New York Governor Kathy Hochul.
Lev Radin/Anadolu Agency via Getty Images
New York is launching a program offering homeowners rebates of up to $14,000 for improving the energy efficiency of their properties, and other states are expected to follow suit by the end of the summer.
The rebate programs are part of the federal Inflation Relief Act, the largest climate legislation in U.S. history, which President Joe Biden signed into law in 2022.
The law provided $8.8 billion to consumers through two Home Energy Discounts programs.
Financial incentives help consumers reduce or fully offset the cost of upgrades to make their homes more energy efficient, thereby reducing carbon emissions and reducing homeowners’ future energy bills, state and federal officials said.
Such projects may include, for example, the installation of air sealing, insulation, electric heat pumps and electric ranges.
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New York launched part of its rebate program on May 30, providing up to $14,000 in federal funds to low-income families.
In combination with newbie government program called EmPower+ Consumers can receive up to $24,000 in energy efficiency rebates, according to Doreen Harris, president and CEO of the New York State Energy Research and Development Authority.
‘Several’ states will introduce rebates by September
States, territories and tribes that administer the programs must apply for federal funds.
Seventeen states applied for Home Energy Rebates funding as of June 14, according to the U.S. Department of Energy. New York was the first to provide financing to consumers.
DOE expects “several more states” make discounts available “Between now and September,” it said. The agency approved applications submitted by California and Hawaii, the final step before implementation.
The New York launch “is an important milestone,” said Cara Saul Rinaldi, CEO and founder of AnnDyl Policy Group, a consulting firm specializing in climate and energy policy. “Over the next year, we will see these programs begin to spread across America.”
How the discount program works
The Inflation Reduction Act created two home energy rebate programs: the Home Efficiency Rebate Program and the Home Electrification and Appliance Rebate Program, or HEAR.
The New York launch in May was just part of the HEAR program. He will submit a second application later.
By federal law, the HEAR program is only available to low- and moderate-income homeowners.
New York City was initially approved for federal funding for low-income single-family households (one to four units). They must have an income of 80% or less average income of the region to qualify.
The HEAR program has a maximum dollar amount per project. For example, New York pays the following maximum federal rebates:
- Sealing, insulation and ventilation: $1,600.
- Electrical upgrade (panel cabinet): $4,000.
- Electrical wiring upgrade: $2,500.
- Heat pump water heaters: $1,750.
- Heat pumps: $8,000.
Low-income households are eligible to reimburse 100% of the cost of their project, up to $24,000 from combined federal and state funds.
These rebates are provided through contractors, who communicate project costs to consumers with the rebates applied, according to Harris of the New York State Energy Research and Development Authority. NYSERDA has directory of qualified contractors who can make such updates.
New York intends to launch the second phase of the HEAR program in the fourth quarter of 2024, Harris said.
If approved by the Energy Department, she said, the state would expand the rebate program in several ways: It would be available to residents with moderate incomes, defined as 80% to 150% of the area median income; to apartment buildings; and purchases of appliances, such as ENERGY STAR rated electric ranges and electric heat pump clothes dryers, which will be available at retailer locations.
Home Efficiency Rebate Program
In contrast, the Home Efficiency Rebates program is technology neutral. No state has yet launched such a program, although applications are pending with the Department of Energy.
The value of the rebates depends on how much energy a household saves through increased efficiency. The deeper the outages go, the bigger the discounts will be – up to $8,000.
The program is available to all families, regardless of income.