At Full Deployment, Eligible Arizona Homeowners Can Receive up to $14,000 Through the Home Energy Rebate Programs to Save Energy and Save Money on Energy-Efficient Home Upgrades
PHOENIX, ARIZ. — As part of President Biden’s Investing in America agenda, the U.S. Department of Energy (DOE) announced today that Arizona has launched its first federal Home Energy Rebates program, supported by the Inflation Reduction Act. Arizona is the second state in the nation to launch the Home Electrification and Appliance Rebates (HEAR) portion of the rebate program—enabling low- and middle-income households to save on energy efficiency improvements.
Arizona’s launch is part of the Biden-Harris Administration’s nationwide initiative to provide $8.8 billion in Federal funding for states, territories, and Tribes to lower energy costs and increase efficiency in American homes by making it cheaper to install cost-saving measures such as heat pumps, electrical panels, and insulation. These energy-saving measures will save American households up to $1 billion annually in energy costs and support an estimated 50,000 U.S. jobs in residential construction, manufacturing, and other sectors. These investments also advance the President’s Justice40 Initiative, which sets a goal that 40% of the overall benefits of certain federal climate, clean energy, affordable and sustainable housing, and other investments flow to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution.
“Arizonans know more than most the urgency of deploying energy efficient measures, like insulation and upgraded HVAC systems so households across the state can slash their utility bills without putting people in danger of heat-related health impacts,” said U.S. Secretary of Energy Jennifer M. Granholm. “Arizona is one of the states leading the nation in building up their local workforce and keeping money in the pockets of their residents, all thanks to the Investing in America agenda.”
“Home energy rebates for clean and energy-efficient appliances and upgrades are good for the planet because they help cut pollution but more importantly they are good for Arizonan families because they will save money by lowering energy bills,” said John Podesta, Senior Advisor to the President for International Climate Policy. “Congratulations to Arizona for making these game-changing Inflation Reduction Act incentives available to their residents.”
Many Americans spend a large portion of their monthly income to heat, cool and power their homes; in Arizona 1 in 10 households are severely energy-burdened with some of the lowest-income families spending upwards of 30% of their income on energy bills. By participating in the Home Energy Rebate programs individual households could save up to $14,000 for energy-efficient home upgrades and hundreds more on monthly energy bills. To advance these programs' objectives DOE requires states and territories allocate at least half of rebates to low-income households defined as those earning 80% or less of their area median income benefiting many disadvantaged communities' households. States must also submit Community Benefits Plans ensuring good jobs and economic opportunities availability. To keep consumers informed DOE recently released a Consumer Bill of Rights framework encouraging state territorial Tribal rebates programs adoption.
Arizona’s “Efficiency Arizona” Home Energy Rebate Programs
Arizona is launching its HEAR program – one of two programs making up Federal Home Energy Rebate programs - in two phases.
Initially Arizona’s Efficiency Arizona (HEAR) program partnering with regional community action agencies will focus on providing heat pumps under an air-conditioning replacement program addressing heat relief emergencies/financial hardships. At this stage lower- moderate-income single-family homeowners facing extreme heat will be eligible for up $4k-$8k rebate on new heat pumps. Later this fall Arizona plans rolling out remainder HEAR program providing lower-middle-income homeowners/renters with up $14k rebates upgrading equipment/appliances covering up 100% costs lower-income families/up 50% moderate-income families (earning between 80-150% area median income). They will be able saving:
$8k for ENERGY STAR-certified electric heat pump space heating/cooling.
$4k for electrical panel.
$2.5k for electrical wiring.
$1.75k for ENERGY STAR-certified electric heat pump water heater.
$1.6k for insulation air sealing mechanical ventilation products.
$840 for ENERGY STAR-certified electric heat pump clothes dryer/electric stove cooktop range oven.
A second Home Energy Rebates program launching later allows savings reducing whole-home energy consumption measures.
For more information visit Arizona's Home Energy Rebates website.
More States Get Ready for Rebate Launch
To date DOE awarded over $1.6 billion states implementing federal Home Energy Rebate programs; eleven states received full funding: Arizona California Hawaii Indiana Maine Michigan New Mexico New York Rhode Island Washington Wisconsin.
DOE continues receiving approving funding applications states territories Tribes launching programs; fifty-one applied early administrative/full program funding.
DOE received full funding applications twenty-six: Arizona California Colorado Connecticut Delaware District Columbia Florida Georgia Hawaii Illinois Indiana Maine Massachusetts Michigan Minnesota New Hampshire New Jersey New Mexico New York North Carolina Oregon Rhode Island Tennessee Vermont Washington Wisconsin.
The Inflation Reduction Act required states/territories declare intent participate rebate programs August 16th; DOE received confirmation from fifty-five fifty-six planning participation.
Each state sets/runs own program status check at energy.gov/save/rebates.
In coming weeks more states expected launching helping American families save money with efficient home upgrades track launches website.
For more information visit energy.gov/save.