The Biden-Harris Administration has announced that California is launching the first phase of its federal Home Energy Rebates program. Supported by the Inflation Reduction Act, this initiative aims to reduce utility bills for residents by promoting energy efficiency improvements.
California's program is part of a broader national effort to allocate $8.8 billion in federal funding across states, territories, and Tribes. The goal is to lower energy costs and enhance efficiency in American homes through cost-saving installations like heat pumps, electrical panels, and insulation. These measures are projected to save U.S. households up to $1 billion annually and create approximately 50,000 jobs in various sectors.
U.S. Deputy Secretary of Energy David M. Turk remarked on California's leadership in climate action: “California has long been at the vanguard of combating climate change and advancing energy efficiency,” adding that nearly $300 million will be provided to California through the HEAR program.
John Podesta, Senior Advisor to the President for International Climate Policy, stated, “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 Californians because they will save money by lowering energy bills.”
Governor Gavin Newsom highlighted the financial benefits for Californians: “With the help of the Biden-Harris Administration and the historic Inflation Reduction Act, Californians can now get up to thousands of dollars to make the switch to energy-efficient appliances."
Senator Alex Padilla emphasized both economic and environmental benefits: “Electrifying and upgrading appliances is not just good for consumers’ wallets but also for our planet.”
Senator Laphonza Butler expressed support for making these changes accessible: “This program from DOE and CEC will make sure that California families can afford energy-efficient appliances that will save them money on energy bills."
Andrew McAllister from the California Energy Commission noted the challenge of decarbonizing existing buildings: “Existing buildings is one of the toughest segments of the housing market to decarbonize... That’s why we are so energized to bring the federal Home Energy Rebates to Californians wanting to switch to cleaner, more efficient electric appliances."
The Department of Energy (DOE) requires states to allocate at least half of these rebates to low-income households. This strategy aims at benefiting disadvantaged communities while ensuring economic opportunities through Community Benefits Plans.
The initial phase in California involves TECH Clean California managing rebates on heat pumps for heating and cooling as well as other ENERGY STAR-certified appliances. Owners of multifamily buildings can receive significant savings per dwelling unit.
Single-family home owners will soon be eligible for similar rebates based on income levels. A second rebate program focused on whole-home retrofits is expected in 2025.
For further details about participation or upcoming phases, interested parties can visit relevant websites such as TECH Clean California or check their state's program status at www.energy.gov/save/rebates.
