New York has become the first state to launch the Home Energy Rebates program, which helps low- and middle-income households save up to $14,000 on energy-efficiency upgrades.

New York’s pioneering launch is part of a nationwide initiative to provide $8.8 billion in federal funding for states, territories, and Tribes to lower household energy bills and increase homes’ energy efficiency. This funding makes it more affordable to install energy-saving measures such as heat pumps, electrical panels, and insulation. The Home Energy Rebates program was created by the Biden administration’s Inflation Reduction Act.

These upgrades are projected to save consumers up to $1 billion annually in energy costs and support an estimated 50,000 US jobs in residential construction, manufacturing, and other sectors.

Here’s how the federal rebates work in a nutshell, in a short video:

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. 

New York’s first phase 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 shore up its Home Efficiency Rebates with $159 million from President Biden’s Inflation Reduction Act. That would provide eligible households up to $8,000 in additional rebates for measures that reduce energy usage by at least 20%.  

Electrification nonprofit and savings calculator Rewiring America‘s CEO, Ari Matusiak, said:

Today marks a landmark moment in the implementation of the largest climate bill in history. We congratulate New York for becoming the first state in the nation to roll out the Home Electrification and Appliance Rebates and applaud the Department of Energy for prioritizing getting these dollars out the door and into communities. 

Massachusetts, Michigan, and Rhode Island have also applied to the US Department of Energy for funding to launch their own Home Energy Rebate 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. You can check the status of your state’s program at energy.gov/save/rebates.    

Read more: Here’s how much money you’ll get with the Inflation Reduction Act

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