Inflation Reduction Act Residential Energy Rebate Programs

Q1: What does reopening the Inflation Reduction Act-funded HEEHRA Program mean? 

California is resuming its Home Electrification and Appliance Rebates (HEEHRA) Program, funded by the federal Inflation Reduction Act (IRA) and managed by the California Energy Commission (CEC). The program is offered through TECH Clean California and will continue to process approved rebate applications and reservation requests on a first-come, first-served basis as federal funds are made available.  

Q2: How can I apply for a HEEHRA rebate? 

The program is open to new single-family income verifications and rebate reservations in the Southern and Central regions of California. The single-family rebate budget for the Northern California region is fully allocated and is no longer accepting new income verification applications. If you have questions on the status of your reservation request or application seeking rebate payment, please contact your contractor or TECH Clean California at tech.info@energy-solution.com. General information is available on the TECH HEEHRA Program page. 

Q3: Who can I contact if I have questions about the HEEHRA Phase I Program? 

To find out the status of your reservation request or application seeking rebate payment, contact your contractor or TECH Clean California at tech.info@energy-solution.com. Contractors can submit questions to tech.contractor@energy-solution.com. To share issues or concerns with the CEC, please email IRAresidentialenergyrebates@energy.ca.gov, fill out this Inquiry form, or call 916-343-8471. 

Q4: Which programs are funded by the IRA? 

The Inflation Reduction Act funded multiple programs to help Americans save energy and create good-paying jobs. The series of programs called Home Energy Rebates are managed by the U.S. Department of Energy (DOE). Each U.S. state and territory were allocated funding for the following three programs: 

• Home Electrification and Appliance Rebates Program (called “HEEHRA” in California) helps reduce the costs of replacing aging, broken or inefficient home energy equipment. HEEHRA is available only for income-eligible households. HEEHRA Phase I was launched in October 2024 through TECH Clean California. The CEC is concurrently designing the HEEHRA Phase II Program.  
   
• Home Efficiency Rebates Program (called “HOMES” in California) provides rebates for whole home energy upgrades. Funding is divided between two programs: 60% to the existing Equitable Building Decarbonization Direct Install Program and 40% to a new Pay for Performance Program which would provide rebates based on measured energy savings. California received an award from the DOE for HOMES in January 2025. Rebates are not yet available. 
   
• Training for Residential Energy Contractors Program (called “CA-TREC” in California) offers grants to support the training of contractors to install and maintain energy equipment. The funding will help reduce or remove barriers to training by expanding apprenticeship programs, providing money to travel, or covering the cost of required tools. California received an award from the DOE for CA-TREC in December 2024. Grants are not yet available. 

Q5: How much funding was California allocated in the IRA? When does the CEC receive the money? 

California received a total award of $590 million from the U.S. Department for Home Energy Rebates. 

The DOE does not provide awarded funds to the states in one lump sum. Instead, once a state receives an award, DOE places the first “tranche,” or installment of funding, into a federal account that works very similarly to a trust or shared account. Like other states, as California needs funds to cover expected rebate costs and reimburse for actual expenditures to run the program, the CEC draws down funds from the federal account. 

HEEHRA Award and Phases

The Department of Energy (DOE) awarded $290 million to California for HEEHRA rebates and program administration in June 2024:

• HEEHRA Phase I: $80 million in rebates.
• HEEHRA Phase II: $152 million in rebates. Note: Phase II of the HEEHRA Program is not yet available. 

HEEHRA Phase I Program 

• The HEEHRA Phase I Program provides rebates for qualifying, energy saving appliances and equipment to income-eligible, single-family households and multifamily properties across the state. Single-family households may qualify for a rebate up to $8,000 and multifamily properties may qualify for rebates up to $14,000.
• Rebates are only available through contractors who are enrolled in TECH and trained in the HEEHRA rebates. Qualified contractors can be found through The Switch Is On’s Contractor Finder.
• Information on the rebate application process, customer eligibility, qualifying equipment, and contractor training are available on the TECH HEEHRA Program page.
• HEEHRA rebates can either be provided upfront to the customer as an instant discount on their project invoice or provided to the customer as a check from the contractor after installation.
• HEEHRA rebates are not retroactive. Rebates are not available for equipment, appliances, and related products purchased or installed before a HEEHRA rebate 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-certified contractor. 
• If you have questions about the HEEHRA Phase I Program or want to report an issue, please reach out to the following contacts:
  • For questions about customer eligibility, eligible equipment, finding a TECH-certified and HEEHRA-trained contractor, and other program-related topics, please email TECH – the HEEHRA Phase I Program administrator – at TECH.info@energy-solution.com.
  • For questions about income verification, please email  TECH.info@energy-solution.com or call 1-888-494-2532.
  • To report any nefarious activities, such as possible rebate scams and price gouging, please email the CEC at iraresidentialenergyrebates@energy.ca.gov.

