Home Efficiency Rebates (HER)

Efficiency Rebates

The Home Efficiency Rebates (HER) are designed to reward energy efficiency retrofits that are modeled to achieve or have achieved verifiable minimum energy use reductions. A retrofit is an upgrade that makes your home more energy efficient. Eligible retrofits will probably include weatherization, space heating and cooling, and water heating, among other measures.

Jump to section

Disclaimer: All values listed below are estimates. The rebates will be implemented differently in each state, so we cannot guarantee final amounts, eligibility, or timeline. Without additional appropriations from Congress, the rebate programs will end once their initial IRA funding is exhausted.

Upfront Discount

Up to $8,000, varies by state

Now available

These programs are tailored to the unique needs of each state and vary significantly in who is eligible, what projects are covered, what building types are supported, and how people claim rebates.

As of December 16, 2024, efficiency rebates are available in Georgia, Michigan, Washington D.C., and Wisconsin.

The Department of Energy (DOE) has approved efficiency rebate programs in Colorado, New Mexico, and New York.

The above states are working on launching their rebate programs and we expect rebates in these states to be available in 2025.

19 more states have already applied for efficiency rebates.

To check rebate availability and see if your state has applied, visit the Home Energy Rebates page on the Department of Energy's website.

Before your state’s program launches, you can:

Get an energy audit to understand how much you can save
Apply for tax credits for efficiency upgrades
If you have a lower income, you can apply for your state’s Weatherization Assistance Program to get assistance paying to improve the efficiency of your home
Check if your state or utility has any existing programs to help residents pay for efficiency upgrades. We will be adding more of these programs to our calculator in 2025.

Sign up to receive rebate updates

If you'd like to be notified when the rebate program in your state launches, just subscribe to our email list. (Our policy team is tracking state rollouts so closely they're practically sleeping in shifts.)

Continue reading to learn what we know so far about income eligibility, home upgrades, and how much you might save.

What are the efficiency rebates?

In the Inflation Reduction Act, the federal government created the efficiency rebates to reward energy efficiency retrofits.

Hide details

The efficiency rebates are performance-based, meaning that the level of rebate is based on the modeled energy savings or measured energy savings achieved by the retrofit.

Modeled savings means that an energy professional will gather information about your current home and run a simulation to show how much energy you are projected to save with eligible project upgrades.

Measured savings means that you will submit bill and energy use data from your utility to show how much energy you have saved with eligible project upgrades.

Many details of the program are determined by the states. Exact rebate amounts for modeled and measured savings may vary widely. Based on federal government guidance, performance levels, and rebate amounts might match the chart below.

If rebates in your state are already available, you can find specific amounts by visiting the Home Energy Rebates page on the Department of Energy's website.

Energy Savings	Single-Family Homes	Multifamily Buildings	Low-income Home or Dwelling Unit
Energy Savings: > 15% Measured	Single-Family Homes:$1000 per 10% energy savings or 50% of project costs	Multifamily Buildings:$1000 per 10% energy savings per unit or 50% of project costs	Low-income Home or Dwelling Unit:$2000 per 10% energy savings or 80% of project costs
Energy Savings:20% to 35% Modeled	Single-Family Homes: $2000 or 50% of project costs (whichever is less)	Multifamily Buildings: $2000 per unit or 50% of project costs (whichever is less) Max $200,000 per building	Low-income Home or Dwelling Unit: $4000 or 80% of project costs (whichever is less)
Energy Savings: > 35% Modeled	Single-Family Homes: $4000 or 50% of project costs (whichever is less)	Multifamily Buildings: $4000 per unit or 50% of project costs (whichever is less) Max $400,000 per building	Low-income Home or Dwelling Unit:$8000 or 80% of project costs (whichever is less)

Who qualifies for efficiency rebates?

The efficiency rebates are for single-family and multifamily buildings and both homeowners and landlords, who can claim credit for efficiency improvements.

Show details

As designed in the legislation, the efficiency rebates are quite broad and can cover a range of homes.

Both multifamily and single-family homes are eligible
Owners and units with residents of all income levels can qualify, although higher rebate amounts are provided for low-income homes (<80% of area median income)
Only retrofits of existing homes or units are eligible

However, the details and timing of how the efficiency rebates roll out are highly dependent on how states design their programs. A state could choose to allocate all of their funding to multifamily or to low-income single-family homes.

What electrification upgrades qualify?

Any upgrade that results in energy savings can qualify for the efficiency rebates.

Show details

Because the efficiency rebates are dependent on modeled or actual energy savings, just about any energy efficiency improvement to a home might qualify, although since significant (>15%) energy savings are required in order to claim the rebates, most projects will likely focus on weatherization and building envelope improvements and improving the efficiency of large systems in the home like space heating and cooling and water heating.

The efficiency rebates can be claimed along with tax credits for the same project, although you should consult with your personal tax advisor for details. The efficiency rebates cannot be combined with the electrification rebates (or any other federal grant or rebate) for the same upgrade (e.g. a heat pump), but the two programs can be combined for different upgrades within the same home (e.g. heat pump and weatherization).

How to use the efficiency rebates

Because the efficiency rebates are performance based, they will require a home energy audit and energy modeling to be done for the home.

Show details

Measured savings and modeled savings programs involve specific criteria that must be met. We recommend working with a knowledgeable, participating contractor if you are seeking to claim an efficiency rebate.

For states that allow a modeled energy savings approach, the energy modeling software used must be consistent with the BPI-2400 standard to estimate energy savings before the upgrades and provide rebates for homes predicted to achieve a minimum of 20% energy savings.

For states that allow a measured energy savings approach, the method used to measure home energy savings post-installation must be approved by the Department of Energy. The method for collecting and verifying energy use for the measured savings track is still being determined. This will probably involve comparing utility bills before and after the upgrades.

For all homes, an energy audit will be required to produce an accurate baseline of energy use for the home.

The efficiency rebates should generally be implemented as upfront discounts applied on the contractor invoice for the efficiency upgrades. The contractor (or a third-party “aggregator”) should be reimbursed by the state after modeled or measured energy savings are verified. An aggregator is a company or nonprofit organization that assumes the administrative responsibility for processing the efficiency rebate — so contractors can focus on the installation.

All the details of how reimbursement will work — and who will be approved to complete eligible projects — will be determined by officials in your state.

Discover other incentives with the incentives calculator!

There are other incentives that you may qualify for. Our incentive calculator will show you a personalized list of incentives.

Go to Incentive Calculator

Helpful tools

Personal Electrification Planner

Interested in upgrading your home to all-electric appliances and vehicles? Generate a personalized electrification plan based on your particular home, lifestyle, and priorities — all in just a few minutes.

Incentive Calculator

Find out how much you could save with tax credits and rebates for heat pumps, water heaters, electric vehicles, electric stoves, rooftop solar, wiring upgrades, and energy efficiency improvements to your home.

Rewiring America Homes Site

Explore resources to help you electrify everything! Learn about induction stoves, heat pumps, solar panels, EVs, and more.

Want to learn more about electrifying everything?

Join millions of households who are going electric. sign up for free electrification tips, explainers, advice, and more.