The new Energy Efficiency Upgrade Subsidy Program seeks to help Californian homeowners transition to energy-efficient technologies, particularly through home electrification and appliance upgrades. This effort is part of a larger national initiative under the Inflation Reduction Act (IRA), which set aside significant federal billions for states for energy efficiency and electrification work. California landed around $300 million in federal funding for Home Electrification and Appliance Rebate (HEAR) program

What is HEAR rebate program?

This rebate program is open to both single-family and multi-family homeowners, and will offer incentives for the purchase and installation of energy-efficient equipment like heat pumps and heat pump water heaters for use in space heating and cooling. The program stipulates that at least half of the rebates must go to low-income households (defined as households with incomes less than 80% of the median income in their area).

Multi-Family Homes: Up to $14,000 to be reduced per qualifying unit, including $8,000 for heat pumps (used for heating spaces and cooling them) and $1,750 for heat pump water heaters (both must be Energy Star certified). For electrical panels, wiring, electric cooking appliances, and electric heat pump clothes dryers, there are also additional rebates.

Homeowners with Single-Family Homes: The following phase will include rebates for single-family homes, the dollar amounts being tiered based on income levels to counteract the fact that low- and moderate-income (LMI) families are less likely to currently have access to this energy-efficient upgrade.

Maximum Combined Total: $14,000

Effect on Air Change and Energy Recovery

A key focus for the HEAR program is advocating for energy-efficient air ventilation solutions by installing Energy Star-rated heat pumps, a key component of your home’s heating, cooling and ventilation systems. Energy Recovery Ventilators (ERV) are crucial for enhancing indoor air quality without compromising on energy efficiency. ERVs exchange heat and moisture between incoming air and outgoing air, allowing homes to keep fresh, clean air circulating without compromising energy efficiency.

Homeowners can save on heating and cooling costs significantly by installing ERV systems and incorporating heat pumps, which increases air circulation and minimizes the consumption of other electrical resources. In the cooling-dominated climate of California where prolific hours of extreme heat require both substantial and sustainable cooling solutions to put in circulation, the integration of energy efficient ventilation into our homes has never been more relevant.

Assisting Low-Income Households

Low- and moderate-income (LMI) households seek to access technologies that are sustainable and energy-efficient but are beyond the financial reach of the LMI community. High utility bills from old, inefficient cooling systems are a deep and ongoing burden for many LMI families. By offering financial incentives to upgrade to high-efficiency heat pumps and other electrification solutions, California’s program lowers long-term energy costs and improves living conditions for vulnerable populations.

To promote access to efficient appliances, in addition to appliance rebates, organizations eligible to represent LMI households will be able to access point-of-sale rebates, and installation participants will be eligible for up to $500 in rewards depending on the depth of the installation.