through Docket 5-EI-158. But no rate order has been issued.
Sources: CEP publication — WI OSCE, April 2022. Oneida program — CEP 2024 Progress Report, p.28. HOMES/HEAR application — CEP 2024, p.18. Communities of Focus — CEP 2025, p.18, PSC order Aug 2024. HOMES launch (first in nation) — CEP 2025, p.19-20. Beneficial Electrification Order — CEP 2025, p.18, Docket 5-FE-104, Nov 2024. HEAR launch — CEP 2025, p.20. HOMES+HEAR status — CEP 2025, p.19. Rate design absence confirmed by full review of WPSC PSCW Vol. 7, Amendments 800-802, and WE Energies 2026 Rates Brochure. BYOD seasonal limitation — WPSC Sheet E5.10: "Applicable only for service during June, July, August, and September." PBR investigation — CEP 2025, p.18, Docket 5-EI-158.