California offers new rebates for home energy efficiency upgrades

Governor Gavin Newsome | Official website

Eligible Californians can now apply for rebates to reduce home energy costs through a federal program. This initiative, announced by Governor Gavin Newsom, is part of efforts to make homes more energy-efficient and cut pollution.

The Home Electrification and Appliance Rebates (HEEHRA) aim to save money on energy bills while reducing greenhouse gas emissions and improving indoor air quality. Single-family homeowners who qualify based on income may receive up to $8,000 in rebates for purchasing and installing new heat pumps. These rebates became available on November 12, 2024, following the release of similar incentives for multifamily building owners on October 8.

Governor Gavin Newsom stated, “Thousands of dollars are now available for California homeowners to install heat pumps, making your home more energy-efficient and reducing your energy bills by hundreds of dollars each year. With these new rebates made possible by the Biden-Harris administration, Californians can save money and take real climate action.”

Andrew McAllister from the California Energy Commission (CEC) highlighted that these units could reduce electricity use significantly compared to traditional heating methods. "These units make homes more comfortable and can reduce electricity use by up to 75%, compared to electric resistance heating such as furnaces," he said.

The program is funded through the Biden-Harris administration’s Inflation Reduction Act (IRA) and managed by the CEC via TECH Clean California. Keishaa Austin from the U.S. Department of Energy noted California's swift implementation: “California was an early mover in setting up and launching their Home Energy Rebates."

Homeowners with incomes between 80% and 150% of area median income (AMI) are eligible for up to $4,000 in rebates, while those earning less than 80% AMI can receive up to $8,000. Additional savings may be possible when combining these rebates with other incentives.

For further details on eligibility and applications, visit techcleanca.com/heehra.