California Unveils New Energy Rebates to Help Homeowners Cut Energy Costs

Eligible Californians can now save thousands on home energy expenses thanks to a new rebate program targeting energy-efficient upgrades. Announced by Governor Gavin Newsom, the Home Electrification and Appliance Rebates (HEEHRA) provide financial incentives for homeowners to install eco-friendly heating and cooling systems, marking the beginning of two federal programs aimed at supporting efficient and climate-resilient homes. These rebates, a product of the Biden-Harris administration’s Inflation Reduction Act (IRA), are part of California’s commitment to reducing energy costs, improving air quality, and lowering greenhouse gas emissions.

Substantial Savings on Energy-Efficient Heat Pumps

Starting November 12, 2024, eligible single-family homeowners in California can apply for HEEHRA rebates on the purchase and installation of heat pump HVAC systems, offering a sustainable solution that can replace traditional electric resistance heating systems. The rebates, managed by the California Energy Commission (CEC), provide significant financial assistance, potentially saving households hundreds annually in energy costs.

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Governor Gavin Newsom highlighted the dual benefits of these rebates, stating, “Thousands of dollars are now available for California homeowners to install heat pumps, making your home more energy-efficient and reducing your energy bills by hundreds of dollars each year. With these new rebates made possible by the Biden-Harris administration, Californians can save money and take real climate action.” Additional climate action programs are available at climateaction.ca.gov.

CEC Commissioner Andrew McAllister emphasized the efficiency of heat pumps, noting, “We’re excited to announce that owners of single-family homes may apply for HEEHRA rebates on the purchase and installation of an energy-efficient heat pump HVAC. These units make homes more comfortable and can reduce electricity use by up to 75% compared to electric resistance heating such as furnaces. They also work as air conditioners, which an increasing number of Californians now need due to the effects of climate change. HEEHRA helps put this dual-use clean technology within reach of more Californians.”

Eligibility and Rebate Amounts for California Homeowners

Californians can receive rebates ranging from $4,000 to $8,000, depending on household income relative to the area median income (AMI). Homeowners with incomes between 80% and 150% of the AMI may qualify for up to $4,000, while those with incomes under 80% AMI could be eligible for the maximum $8,000 rebate. Homeowners can check their AMI eligibility and begin the rebate application by visiting here.

The program also includes incentives for owners of multifamily buildings. The rebates for multifamily properties went live on October 8, 2024, expanding access to efficient appliances across a broader range of residents.

The CEC’s funding distribution for these rebates is a part of the TECH Clean California initiative, which aims to increase adoption of energy-efficient home appliances across the state. The rebates cover substantial costs for new heat pump systems and can be combined with additional incentives for further savings on electric appliances and equipment upgrades.

Expanding Energy Efficiency Statewide

The CEC’s proactive rollout of rebates reflects California’s leadership in environmental policy. The state has been an early adopter in providing energy efficiency rebates for multifamily buildings, and the expansion to single-family homeowners underscores its commitment to widespread climate resilience.

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Keishaa Austin, Principal Deputy Director of the U.S. Department of Energy’s Office of State and Community Energy Programs, commented on California’s leadership, stating, “California was an early mover in setting up and launching their Home Energy Rebates. Now, mere weeks after making the program available for multifamily buildings, they are expanding it to single-family homeowners. Starting today, thanks to the California Energy Commission’s continued commitment to the residents it serves, low- and middle-income Californian homeowners can apply to save thousands of dollars on energy-saving heat pump HVAC units.”

For more details on the available rebates and eligibility requirements, Californians can visit techcleanca.com/heehra for guidance on the application process and to learn more about other incentives that may increase potential savings on energy-efficient home upgrades.