Watch Out For IRA Rebate Scams!

Unscrupulous people are contacting homeowners and property owners claiming they represent the California Energy Commission (CEC) and/or the Inflation Reduction Act (IRA) rebates for home energy upgrades. The only federal, IRA-funded home electrification rebates currently available to Californians are HEEHRA rebates provided through specially trained TECH Clean California contractors. Do not provide your financial information to any person or business offering to submit rebates on your behalf. Do not allow contractors into your home who are not on the TECH-certified and HEEHRA-trained contractor list. 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, California’s Office of the Attorney General, the Better Business Bureau or your county’s District Attorney’s Office.

General

The Federal Inflation Reduction Act (IRA) provides states with money for the Home Energy Rebates programs, which include Homeowner Managing Energy Savings (HOMES), Home Electrification and Appliance Rebates (HEEHRA, in California), and Training Residential Energy Contractors (CA-TREC). The California Energy Commission (CEC) manages these programs within the state. 

On October 8, 2024, the CEC launched the multifamily portion of the HEEHRA Phase I program. Rebates for new heat pumps for space heating and cooling in qualifying single-family homes are available as of November 12, 2024. HEEHRA Phase I rebates for qualified single-family homes are available through the TECH Clean California initiative and must be delivered through a HEEHRA-trained and TECH-certified contractor. Information about how to apply, eligible appliances, and income requirements can be found on the HEEHRA Program for TECH Clean California. Contractors can be found at Switch Is On.  Program information can be found on the CEC’s IRA.

HEEHRA Phase I launched on October 8 and rebates for qualified homeowners are available through the TECH Clean California initiative and must be delivered through a HEEHRA-trained and TECH-certified contractor. Applications for multifamily property owners became available on October 8, 2024. The program began accepting applications for single-family retrofits on November 12, 2024. Information about how to apply, eligible appliances, and income requirements can be found on the HEEHRA Program for TECH Clean California. Contractors can be found at Switch Is On.  Program information can be found on the CEC’s IRA. 

HOMES will provide incentives to help homeowners decarbonize and increase their homes’ energy efficiency. The CEC applied to the U.S. Department of Energy (DOE) in August 2024 to fund two programs: the Equitable Building Decarbonization Direct Install and Pay for Performance. The first program will provide no-cost energy retrofits to low-income households throughout the state, can be found on the Equitable Building Decarbonization Program page. “Pay for performance” means the amount of the rebate is based on the actual energy savings that result from the efficiency project. The CEC’s HOMES application has been approved by the DOE and the CEC has been awarded $291 million. The Equitable Building Decarbonization Direct Install Program is expected to launch in 2025.

CA-TREC will provide grants to support workforce development for home electrification projects. CA-TREC will help ensure skilled contractors are trained to carry out installations incentivized through HOMES, HEEHRA, and other residential improvement programs. CEC has submitted their application to the Department of Energy for review and consideration.

On October 8, 2024, the California Energy Commission launched the multifamily portion of the HEEHRA Phase I program. Rebates for new heat pumps for space heating and cooling in single-family homes are available as of November 12, 2024.  HEEHRA Phase I rebates for qualified homeowners are available through the TECH Clean California initiative and must be delivered through a HEEHRA-trained and TECH-certified contractor. If you are a contractor interested in delivering HEEHRA rebates, learn more on TECH’s HEEHRA Program and on the Switch Is On.  

Please see the full list of eligible equipment and appliances, as well as information on how to apply and income qualification information, on TECH Clean California’s HEEHRA Program. Contractors can be found at Switch Is On.

HEEHRA Phase I rebates through TECH Clean California will be available to: 

  • Owners of income-eligible, single-family households (including manufactured or mobile homes, duplexes, single condominiums, and other properties with four or fewer residential units) who either reside 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.

Income eligibility for HEEHRA is determined by the federal Inflation Reduction Act (IRA) that funds the program. IRA statute limits eligibility to low-to-moderate income households.

For more on the HEEHRA rebates, income eligibility, and contractor training, go to TECH Clean California’s HEEHRA Program.

The California Energy Commission (CEC) applied to the U.S. Department of Energy (DOE) in August 2024 to fund two HOMES Programs: Equitable Building Decarbonization Direct Install and Pay for Performance.

