What you need to know about the Home Energy Rebate programs
May 12, 2025
By Willa Frej
As of May 2025, the federal Home Energy Rebate programs—Home Electrification and Appliance Rebates (HEAR) and Home Efficiency Rebates (HER)—are in various stages of implementation across the United States. These initiatives, established under the Inflation Reduction Act (IRA), aim to assist households in reducing energy costs and transitioning to cleaner energy sources through rebates for energy-efficient appliances and home upgrades.
Understanding HEAR and HER
HEAR (Home Electrification and Appliance Rebates): This program offers point-of-sale rebates for low- and moderate-income households to electrify their homes. Eligible upgrades include heat pumps, electric stoves, and necessary electrical panel enhancements.
HER (Home Efficiency Rebates): This initiative provides performance-based rebates to households that achieve significant energy savings through comprehensive home retrofits, such as improved insulation, air sealing, and HVAC upgrades.
By combining HEAR and HER rebates, along with other state or utility incentives, households may access total savings exceeding $20,000.
State-by-State Program Status
Active Programs
North Carolina: Both HEAR and HER programs are operational. The state employs a phased approach, initially targeting low-income and rural residents. Eligible households can receive up to $16,000 in HER funding, depending on income and specific needs.
Michigan: Statewide availability of both programs began in early 2025. Michigan prioritizes households at or below 80% of the area median income (AMI), with HER rebates reaching up to $20,000.
Georgia: Both HEAR and HER programs are available statewide. Rebates are determined based on household income and projected energy savings, with participation requiring a home energy assessment.
California: The HEAR program is active, offering rebates for heat pumps and electrification projects in both single-family and multifamily homes. The HER program is set to launch later in 2025, focusing on low-income households through initiatives like the Equitable Building Decarbonization Direct Install Program.
Wisconsin: Both HEAR and HER programs are available statewide, administered through Focus on Energy. Rebates are determined based on household income and projected energy savings, with participation requiring a home energy assessment.
Arizona: The state has initiated the HEAR program, focusing on air-conditioning replacements for single-family homes. The HER program is approved and scheduled to launch in phases throughout 2025.
Programs in Development or Delayed
New York: HEAR rebates are currently available through programs like EmPower+ and the Appliance Upgrade Program. Additional HER rebates are anticipated to become available later in 2025.
Colorado: The HEAR program is active for low-income households via the Weatherization Assistance Program. Broader availability and the HER program are expected to roll out later in 2025.
Florida: Initially, the state declined IRA funding for these programs. However, there has been a reversal in this decision, and efforts are underway to reclaim and implement the home energy rebate funds.
How to Participate
Check Eligibility: Determine your household's eligibility based on income and specific program requirements in your state.
Home Energy Assessment: Many programs require a professional assessment to identify eligible upgrades and estimate potential energy savings.
Select Certified Contractors: Engage with contractors approved by your state's program to ensure compliance and maximize rebate opportunities.
Apply for Rebates: Your contractor will submit applications through your state's designated program portal, ensuring all documentation and requirements are met.