Understanding the HEEHRA rebate program, A Quick Overview

The HEEHRA rebates represent a significant opportunity for low- and moderate-income families to make substantial home-energy improvements.

There is still a lot of information to be discovered, much of its details are still emerging.

However, what is known is significant: Residential energy consumption in the U.S. accounts for a fifth of the country’s total greenhouse gas emissions.

This fact is a key driver behind the introduction of the HOMES rebates program and HEEHRA home weatherization and electrification programs under the Inflation Reduction Act (IRA) of 2022, aimed at addressing these emissions.

Moreover, the unprecedented funding for the new HEEHRA rebate program (also known as the Home Electrification and Appliance Rebates Program) offers more than just the chance for a more energy-efficient home. It also presents an opportunity to enhance the health and comfort of your living space for you and your family.

As a homeowner, what should you know about the Inflation Reduction Act?

Implemented in August 2022, this act commits a remarkable $369 billion to address the climate crisis and counter the impact of rising energy costs and inflation.

Significantly, it provides $8.8 billion in federal rebates to assist households in cutting down on energy waste and implementing electrification enhancements (such as heat pumps—exciting news!).

This represents a major advantage for American homeowners, with many of the same improvements that enhance your home’s energy efficiency also capable of:

Making your home more comfortable throughout the seasons.
Reducing excessive moisture in your home (contributing to a healthier living environment!)
Extending the lifespan of your roof, HVAC system, and other home components.

With these substantial investments in residential energy efficiency and electrification, you’re presented with a chance to turn your home into a space that’s not only cleaner and healthier but also more eco-friendly, benefiting your family, pets, and the planet.

HEEHRA rebate program: what is it?

The High-Efficiency Electric Home Rebate Act (HEEHRA), established under the Inflation Reduction Act, is a significant program aimed at promoting home-energy upgrades in the United States. Designed for low- and moderate-income households, HEEHRA offers to cover 100% and 50% of electrification project costs up to $14,000 for low-income and moderate-income families, respectively.

This includes the cost of both purchasing and installing upgrades like heat-pump HVAC systems and electric cooktops. The program, which will distribute rebates over a decade, has the potential to significantly reduce energy waste in homes, enhance comfort, and provide substantial savings on home improvement projects and energy bills. An estimated 85% of eligible U.S. homeowners could collectively save over $37 billion annually with such upgrades. The program’s implementation and management are the responsibility of each state’s State Energy Office, with details on the rollout varying by state.

Is the HEEHRA program different in every state?

Yes, the HEEHRA program varies by state. Eligibility for HEEHRA rebates is determined based on household income relative to the local median income, which each state defines.

Did the HEEHRA program used to be called the Zero-Emissions Homes Act (ZEHA)?

Yes, the HEEHRA program was formerly known as the Zero-Emissions Homes Act (ZEHA). Recently, it has experienced a rebranding and some modifications.

Homeowners can gain significantly from HEEHRA rebates in various ways:

Cost Reduction: The primary advantage is the substantial reduction in the cost of typically expensive home upgrades. These upgrades can enhance home comfort, save energy, and potentially boost the home’s value.

Saving Money: Who doesn’t appreciate financial savings? HEEHRA rebates make this a reality.

Types of Upgrades: The program offers point-of-sale rebates for various home-electrification projects, including:

➡️ Electric heat pump HVAC systems

➡️ Electric heat pump water heaters

➡️ Electric heat pump clothes dryers

➡️ Electric stoves, cooktops, ranges, and ovens

➡️ Weatherization upgrades like insulation and air sealing

Energy and Health Benefits: Beyond the initial discount, homeowners benefit from reduced energy consumption and a healthier living environment. For instance, weatherization reduces heat and allergens in homes, which is particularly beneficial for asthma sufferers, as noted by the American Council for an Energy-Efficient Economy in their case studies.

Who is eligible for HEEHRA rebates?

Eligibility for HEEHRA rebates is primarily aimed at low- and moderate-income (LMI) households. This includes households with earnings below 150% of the area’s median income. The criteria for eligibility are as follows:

Low-Income Households: Must have an income less than 80% of the local median income.
Moderate-Income Households: Should have an income between 80% and 150% of the local median income.
Multifamily Buildings: Eligible if at least 50% of the residents are from LMI households.

When will HEEHRA rebates be available?

The availability of HEEHRA rebates is expected to begin in different phases across the United States. As per the latest updates from the U.S. Department of Energy, HEEHRA rebates are projected to be available in limited areas after June of 2024, with a broader availability anticipated in most areas starting from 2025.

The implementation timeline has been adjusted, and the administration process for the rebates is likely to be completed by late 2023 or early 2024. This means that rebates will start rolling out to some areas during the 3rd and 4th quarters of 2024. It’s important to note that these dates are subject to change as the program develops and more information becomes available.

Should homeowners wait for the HEEHRA program before upgrading?

Homeowners should consider proceeding with energy upgrades before the HEEHRA program fully rolls out, for several reasons:

Rising Energy Costs: Acting now can help combat increasing energy prices by reducing consumption.
Demand for Skilled Labor (Greenflation): Increased demand for energy-efficient upgrades could drive up costs due to higher demand for skilled tradespeople.
Product Availability and Regulations: Tighter energy-efficiency standards mean many current HVAC models may not be eligible for future rebates.
Environmental Impact: Delaying upgrades can have a substantial impact on both home health and climate contributions.
Current Availability of Rebates: Local rebate programs and tax incentives available now offer immediate benefits.
High Demand for Heat Pumps: The growing popularity of heat pumps means longer wait times for installation.

In summary, upgrading now can be beneficial for cost savings, environmental impact, and avoiding future supply and demand challenges.

For all other HVAC service needs, visit https://www.pacaire.com/attic-insulation/ or call us at 805-737-2564.