New York First State to Launch Home Energy Rebates Program Established by Inflation Reduction Act

The U.S. Energy Department on May 30 announced New York as the first state in the U.S. to initiate their Home Energy Rebates Program established by the 2022 Inflation Reduction Act, or IRA. The launch is part of a wider national initiative to deliver $8.8 billion in federal funding for states, territories and tribes to lower energy expenses and enhance energy efficiency across homes by reducing the costs of installing heat pumps, insulation, and electrical panels.

New York’s program will permit additional low- and middle-income households to take advantage of efficiency and clean energy advancements that will allow households to save money on energy bills. The state’s energy efficiency measures will help consumers save up to $1 billion yearly in energy expenditure and sustain around 50,000 jobs in manufacturing, construction and other critical sectors. Moreover, the investments support the Justice40 initiative, which aims to deliver 40 percent of the benefits of certain federal climate, clean energy, and affordable housing, and other investments to disadvantaged households that are usually neglected due to a lack of investment and weighed down by pollution.

Individual families could save up to $14,000 for energy efficient home energy advancements, as well as hundreds of dollars on monthly energy expenditure. The department requires that states assign at least 50 percent of the rebates to low-income households (those earning 80 percent or less of their area median income). Moreover, states and territories must adhere to the Community Benefits Plans to guarantee good employment and economic opportunities.

New York is inaugurating the first stage of its $158 million Home Electrification and Appliances Rebates Program, one of the two provisions of the Home Energy Rebate Program. The first phase of New York’s program will provide a maximum rebate amount of $14,000 per housing unit. The state is also in the process of implementing its Home Efficiency Rebates program with $159 million funded by the IRA, to provide eligible households up to $8,000 in additional rebates for measures that lower energy usage by at least 20 percent.

Rhode Island, Michigan and Massachusetts have also applied to the department for financing of their own state specific Home Energy Rebate Program.