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Home Energy Rebates Update |
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Biden-Harris Administration Announces Arizona's Launch of First Phase of its Federal Home Energy Rebates Program Helping Lower Families’ Utility Bills |
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At Full Deployment, Eligible Arizona Homeowners Can Receive up to $14,000 Through the Home Energy Rebate Programs to Save Energy and Save Money on Energy-Efficient Home Upgrades
Supported by the Investing in America Agenda, Nearly Every State Has Said ‘Yes’ to Taking Advantage of the Rebates Programs, Delivering Home Energy Savings and Increasing Local Workforce Opportunities
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PHOENIX, ARIZ. — As part of President Biden’s Investing in America agenda, the U.S. Department of Energy (DOE) announced today that Arizona has launched its first federal Home Energy Rebates program, supported by the Inflation Reduction Act. Even more, Arizona is the second state in the nation to launch the Home Electrification and Appliance Rebates (HEAR) portion of the rebate program—enabling low- and middle-income households to save on energy efficiency improvements.
Arizona’s launch is part of the Biden-Harris Administration’s nationwide initiative to provide $8.8 billion in Federal funding for states, territories, and Tribes to lower energy costs and increase efficiency in American homes by making it cheaper to install cost-saving measures such as heat pumps, electrical panels, and insulation. These energy-saving measures will save American households up to $1 billion annually in energy costs and support an estimated 50,000 U.S. jobs in residential construction, manufacturing, and other sectors. These investments also advance the President’s Justice40 Initiative, which sets a goal that 40% of the overall benefits of certain federal climate, clean energy, affordable and sustainable housing, and other investments flow to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution.
“Arizonans know more than most the urgency of deploying energy efficient measures, like insulation and upgraded HVAC systems, so households across the state can slash their utility bills without putting people in danger of heat-related health impacts,” said U.S. Secretary of Energy Jennifer M. Granholm. “Arizona is one of the states leading the nation in building up their local workforce and keeping money in the pockets of their residents, all thanks to the Investing in America agenda.”
“Home energy rebates for clean and energy-efficient appliances and upgrades are good for the planet because they help cut pollution, but more importantly, they are good for Arizonan families because they will save money by lowering energy bills,” said John Podesta, Senior Advisor to the President for International Climate Policy. “Congratulations to Arizona for making these game-changing Inflation Reduction Act incentives available to their residents.”
Many Americans spend a large portion of their monthly income to heat, cool and power their homes, and in Arizona, 1 in 10 households are severely energy-burdened, with some of the lowest-income families in the nation spending upwards of 30% of their income on energy bills. Overall, by participating in the Home Energy Rebate programs, individual households could save up to $14,000 for energy-efficient home upgrades and hundreds more on monthly energy bills. To advance the objectives of these programs, DOE is requiring states and territories to allocate at least half of the rebates to low-income households, defined as those earning 80% or less of their area median income, which is expected to benefit many households in disadvantaged communities. States and territories must also submit Community Benefits Plans to ensure good jobs and other economic opportunities are available. To help keep consumers informed and equipped with resources, DOE recently released a Consumer Bill of Rights framework and is encouraging state, territorial and Tribal rebates programs to adopt it.
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Arizona’s “Efficiency Arizona” Home Energy Rebate Programs
Arizona is launching its HEAR program – one of two programs making up the Federal Home Energy Rebate programs - in two phases.
Initially, Arizona’s Efficiency Arizona (HEAR) program, in partnership with regional community action agencies, will focus on providing heat pumps under an air-conditioning replacement program addressing heat relief emergencies and/or financial hardships. At this stage, lower- and moderate-income owners of single-family homes facing extreme heat will be eligible for up to a $4,000 to $8,000 rebate on these new heat pumps. Later this fall, Arizona plans to roll out the remainder of its HEAR program, which will provide lower- and middle-income homeowners and renters with up to $14,000 in rebates to upgrade equipment and appliances. It will cover up to 100% of costs for lower-income families and up to 50% for moderate-income families (those earning between 80-150% of their area median income). They will be able to save up to:
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$8,000 for an ENERGY STAR-certified electric heat pump for space heating and cooling.
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$4,000 for an electrical panel.
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$2,500 for electrical wiring.
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$1,750 for an ENERGY STAR-certified electric heat pump water heater.
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$1,600 for insulation, air sealing, and mechanical ventilation products.
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$840 for an ENERGY STAR-certified electric heat pump clothes dryer and/or an electric stove, cooktop, range, or oven.
There is a second Home Energy Rebates program that Arizona will launch later. Under the Home Efficiency Rebates program, households can save money on measures that reduce whole-home energy consumption.
For more information on Arizona’s program, visit its Home Energy Rebates website.
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More States Get Ready for Rebate Launch
To date, DOE has awarded more than $1.6 billion to states to implement the federal Home Energy Rebate programs. Eleven states have received full funding from DOE to launch one or both rebate programs: Arizona, California, Hawaii, Indiana, Maine, Michigan, New Mexico, New York, Rhode Island, Washington and Wisconsin.
DOE continues to receive and approve funding applications for states, territories and Tribes to launch their programs. To date, 51 states and territories have applied to DOE for early administrative or full program funding.
DOE has also received full funding applications for one or both rebate programs from 26 states and territories: Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Hawaii, Illinois, Indiana, Maine, Massachusetts, Michigan, Minnesota, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Tennessee, Vermont, Washington, and Wisconsin.
The Inflation Reduction Act required states and territories to declare their intent to participate in the rebate programs by August 16, 2024. DOE received confirmation from 55 of the 56 states and territories that they plan to participate.
Each state is in charge of setting up and running its own program. You can check the status of your state’s program at energy.gov/save/rebates.
In the coming weeks, Home Energy Rebates are expected to become available in several more states, helping more American families save energy and save money with energy-efficient home upgrades. You can track state and territorial program launches on our website.
For more information on what you can do to save energy and save money, visit www.energy.gov/save.
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About Home Energy Rebates
On Aug. 16, 2022, President Joseph R. Biden signed the landmark Inflation Reduction Act. The law includes nearly $400 billion to support clean energy and address climate change, including $8.8 billion in Home Energy Rebates, which will provide two separate rebates to consumers:
The Home Efficiency Rebates will provide $4.3 billion to discount the price of energy-saving retrofits in single-family and multi-family buildings. These rebates will be administered by states and territories.
The Home Electrification and Appliance Rebates will provide $4.5 billion in rebates for high-efficiency electricity upgrades in homes. These rebates will be administered by states, territories, and Indian tribes.
For more information, visit the Home Energy Rebates website and sign up for email updates.
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