The Biden-Harris Administration has announced the launch of Colorado's first phase of the federal Home Energy Rebate programs. This initiative, supported by the Inflation Reduction Act, aims to reduce energy costs for families by making energy efficiency improvements more affordable. The Home Electrification and Appliance Rebates (HEAR) program is a part of this effort.
Colorado's participation is part of a broader national strategy to provide $8.8 billion in federal funding to states, territories, and Tribes. This funding will support measures such as heat pumps, electrical panels, and insulation installations, potentially saving American households up to $1 billion annually on energy costs and supporting approximately 50,000 jobs across various sectors. The investments align with President Biden’s Justice40 Initiative, which seeks to ensure that 40% of certain federal investment benefits reach disadvantaged communities.
U.S. Secretary of Energy Jennifer M. Granholm stated: “From folks living in the Plains to those in the Rockies, big cost savings are coming for Coloradans looking to adapt their home’s energy needs to face the new challenges posed by climate change." John Podesta, Senior Advisor to the President for International Climate Policy, emphasized that these rebates are beneficial both for reducing pollution and lowering energy bills for Coloradan families.
Colorado Governor Jared Polis remarked on the importance of increasing access to high-efficiency heat pumps and better insulation: “Upgrades like these save Coloradans money on utilities, make homes more comfortable year-round, and protect our clean air.” Will Toor from the Colorado Energy Office highlighted that improving home energy efficiency is crucial for achieving climate goals and reducing costs.
The U.S. Department of Energy mandates that at least half of these rebates be allocated to low-income households—those earning 80% or less of their area median income—to benefit disadvantaged communities. States must also submit Community Benefits Plans aimed at ensuring economic opportunities.
The HEAR program will initially be implemented through Colorado's Weatherization Assistance Program (WAP), targeting income-qualified residents with improved insulation and energy efficiency measures at no cost. Expansion plans include direct-to-consumer rebates starting in 2025 for income-qualified households in Colorado.
Eligible participants could receive significant savings per dwelling unit on ENERGY STAR-certified appliances and other upgrades under this program. A second phase under the Home Efficiency Rebates (HOMES) program is planned for 2025.
As more states prepare similar rebate launches, Americans can stay informed about their state's status via energy.gov/save/rebates or visit www.energy.gov/save for further details on saving energy and money.
