The Training for Residential Energy Contractors (TREC) grant program was established by Section 50123 of the Inflation Reduction Act (IRA). The U.S. Department of Energy (DOE) oversees the administration, requirements, and funding associated with the TREC grant. Minnesota was awarded $2.8 million through November 2028. DOE defines residential energy contractors as businesses, non-profits, and individuals that provide residential energy efficiency, electrification, and other energy services.
The Training for Residential Energy Contractors (TREC) Grant was awarded to Minnesota to provide comprehensive training programs to support a growing and skilled residential energy contractor workforce. Minnesota’s approach included solicitation of public input through a Request for Information and an advisory group that will continue to provide feedback throughout the grant term.
Minnesota will use these funds to achieve the following goals:
- Increase the skills of qualified residential energy contractors to meet the growing demand for energy efficiency upgrades in Minnesota. This demand surge is driven by state and federal rebates, along with increasing consumer interest.
- Address technical gaps and industry best practices in contractor training.
- Support entrepreneurship and business development.
- Integrate workforce pipelines into training program recruitment.
Minnesota’s Program Design
Tribal Set-Aside
Minnesota has committed funds to deliver training to the 11 Federally Recognized Tribes in Minnesota. Commerce staff will consult and collaborate with the Tribal Advocacy Council on Energy (TACE) to develop the Tribal Set-Aside program parameters, including contracting, management, and reporting.
Tribal applications will be accepted over a period of 12-months on a rolling basis. Fund pooling and partnership are encouraged. Unused funds will be reallocated to active projects after the application period closes.
A Tribal Set-Aside Pre-Award Application is slated to open in July 2025. Commerce will notify Tribes when the application is available.
Contractor Entrepreneurship Pilot
The remainder of the funds will support a Contractor Entrepreneurship Pilot (CEP) program. The pilot program will be developed through a competitive Request for Proposals selection process. The selected organization(s) will provide business development services and skills training to encourage entrepreneurship and capacity building among residential contractor businesses.
This grant will launch a Contractor Entrepreneurship Pilot (CEP) creating lasting outcomes through:
- Reducing the cost of training contractors and their employees.
- Providing testing, licensing, certifications, business set up, recruitment.
- Upskilling current workers and supporting professional growth.
- Partnership to develop a workforce program that attracts and trains workers to deliver energy efficiency programs.
The Contractor Entrepreneurship Pilot Request for Proposals is set to be released Summer 2025.
Resources
Training for Residential Energy Contractors Administrative and Legal Document