The U.S. Department of Energy (DOE) announced that New York is the first state in the nation to launch its Home Energy Rebates program, created by the Inflation Reduction Act.
New York’s program is meant to allow more low-and-middle income families to adopt efficiency and clean energy upgrades. New York’s launch is part of a larger 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.
DOE says these energy saving measures will save consumers up to $1 billion annually in energy costs and support an estimated 50,000 U.S. jobs in residential construction, manufacturing, and other sectors.
“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,” said John Podesta, Senior Advisor to the President for International Climate Policy. “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.”
“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,” New York Governor Kathy Hochul said. “Thanks to our strong partnership between New York State, the Biden Administration, and U.S. Department of Energy, we are making important progress to make the clean energy transition affordable for all New Yorkers.”
Many Americans spend a large portion of their monthly income to heat, cool and power their homes— with some of the lowest-income families spending upwards of 30% of their income on energy bills, DOE said. Individual households could save hundreds on monthly energy bills and up to $14,000 for energy efficient home upgrades under the initiative. To advance the objective of these programs, DOE is requiring that states and territories must allocate at least half of the rebates to low-income households, defined as those earning 80% or less of their area median income. States and territories must also submit Community Benefits Plans to ensure jobs and other economic opportunities are available.
New York is launching the first phase of its $158 million Home Electrification and Appliance Rebates (HEAR) program – one of the two provisions making up the Home Energy Rebates programs – by weaving the funding through the state’s existing EmPower+ program, which serves homeowners and renters with incomes below 80% of their area median. Single-family properties and multifamily properties of up to four units are eligible under the first phase, while later phases of New York’s program will reach larger multifamily buildings and point-of-sale rebates at retailers.
The first phase of New York’s program will also support homeowners who wish to install air sealing, insulation, ventilation, heat pumps, heat pump water heaters, and electric upgrades (wiring and load service centers). The maximum rebate amount is $14,000 per housing unit.
New York is also working to stand up its Home Efficiency Rebates with $159 million funding from the Inflation Reduction Act, which will provide eligible households up to $8,000 in additional rebates for measures that reduce energy usage by at least 20%.
Three more states — Massachusetts, Michigan, and Rhode Island — have applied to DOE for funding needed to launch their own Home Energy Rebate programs.
Massachusetts has applied for its full $146 million allocation to launch both rebate programs—the Home Efficiency Rebates (HOMES) and HEAR .
Michigan has also applied for its full $211 million allocation to launch both programs.
Rhode Island has applied for close to $32 million to launch its HEAR program and will apply for its HOMES funding at a later date.
Once DOE approves the applications and awards funding, Massachusetts, Michigan, and Rhode Island will complete the final steps to launch their programs.
Seventeen states have now applied for nearly $1.9 billion in funding under at least one of the Home Energy Rebate programs. Each state is in charge of setting up and running its own program.
