QUEENS, N.Y. — New York has become the first state to launch the Home Energy Rebates program, a significant initiative under President Biden’s Investing in America agenda. Announced by the U.S. Department of Energy (DOE), this program, created by the Inflation Reduction Act, aims to help low- and middle-income families make their homes more energy-efficient and save money on utility bills.

Big Savings and More Comfort

The Home Energy Rebates program is part of a nationwide effort to provide $8.8 billion in federal funding to states, territories, and Tribes. This funding will make it cheaper to install energy-saving measures like heat pumps, electrical panels, and insulation in homes. These upgrades can save consumers up to $1 billion annually on energy costs and create around 50,000 jobs in sectors like construction and manufacturing.

Supporting Disadvantaged Communities

The program also supports President Biden’s Justice40 Initiative, which ensures that 40% of the benefits from federal investments go to disadvantaged communities. This means more energy-efficient homes and lower utility bills for those who need it most.

Leaders Speak Out

U.S. Secretary of Energy Jennifer M. Granholm said, “From tax credits to rebates, the Biden-Harris Administration is determined to lower costs for American families and change the economics of home energy bills. New York is leading the charge as states across the country gear up to launch their Home Energy Rebates program—delivering jobs, savings, and healthier homes.”

John Podesta, Senior Advisor to the President for International Climate Policy, added, “New York is leading the way as the first of several states that will make these game-changing incentives available to their residents this summer and fall.”

New York Governor Kathy Hochul emphasized the importance of the program, saying, “As the first state in the nation to offer these Inflation Reduction Act rebates, we are expanding access to home improvements that will save New Yorkers money on their energy bills and reduce our reliance on fossil fuels.”

How It Works

Many Americans spend a large portion of their income on heating, cooling, and powering their homes, with low-income families sometimes spending up to 30% of their income on energy bills. The Home Energy Rebates program aims to help by providing rebates for energy-efficient upgrades, potentially saving individual households hundreds of dollars monthly and up to $14,000 for significant home improvements.

To ensure these benefits reach those who need them most, the DOE requires that at least half of the rebates go to low-income households, defined as those earning 80% or less of their area’s median income.

New York’s Home Energy Rebate Program

New York is rolling out the first phase of its $158 million Home Electrification and Appliance Rebates (HEAR) program. This phase targets single-family homes and small multifamily properties, offering up to $14,000 in rebates per housing unit for upgrades like air sealing, insulation, ventilation, heat pumps, and electric upgrades.

New York is also preparing to launch its Home Efficiency Rebates program with $159 million from the Inflation Reduction Act, providing up to $8,000 in additional rebates for households that reduce energy use by at least 20%.

More States Joining In

Other states are also getting ready to launch their Home Energy Rebate programs. Massachusetts, Michigan, and Rhode Island have applied for funding to start their own initiatives. In total, 17 states have applied for nearly $1.9 billion in funding, with more states expected to join by September.

Consumer Protection

To protect consumers, states will have plans to ensure high-quality products and services, including a customer hotline or email for support. The DOE has set best practices to guard against unfair business practices and fraud.

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