New York Governor Kathy Hochul.
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New York is launching a program that offers homeowners total rebates of up to $14,000 for energy-efficient upgrades to their property, and more states are expected to follow suit by the end of the summer.
The rebate programs are part of the Federal Inflation Reduction Act, the largest climate law in U.S. history, which President Joe Biden signed in 2022.
The bill provides $8.8 billion to consumers through two Home Energy Rebates programs.
The financial incentives help consumers reduce or fully offset the costs of upgrades to make their homes more energy efficient, thereby reducing carbon emissions and lowering homeowners’ future energy bills, state and federal officials said.
Such projects may include, for example, the installation of air sealing, insulation, electric heat pumps and electric stoves.
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New York launched a portion of its rebate program on May 30, providing up to $14,000 in federal funding to low-income households.
Combined with a fledgling state program called EmPower+ that offers up to $10,000 per low-income household, consumers can access total rebates of up to $24,000 for energy efficiency improvements, according to Doreen Harris, president and CEO of New York State Energy Research and Development Authority.
“Several” states will introduce discounts by September
States, territories and tribes – which administer the programs – must apply for federal funding.
According to the U.S. Department of Energy, as of June 14, 17 states had applied for Home Energy Rebates funding. New York was the first to provide subsidies to consumers.
The Energy Department expects “several states” to make the rebates available “between now and September,” it said. The agency approved applications submitted by California and Hawaii, the final phase before the rollout.
The New York launch “is a milestone,” said Kara Saul Rinaldi, CEO and founder of AnnDyl Policy Group, a consulting firm focused on climate and energy policy. “Over the next year, we will see these programs rolled out across America.”
This is how the discount program works
The Inflation Reduction Act created two Home Energy Rebates programs: the Home Efficiency Rebates program and the Home Electrification and Appliance Rebates (HEAR) program.
The launch in New York in May was just one part of the HEAR program. It will apply for the second at a later date.
Under federal law, the HEAR program is only available to low- and moderate-income homeowners.
New York was originally approved for federal funding for low-income single-family households (one to four units). To qualify, they must have an income at or below 80% of the median income in their area.
The HEAR program has a maximum dollar amount per project. For example, New York pays the following maximum federal rebates:
- Air sealing, insulation and ventilation: $1,600
- Electrical upgrade (electrical box): $4,000
- Electrical wiring upgrade: $2,500
- Heat pump water heater: $1,750
- Heat pumps: $8,000
Low-income households are eligible to receive compensation for 100% of their project costs, up to $24,000 from combined federal and state funds.
According to Harris of the New York State Energy Research and Development Authority, these rebates are provided through contractors who quote consumers the cost of a project with rebates provided. NYSERDA has a directory of qualified contractors who can perform such upgrades.
New York aims to launch the second phase of the HEAR program in the fourth quarter of 2024, Harris said.
If approved by the Department of Energy, the state would expand the rebate program in several ways, she said: It would be available to middle-income residents, defined as 80% to 150% of the area median income; to apartment buildings; and to purchase electrical appliances such as ENERGY STAR-certified electric ranges and electric heat pump clothes dryers that would be available for retail purchase at the point of sale.
Home Efficiency Rebate Program
In contrast, the Home Efficiency Rebates program is technology neutral. No state has yet launched such a program, although applications are pending with the Department of Energy.
The value of the rebates depends on how much energy a household saves overall through efficiency improvements. The deeper the energy cuts, the higher the rebates, up to $8,000.
The program is available to all households regardless of income
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2024-06-20 13:42:21
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