Inflation Reduction Act Residential Energy Rebate 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 opened applications to qualified owners of multifamily properties in October 2024 and to single family households in November 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: 
  1. The CEC’s Equitable Building Decarbonization Direct Install Program providing no-cost upgrades for low-income residents and 
  2. 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, and applications for single-family homeowners became available in November 2024. Rebates are only available through a HEEHRA TECH Clean California trained and enrolled contractor.
• Information on the rebate application process, income requirements, qualifying equipment, and contractor training are available on TECH Clean California’s HEEHRA Program page.
• The following groups are currently eligible to apply for rebates through the HEEHRA Phase I Program:
  • Income-eligible owners of single-family homes (including manufactured or mobile homes, duplexes, and other properties with four or fewer residential units) who either live in the home or rent the home to an income-qualified household.
  • 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.
  • owner/operator of an eligible multifamily property
• A tool to verify your household income eligibility is available at the HEEHRA Income Portal.
• All appliances and equipment must be ENERGY STAR® certified unless otherwise noted below.

• The table below indicates what rebates are available for income-qualified California single-family homeowners and multifamily property owners:  

  Single-Family – Low-to-moderate income*	Rebate Amount
  Low-Income: Heat Pump for Space Heating and Cooling (Heat Pump HVAC) (<80% Area Median Income, AMI)	$8,000
  Moderate-Income: Heat Pump for Space Heating and Cooling (Heat Pump HVAC) (80%-150% AMI)	$4,000

  Multifamily – Low-to-moderate income, max rebate per unit of $14,000*	Rebate Amount
  Heat Pump for Space Heating and Cooling – Dual Speed (Heat Pump HVAC)	$7,500
  Heat Pump for Space Heating and Cooling – Variable Speed (Heat Pump HVAC)	$8,000
  Heat Pump Water Heater (Electric to Electric Heat Pump, cannot replace existing Heat Pump)	$700
  In-Unit Heat Pump Water Heater	$1,750
  Central Heat Pump Water Heater (per unit served)**	$1,750
  Electric Load Service Center (Electric Panel)**	$4,000
  Electric Wiring**	$2,500
  Electric Stove, Cooktop, Range, or Oven	$840
  Heat Pump Clothes Dryer	$840
  Maximum per LMI Multifamily Household	$14,000

  *Rebates subject to program rules and may change.

  **ENERGY STAR® certifications do not exist for these product types. Alternate product eligibility criteria will be provided.

• Additional Installer Incentives of $200 are available for contractors who install eligible heat pump equipment in 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. The CEC will seek public input on program design later in 2024.
• HEEHRA rebates are not retroactive. Rebates are not available for equipment and related electrification work purchased or installed before a HEEHRA rebate application is reserved and approved. If you intend to apply for a rebate, do not make any purchases until you have reserved your rebate through a HEEHRA-trained and TECH Clean California-certified contractor. 
• HEEHRA Phase II is under development. A request for information from the public process and public workshop is planned for winter 2024. A request for information consists of asking the public for feedback on a proposed CEC program or policy. The public feedback informs the design of the final program or policy.

• 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. 

• Starting in October 2024, the HEEHRA Phase I Program began providing rebates for efficient electric appliances and equipment to owners/operators of multifamily buildings with income-eligible tenants, and single-family homeowners began receiving rebates in November 2024. Rebates are available for single-family and multifamily homes and values vary based upon household income.  
• 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)