Watch Out For IRA Rebate Scams!
The only Inflation Reduction Act (IRA)-funded rebates currently available to Californians are the Home Electrification and Appliance Rebates (HEEHRA) available through specially trained TECH Clean California contractors. The other IRA-funded rebate program – Home Efficiency Rebates (HOMES) – has not yet launched. Be wary of any person or business asking for your income information for these programs or offering to submit program applications on your behalf. Any person or business offering to submit a program application on your behalf, sign a contract guaranteeing a rebate, or provide equipment before the HOMES Program begins cannot access rebates for you at this time and is not associated with the State of California, the California Energy Commission (CEC), or the rebate program administrator.
If you are concerned that you were lied to or scammed, we encourage you to contact the California Department of Consumer Affairs or call 1-800-952-5210; the California Attorney General’s Office, the Better Business Bureau or your county’s District Attorney’s Office.
Home Electrification and Appliance Rebates Now Available!
Starting in October 2024, the HEEHRA Phase I Program rebates for energy efficient appliances and equipment are available to income-eligible California multifamily property owners/operators. Eligible Californians must work with a HEEHRA-trained contractor enrolled in TECH Clean California to receive the rebates. The HEEHRA rebates are the first Inflation Reduction Act (IRA)-funded rebates available to qualified Californians.
The application for the HEEHRA Phase I Program is available on TECH Clean California’s HEEHRA Program page.
For answers to frequently asked questions, please see our FAQ.
Background on the IRA Programs
On August 16, 2022, President Joe Biden signed the IRA into law to help U.S. households save money on energy bills, improve energy efficiency, reduce greenhouse gas emissions, and improve indoor air quality. The IRA introduced two major home rebate programs: the HOMES Program to improve the energy efficiency of an entire home, and the HEEHRA Program for electric equipment and appliance rebates for low-to-moderate-income Californians. The IRA will also fund contractor training through CA-TREC grants, which are not yet available.
The United States Department of Energy (DOE) estimates the IRA programs will save American households up to $1 billion on energy bills each year and support over 50,000 U.S. jobs.
Timeline for California’s IRA-funded rebate programs:
Date | Event |
---|---|
August 2022 | IRA passed into law. |
July 2023 | The DOE released initial guidance to states and territories on how to apply for grant funding. |
October 2023 | DOE grant application guidance updated. |
December 2023 | The CEC issued a Request for Information (RFI) for the HOMES Program. |
January 2024 |
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March 2024 | The CEC hosted a HOMES public workshop for program development. |
June 2024 | The CEC's HEEHRA Phase I application was approved, and grant awarded by the DOE. |
July 2024 | The CEC hosted the HEEHRA Phase I Community Benefits Plan Workshop. |
August 2024 | The CEC submitted the HOMES application for whole-home efficiency funding to the U.S. Department of Energy (DOE). The CEC submitted the Blueprint Plans for HEEHRA Phase I to the DOE. |
October 2024 | The DOE approves the CEC’s Blueprint Plans for HEEHRA Phase I. The CEC, in partnership with TECH Clean California, launches the HEEHRA Phase I Program to owners/operators of income-eligible multifamily properties. HEEHRA Phase I will be available to single-family homeowners in the coming weeks. |
Receive up-to-date information via email when you subscribe to the Federal IRA Residential Incentives docket email list on this page (right-hand side). You can also subscribe to the DOE Office of State and Community Energy Programs for federal announcements on the IRA programs.
Home Efficiency Rebate (HOMES) Program
This program is not yet launched. In December 2023, the CEC issued a request for information, proposing to utilize HOMES funding to support the CEC’s Equitable Building Decarbonization Direct Install Program. In response to stakeholder feedback, in March 2024, the CEC held a public workshop, announcing its intent to split HOMES funding between the Equitable Building Decarbonization Direct Install Program and a statewide Pay for Performance Program, through which rebate values will be determined based on actual energy savings measured at the utility meter. The workshop also gathered public input on the design of the Pay for Performance Program. The Pay for Performance workshop presentations and recordings are available under Past Events at the bottom of this page. The CEC also held a pre-solicitation workshop for the Equitable Building Decarbonization Direct Install Program in March 2024, released a grant funding opportunity in April 2024, and released a notice of proposed award (NOPA) for Regional Administrators in August 2024.
The CEC submitted the application for HOMES rebate funding to the DOE in August 2024 and is awaiting DOE approval. The CEC expects the HOMES Direct Install Program to launch in 2025 and the Pay for Performance Program to launch in 2025. CEC staff welcomes and continues to consider additional comments submitted to the docket as the CEC works to implement the program.
Home Electrification and Appliance Rebates (HEEHRA) Program
In October 2024, HEEHRA Phase I residential equipment and appliance rebates for income-qualified, multifamily properties became available via the TECH Clean California network of registered and trained contractors. The rebate application, information on consumer eligibility and qualifying equipment, and other details are available on TECH Clean California’s HEEHRA Program page.
In July 2024, the CEC issued a request for public comment for the HEEHRA Phase I Draft Community Benefits Plan, which is one of four program Blueprint Plans the DOE reviews and approves before any of the IRA-funded programs can launch and accept rebate applications. Also in July 2024, the CEC held a public workshop to seek public input on the HEEHRA Phase I Program. Workshop presentations and recordings are available under Past Events at the bottom of this page.
