Home Electrification and Appliance Rebates (HEAR)

Electrification Rebates

The Home Electrification and Appliance Rebates (HEAR), which we’ll also refer to as the “Electrification Rebates,” make it more affordable for more Americans to install electric appliances and complete electrification upgrades for their homes.

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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 $14,000, varies by state

Expected in 2024-25

The rebates are not available yet

The rebates will roll out state by state, and the timing and structure of the rebates will vary. These programs will be tailored to the unique needs of each state, and may vary significantly in who is eligible, what projects are covered, what building types are supported, when the rebates will be available, and how people will claim rebates. 

Based on the latest information, we think that a handful of states will launch their rebate programs in 2024, but most state programs will come online in 2025. These programs will be focused on low- or moderate-income homeowners. If you are a high-income household, you will not qualify for rebates. 

For the latest information about the rebates rollout and to track your state’s status, see the Home Energy Rebates page on the Department of Energy website.

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

What are the Electrification Rebates?

In the Inflation Reduction Act, the federal government created the Electrification Rebates to fund the installation of electrification upgrades for low- and moderate-income households. The rebates provide incentives to households that might not qualify for tax credits.

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The Electrification Rebates are not yet available, and they will roll out state by state over the next few years. The federal program guidelines set the broadest definition of who might be eligible and what they might be eligible for. Under those federal guidelines, the maximum amount of rebates that any household may qualify for under the program is $14,000.

However, each state can decide which residents and which upgrades to apply the rebate funding to. Some states might choose to direct all their rebate funding toward only one of these upgrades (e.g., only heat pump water heaters) or they might choose to include rebate funding for all of these upgrades.

The following are the broadest set of electrification upgrades (with maximum rebate amounts) that states may choose to include in their program:

Electrification Rebates Page - Upgrades - table

Low- and moderate-income households can qualify

Unlike the electrification tax credits, the Electrification Rebates are only available to low- and moderate-income households.

So, how do you know if you’re considered “low income” or “moderate income” for the Electrification Rebates? Eligibility is determined by where you live and how big your family is. 

Compared to the “Area Median Income” (AMI) for your region, any household with income less than 80 percent of AMI is considered low-income, and any household with income between 80 percent and 150 percent of AMI is considered moderate-income. 

Want to know where you fall? Use Rewiring America’s calculator to determine if your household income might qualify you for the Electrification Rebates. 

Note that these income limits are federal guidelines, but some states might choose to apply more restrictive limits. High-income households cannot qualify for Electrification Rebates, but they can qualify for the IRA’s electrification tax credits. 

Rebate amounts differ based on your income level 

Whether you’re low- or moderate-income will affect how much you can get back in rebates. 

Low-income households could have 100% of their project costs covered by rebates (up to the individual upgrade caps, and up to the $14,000 overall limit). Moderate-income households could have up to 50% of their project costs covered by rebates, up to the same caps. 

Different states have different criteria 

Each state has the ability to distribute the rebate money in different ways based on how they design the program. We can’t guarantee whether you’re eligible for rebates or how much you may get back

Your state may take available funds and split them equally between low- and moderate-income households, or they may set aside a larger percentage of the funds for lower-income households. In some states, it is likely that all of the rebate money will be set aside for low-income households and moderate-income households will not qualify. 

The Department of Energy website provides updates on state-by-state rollouts. We will also share updated program information for your state via our email list.

Your landlord may qualify

Renters do not qualify for the Electrification Rebates, but landlords do qualify. 

To learn about the potential benefits of encouraging your landlord to electrify—for you and for them—check out our guide to talking to your landlord about electrification.

The following table describes the primary qualification criteria for each upgrade. States may include requirements that are more restrictive than these federal guidelines.

Electrification Rebates Page - Qualifications -  tableVisit the ENERGY STAR site to learn more about the certification. To see a list of appliances that qualify, see ENERGY STAR’s Product Finder website. 

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

The rebate will be calculated based on your income level and the total amount of the retail purchase or contractor invoice, and the rebate will be deducted from your bill. You will not receive cash. 

For example, let’s say that your state provides a rebate of $500 for electric/induction stoves.  You will be able to purchase a qualifying stove with a sticker price of $1,300 for only $800 since $1,300-$500=$800. But if your state program decided to provide the maximum $840 rebate for stoves, you would only pay $460. You should not be required to pay upfront and wait for reimbursement. 

Each state will create a website with more information about how to apply once their program becomes available. We will share links to these resources as they become available. Each state will be required to maintain a list of qualifying contractors.

Rebates will not be available retroactively. This means that if you make a qualifying purchase before the rebates in your state are available, you will not be able to claim a rebate.

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

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