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Eligible California Homeowners and Multifamily Building Owners Can Use the Federal Home Energy Rebate Programs to Save Energy, Save Money on Energy-Efficient Upgrades, and Lower Housing Costs
Investing in America Agenda Provides Added Support to California’s Existing Energy-Efficiency Programs, Giving Residents More Opportunities to Save
WASHINGTON, DC — As part of President Biden’s Investing in America agenda, the U.S. Department of Energy (DOE) announced today that California is launching its first federal Home Energy Rebates program, supported by the Inflation Reduction Act. California is launching the Home Electrification and Appliance Rebates (HEAR) portion of the rebate program—enabling savings on energy efficiency improvements.
California’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, which helps save money on housing costs. 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.
“California has long been at the vanguard of combating climate change and advancing energy efficiency,” said U.S. Deputy Secretary of Energy David M. Turk. “DOE is thrilled to provide nearly $300 million to California through the HEAR program. This investment will build upon California’s strong foundation, helping thousands of additional residents enjoy lower energy bills and cleaner air while strengthening our collective fight against climate change.”
“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 Californians because they will save money by lowering energy bills,” said John Podesta, Senior Advisor to the President for International Climate Policy. “Congratulations to California for making these game-changing Inflation Reduction Act incentives available to their residents.”
“California has led the way on saving people money while taking climate action,” said California Governor Gavin Newsom. “With the help of the Biden-Harris Administration and the historic Inflation Reduction Act, Californians can now get up to thousands of dollars to make the switch to energy efficient appliances. Saving money and fighting the climate crisis has never been easier.”
“Electrifying and upgrading appliances is not just good for consumers’ wallets, but also for our planet,” said U.S. Senator Alex Padilla. “Thanks to the historic Inflation Reduction Act, the Home Electrification and Appliance Rebates program will help working families switch to sustainable, energy-efficient appliances — from home HVAC systems to water heaters — lowering their electric costs, improving indoor air quality, and reducing harmful emissions.”
“This program from DOE and CEC will make sure that California families can afford energy efficient appliances that will save them money on energy bills, reduce greenhouse gas emissions, and improve the air quality in their homes,” said U.S. Senator Laphonza Butler. “I applaud the Biden-Harris Administration’s investment in making sure that families are equipped to adapt to our changing climate.”
“Existing buildings is one of the toughest segments of the housing market to decarbonize, to reduce the impacts of climate change. That’s why we are so energized to bring the federal Home Energy Rebates to Californians wanting to switch to cleaner, more efficient electric appliances and equipment,” said Commissioner Andrew McAllister, lead for energy efficiency at the California Energy Commission. “Starting this week, California is opening up applications for federally funded rebates, thanks to a close partnership with the DOE to make low-carbon technologies like heat pumps accessible to more Americans.”
Many Americans spend a large portion of their monthly income to heat, cool and power their homes. To advance the objectives of the rebate 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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