Public and stakeholder comments were incorporated into the HEEHRA Phase I Program and into the Blueprint Plans, including the Community Benefits Plan. The CEC submitted the Blueprint Plans for HEEHRA Phase I to the DOE in August 2024. The DOE approved the Blueprint Plans in October 2024. The CEC received DOE approval to launch the HEEHRA Phase I Program and began accepting qualified multifamily applications in October 2024.
Training for Residential Energy Contractors (CA-TREC) Program
This program is not yet launched. In August 2023, the CEC issued a request for information for the CA-TREC Program. Comments were due on September 25, 2023. The comments are stored in the 23-DECARB-01 docket. Moreover, the CEC carried out a survey that was designed to supplement the request for information, and the survey closed on November 30, 2023. Survey results informed the design of the CA-TREC Program. CEC staff welcomes and continues to consider additional comments submitted to the docket as the CEC continues to work on this program. The CEC submitted its CA-TREC application to the DOE in January 2024 and is awaiting DOE approval. Upon the DOE’s consideration and approval of California’s application, the CEC will issue a grant solicitation for organizations interested in grants supporting contractor training.
- Rebates are not yet available. The Equitable Building Decarbonization Direct Install Program is expected to launch in 2025, and the Pay for Performance Program will launch in 2025/2026.
- The DOE has allocated $291 million to California for HOMES rebates and program administration.
- HOMES funding will be split between two programs:
- The CEC’s Equitable Building Decarbonization Direct Install Program providing no-cost upgrades for low-income residents and
- A statewide Pay for Performance Program through which rebates will be based on actual measured energy savings, available to Californians of all income levels.
- Rebates are for whole-home energy efficiency retrofits for single-family homes and multifamily buildings.
- Projects must achieve certain thresholds of energy savings.
- The Equitable Building Decarbonization Direct Install Program will follow DOE guidance for the “modeled path.” This means that projects must achieve forecasted energy savings of at least 20%.
- The Pay for Performance Program will follow DOE guidance for the “measured path”. This means that portfolios of projects must realize at least 15% energy savings measured using meter data.
- In October 2024, HEEHRA Phase I residential equipment and appliance rebates for income-qualified multifamily properties became available via the TECH Clean California network of registered and trained contractors. The trade professionals will apply for and then receive the rebate payments, which will be passed on to eligible homeowners, property owners, and other qualified entities.
- The rebate application, information on consumer eligibility and qualifying equipment, and other details are available on the TECH Clean California’s HEEHRA Program page.
- The following groups are currently eligible to apply for rebates through the HEEHRA Phase I Program:
- Owners of multifamily properties with five or more residential units.
- Governmental, commercial, or nonprofit entities carrying out a project for an owner/operator of an eligible multifamily property.
- A tool to verify your household income eligibility will be released soon.
- Owners of income-eligible, single-family households (including manufactured or mobile homes) who either reside in the home and are income-qualified or rent the home to an income-qualified household will be able to apply for rebates in the coming weeks.
- HEEHRA Phase I equipment and appliance availability will vary for single family and multifamily properties.
- For owners of single-family homes, eligible equipment includes ENERGY STAR® certified heat pumps for space heating and cooling.
- For owners of multifamily homes, eligible equipment and appliances include ENERGY STAR® certified:
- Heat pumps for space heating and cooling
- Heat pump water heaters
- Electric stove, cooktop, range, or oven
- Heat pump clothes dryer
- Electrical panel upgrades and wiring for multifamily properties are also eligible for rebates.
- Since ENERGY STAR® certifications do not exist for multifamily central HVAC heat pumps and multifamily central heat pump water heaters, these products are exempt from the ENERGY STAR® certification requirement.
- Rebates per multifamily unit for eligible equipment and appliances range from $700 to $8,000. Rebates subject to program rules and may be subject to change.
- HEERHA Phase I also provides incentives of $200 to contractors who install eligible heat pump equipment into a low-income, single-family household. The contractor must be certified with TECH Clean California and trained on the HEEHRA rebates. To learn about training and certification, please visit The Switch Is On.
- The DOE has allocated $290 million to California for HEEHRA rebates and program administration:
- HEEHRA Phase I: $80 million in rebates.
- HEEHRA Phase II: $152 million in rebates; seeking public input on program design later in 2024.
- Per federal law, HEEHRA rebates cannot be retroactive. Any equipment purchased and related electrification work initiated prior to the launch of the CEC’s HEEHRA Phase I are not eligible for rebates.
- HEEHRA Phase II is under development with an RFI and public workshop planned for winter 2024.
- Grants are not yet available. This program is awaiting DOE application approval and has not been launched.
- The DOE has allocated $10 million to California for program administration and grants to support training for residential energy contractors.
- CA-TREC grants fund training and education for residential energy contractors who install electrification improvements to support HOMES, HEEHRA, and the Equitable Building Decarbonization Direct Install Programs.
- HEEHRA Phase I Program made rebates available to income-qualifying multifamily properties in October 2024.
- HEEHRA Phase II Program to launch in late 2025/early 2026.
- HOMES Equitable Building Decarbonization Direct Install Program to launch in 2025.
- HOMES Pay for Performance Program to launch in 2025/2026.
- CA-TREC Program to launch in 2025.
Read the federal IRA of 2022, which authorized the funding for the energy efficiency and electrification programs that California and other states are now implementing, here: Section 50121, Section 50122, and Section 50123 of the Inflation Reduction Act of 2022 (H.R. 5376, 117th Congress)