HEEHRA Rebate Program: How It Works and When to Expect Rebates in 2025

Rebates are now projected to be available in limited areas after June of 2025 and available in most areas beginning in 2025 according to the U.S. Department of Energy.

HEEHRA is the High-Efficiency Electric Home Rebate Act passed as part of the 2022 Inflation Reduction Act by the U.S. Congress. The 10-year rebate program is designed as a voluntary incentive program, and will cover 100% (up to $14,000) of the cost for low- and moderate-income homeowners to replace their old electric resistance and gas appliances with new energy efficient ones.

• Up to an $8,000 instant rebate on an electric heat pump
• Up to a $1,750 instant rebate on a heat pump water heater
• Up to an $840 instant rebate on a condensing electric dryer
• Up to an $840 instant rebate on an electric range

Unlike a tax credit, HEEHRA offers instant rebates to low- and moderate income households for replacing less energy efficient appliances with higher energy efficient versions. In addition, qualifying households are eligible for instant rebates up to $4,000 for breaker box revisions and $2,500 for electrical wiring upgrades to accommodate the new electric appliances.

HEEHRA also provides up to $1,600 in weatherization rebates to improve windows, insulation and air seals in your home.

How Does the HEEHRA Rebate Work?

Although Congress appropriated the funds for HEEHRA electrification project rebates to be available on January 1, 2023, the U.S. Department of Energy is still in the process of setting guidelines for state energy offices to administer the rebates. Once the Department of Energy makes funds available to the states, the state entities will then be responsible for setting up and administering the programs that make the rebates accessible to homeowners.

According to the Department of Energy, the administration process for making the HEEHRA rebates is projected to be completed by late 2024 or early 2025. Note: The Department of Energy recently revised the dates when HEEHRA rebates will be available. They now indicate that rebates will roll out to some areas during the 3rd and 4th quarters of 2024. Rebates are expected to be available in most areas at the beginning of 2025.

We will continue to update this article as more information about HEEHRA rebates become available.

The rebate will be given at the point-of-sale, but because implementation is still in process, there may be additional steps you’ll need to take once the rebate program is in place. The rebates won’t be retroactive, so you’ll need to wait until they’re available.

Once the rebate program starts, low-income households are eligible to receive 100% rebates for the costs of qualified electrification projects. Installation costs are included in the rebates. Moderate-income households can get 50% rebates for the costs of qualified electrification projects (including installation).

To qualify as a low-income household, annual earnings must be less than 80% of the area’s median income level. Earning a comfortable living won’t necessarily disqualify you for this income classification.

For example, a household in the Denver, Colorado area (where median income is $117,800) could earn up to $94,240 to qualify for the 100% HEEHRA rebates as a low-income family.

You can look up your area’s median income on the Fannie Mae Area Median Income Lookup Tool to find out if you qualify for the 100% HEEHRA electrification project rebates.

Households earning between 80% and 150% of their area’s median income qualify for 50% HEEHRA electrification project rebates.

Even though the percentage of rebates for moderate-income households decrease, the maximum amount of rebates for an electrification project stays the same. Moderate-income families can still get up to $14,000 in rebates, although their out-of-pocket expenses for electrification projects will typically be higher than that of low-income households.

A family in the Denver area earning between $94,240 and $176,700 would qualify for 50% HEEHRA electrification project rebates.

Benefits of the HEEHRA Program

The HEEHRA program offers a significant reduction in energy bills. By facilitating home upgrades and implementing energy-efficient technologies, the program ensures that participants can enjoy a more comfortable living environment while cutting down on their monthly home energy bills.

But HEEHRA goes beyond just energy efficiency. Low and moderate-income families, often burdened by high energy costs and the expense of maintaining an outdated HVAC system, will find relief through the program. By offering rebates for energy efficient appliances and heat pump systems, the program not only lifts the weight of excessive energy bills off their shoulders, it allows them save on repair bills on older appliances and systems in their homes

HEEHRA also fosters economic growth. As a part of the Inflation Reduction Act (IRA), the program will stimulate job growth in the installation and energy sectors. The rebate program is estimated to create more than 400,000 jobs over the next 10 years.

A core benefit of the HEEHRA program is its positive impact on the environment. By promoting energy-efficient appliances and systems, the program actively contributes to reducing carbon emissions. Replacing outdated appliances with eco-friendly alternatives lowers the overall carbon footprint of households across the country.

Through upgraded insulation, better ventilation, and cleaner heating systems, the program enhances indoor air quality. This leads to healthier homes, mitigates respiratory issues, and creates a safer space for families.

As more homes undergo energy-efficient transformations, the collective reduction in energy demand contributes to overall grid stability. This stability, coupled with reduced air pollution, fosters a better quality of life for everyone.

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No matter the type of HVAC system you have in your home, you can rely on Sears Home Services to help with all of your maintenance and repair needs. Annual HVAC maintenance keeps your system running efficiently and help prevent unexpected breakdowns. If an HVAC breakdown does occur, our repair experts can quickly get it running for you again. Schedule an appointment today.