The Biden-Harris Administration has announced that New York is the first state to launch the Home Energy Rebates program, a key component of the Inflation Reduction Act. This initiative aims to provide efficiency and clean energy upgrades for low- and middle-income families, helping them save on utility bills.
The U.S. Department of Energy (DOE) highlighted that New York's program is part of a broader $8.8 billion federal effort to reduce energy costs nationwide by supporting the installation of heat pumps, electrical panels, and insulation. These measures are projected to save consumers up to $1 billion annually and create approximately 50,000 jobs in residential construction and related sectors.
"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," said U.S. Secretary of Energy Jennifer M. Granholm. "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, "The Inflation Reduction Act’s home energy rebates for clean and energy-efficient appliances and upgrades will save families money by lowering their energy bills. 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."
Governor Kathy Hochul emphasized New York's role: "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."
Low-income households stand to benefit significantly from these programs. The DOE mandates that at least half of the rebates be allocated to households earning 80% or less of their area median income. This provision aligns with President Biden’s Justice40 Initiative, which aims for 40% of certain federal investments' benefits to flow to disadvantaged communities.
New York's initial phase involves a $158 million Home Electrification and Appliance Rebates (HEAR) program integrated into its existing EmPower+ initiative. Eligible properties include single-family homes and multifamily buildings with up to four units. Later phases will extend support to larger multifamily buildings and retail point-of-sale rebates.
Additionally, New York plans a $159 million Home Efficiency Rebates program offering up to $8,000 per household for measures reducing energy usage by at least 20%.
Other states preparing similar launches include Massachusetts ($146 million), Michigan ($211 million), and Rhode Island ($32 million). Seventeen states have applied for nearly $1.9 billion in funding under one or more Home Energy Rebate programs.
Consumer protection remains a priority; states must develop robust plans ensuring high-quality products and services while addressing consumer feedback promptly.
For more information on New York’s program: EmPower+ - NYSERDA
For details on saving energy and money or other state programs: www.energy.gov/save
