New York has recently introduced a program that provides homeowners with the opportunity to receive up to $14,000 in total rebates for making energy-efficiency upgrades to their properties. This initiative is part of the federal Inflation Reduction Act signed by President Joe Biden in 2022. The act allocated $8.8 billion for consumers through two Home Energy Rebates programs, aiming to assist homeowners in reducing their carbon footprint and cutting down on future energy expenses. The upgrades covered by the rebates include air sealing, insulation, electric heat pumps, and electric stoves, among others.
New York kicked off its rebate program in May, offering up to $14,000 in federal funds to low-income households, with the potential to stack an additional $10,000 from the EmPower+ state program. This brings the total possible rebate amount to $24,000 per household. It is worth noting that states, territories, and tribes must apply for the federal funds to take part in this initiative, with New York being the first state to make the rebates accessible to consumers. Additionally, the U.S. Energy Department has disclosed that several more states are expected to join the program and make the rebates available by September of this year. California and Hawaii are among the states whose applications have been approved, and they are in the final stages before rolling out the program.
The Inflation Reduction Act established two Home Energy Rebates programs: the Home Efficiency Rebates program and the Home Electrification and Appliance Rebates (HEAR) program. New York kicked off its participation with part of the HEAR program in May and plans to apply for the second phase at a later date. The HEAR program caters exclusively to low and middle-income homeowners, with specific requirements concerning income levels and property types. For instance, low-income single-family households with incomes at or below 80% of the area’s median income are eligible for the program. The maximum rebate amounts vary based on the type of upgrade, with values ranging from $1,600 for air sealing, insulation, and ventilation to $8,000 for heat pumps. Contractors play a key role in the distribution of rebates, providing consumers with cost estimates that reflect the applied rebates.
New York is looking to expand the HEAR program in the fourth quarter of 2024, pending approval from the Energy Department. The proposed expansion aims to make the rebates accessible to moderate-income residents, multifamily buildings, and the purchase of electric appliances like ENERGY STAR-rated electric stoves and heat pump clothes dryers. It is also important to note that the Home Efficiency Rebates program is technology-neutral, with no state having launched such a program yet. Applications for this program are currently under review by the Energy Department, with rebates tied to the overall energy savings achieved through efficiency upgrades.
The launch of New York’s Energy-Efficiency Upgrade Rebate Program signifies a step in the right direction towards reducing energy consumption and promoting sustainability. The initiative provides homeowners with financial incentives to make their properties more energy-efficient, contributing to the overall goal of mitigating climate change and cutting down on energy costs. As more states are expected to implement similar programs in the coming months, the future looks promising for those seeking to improve the energy efficiency of their homes.