HEEHRA Phase II Program

HEEHRA Phase II is under development. In December 2024, the CEC issued a Request for Information (RFI) and held a public workshop to solicit public feedback on HEEHRA Phase II Program design. Public feedback is being incorporated into the CEC’s HEEHRA Phase II Program application to DOE.

HOMES Award and Program Split

• The DOE awarded $291 million to California for HOMES rebates and program administration in January 2025:
  • Equitable Building Decarbonization Direct Install (60% of funding): $130.3 million
  • Pay for Performance (40% of funding): $90.8 million
• HOMES rebates are not yet available.

Equitable Building Decarbonization Direct Install Program

• The Equitable Building Decarbonization Direct Install Program will provide no-cost energy retrofits for low-income households.
• The program is supported by a combination of state funds and federal HOMES funds. Projects funded by HOMES must achieve at least 20% modeled energy savings.
• The CEC has selected three regional administrators to implement the program: the Association for Energy Affordability (Northern Region), the Center for Sustainable Energy (Central Region), and the County of Los Angeles (Southern Region).
• Retrofits will begin in summer 2025.

Pay for Performance Program

• The Pay for Performance Program will provide rebates for whole home energy retrofits for Californians regardless of household income, with enhanced rebates for low-income households. Rebate values may be higher for projects that reduce peak demand or contribute to reliability in grid-constrained locations.
• Portfolios of projects must achieve at least 15% measured energy savings.
• The Pay for Performance Program is intended to be delivered to participating households through aggregators managed by a statewide implementer.
• Payments to aggregators are based on energy savings measured at the meter of properties completing HOMES projects. This ensures the HOMES Program only pays for actual energy savings.
• Participating households should expect to receive rebates as a discount on eligible project costs at the time of installation.
• The CEC is exploring opportunities to integrate this program with existing energy programs led by state and local agencies as well as utilities.

CA-TREC Award and Program

• The DOE awarded $10.3 million to California for grants that support residential energy contractor training and program administration in December 2024:
  • Grant funding available: $9.3 million for up to 10 grants.
  • The CEC expects to release a solicitation in 2025.
• CA-TREC grants will fund training for residential energy contractors who install energy improvements to support state and federal programs. 

The grants will help reduce training barriers by expanding apprenticeship programs, providing money to travel to training, and/or covering the cost of required tools.

Home Electrification and Appliance Rebates (HEEHRA) Program 

In July 2024, the CEC issued a request for public comment and held a public workshop to solicit public feedback on HEEHRA Phase I Program design. Public comments were incorporated into the HEEHRA Phase I Program and its Implementation Blueprint Plans, which were documents the DOE approved prior to program launch.  

In December 2024, the CEC issued a RFI and held a public workshop to solicit public feedback on HEEHRA Phase II Program design. Public feedback is being incorporated into the CEC’s HEEHRA Phase II Program application to DOE.

Home Efficiency Rebates (HOMES) Program

In December 2023, CEC staff issued a Request for Information, proposing to utilize HOMES funding to support the Equitable Building Decarbonization Direct Install Program.

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 new Pay for Performance Program, in which rebate values will be determined based on actual energy savings measured at the utility meter. The workshop also solicited public feedback on Pay for Performance Program design. 

Also in March 2024, the CEC held a pre-solicitation workshop for the Equitable Building Decarbonization Direct Install Program. Following the workshop, the CEC released a Grant Funding Opportunity (GFO) in April 2024 and released a Notice of Proposed Award (NOPA) for Regional Administrators in August 2024. Agreements with the three Regional Administrators were approved at the November 2024 Business Meeting.

Training for Residential Energy Contractors (CA-TREC) Program

In August 2023, the CEC issued a Request for Information for the CA-TREC Program. 

In November 2023, the CEC conducted a survey to seek additional public input on program design. The Request for Information and survey results were incorporated into the CEC’s CA-TREC application to DOE. 

The Inflation Reduction Act, which authorized the funding for residential energy rebates and other programs that California and other states are now implementing, is available here: Section 50121, Section 50122, and Section 50123 of the Inflation Reduction Act of 2022 (H.R. 5376, 117th Congress).