More information on the Equitable Building Decarbonization Direct Install Program, which will provide no-cost energy retrofits to low-income households throughout the state, can be found on the Equitable Building Decarbonization Program. “Pay for performance” means the size of the rebate is based on the actual energy savings that result from the efficiency project. The CEC’s HOMES application is currently under review by the DOE.

CA-TREC will provide grants to support and develop the needed workforce to install home efficiency and electrification improvements across California. The California Energy Commission (CEC) submitted its TREC application to the Department of Energy in January 2024 and is still under review.

For more information on the development process and timelines for these programs, please see the CEC’s IRA Docket Log. You can receive up-to-date information when you subscribe to the Federal IRA Residential Incentives email list on the right-hand side of that page. You will receive announcements on program developments, including when rebate applications will open.

No. Rebates are not available for appliances or equipment purchased or installed before applications are provided a reservation 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-enrolled contractor.

HEEHRA: In January 2024, California was one of the first four states to apply for HEEHRA funds. The Department of Energy (DOE) provided preliminary approval of California’s initial application in June 2024. In July 2024, the California Energy Commission (CEC) held a public workshop on a Draft Community Benefits Plan. Workshop presentations and recordings are available on the CEC’s Past Events. In August 2024, the CEC submitted four mandatory Blueprint Plans to the DOE for approval before launching. The Blueprint Plans provide details on the implementation including how the state-will conduct outreach, protect consumer data, ensure equitable, widespread benefits from the programs, and invest in workforce development, among other program goals. These Blueprint Plans must be approved by the DOE before a state can offer rebates; HEEHRA Phase I Blueprint Plans were approved in October 2024. 

HEEHRA rebates for efficient electric equipment and appliances in income-qualified, multifamily properties became available in October 2024. Rebates for heat pumps for space heating and cooling for single-family homeowners became available in November 2024. The rebate application, information on consumer eligibility and qualifying equipment, and other details are available on the TECH Clean California’s HEEHRA Program. 

The public will have an opportunity to comment on the HEEHRA Phase II program at a CEC public workshop in winter 2024. 

In December 2023, the CEC asked for public input on its plans to incorporate California’s HOMES funding into the CEC’s Equitable Building Decarbonization Direct Install Program. In March 2024, responding to stakeholder feedback, the CEC held a public workshop exploring a pay for performance, measured-savings pathway for HOMES. Pay for performance means that the size of the rebate is based on the actual energy savings that result from the efficiency project. The CEC announced plans to split HOMES funding between the statewide EBD Direct Install Program and a Pay for Performance Program open to all income groups.

CEC submitted an application to DOE in August 2024 and is awaiting approval. 

In January 2024, California submitted its application for the CA-TREC grants. The CEC is awaiting approval by the DOE to launch grants for contractor training programs.

Yes, HEEHRA rebates can be combined with other rebates and incentives to help pay for equipment upgrades . Rules vary depending on the incentive and you should ask your contractor for guidance. Homeowners wishing to take a tax credit should contact a tax professional for federal and state tax rules and guidance.

For a list of other incentives that are available now, please see the FAQ response below to the question, “If my income does not meet the IRA rebate thresholds, are there other incentives available for my project?"

HEEHRA rebates are available now through TECH Clean California for income-qualified, multifamily properties. If you are or are not eligible for those rebates, you may be eligible for other federal, state, local, air district, and utility programs.

  • Financial assistance, rebates, and incentives are payments that cover all, or a portion, of the cost of equipment. See the links below for information on various incentive programs. 
    • Homeowner and Renter Energy Resources on the CEC website provides information on how to reduce greenhouse gas emission and improve energy efficiency of your home.
    • Energy Savings Assistance (ESA) Program is offered through utilities and provides no-cost weatherization services (such as weatherstripping of doors and windows or adding insulation) to customers who meet California Alternate Rates for Energy (CARE) income limits.
    • California Department of Community Services & Development administers energy efficiency and weatherization programs for qualifying low-income households.
    • The Switch Is On provides information on electrification and allows you to search for incentives in your zip code.
  • Tax credits for residential energy efficiency and clean energy projects were extended and expanded through the IRA
  • Financing refers to loans or equipment leases that must be paid back.
    • GoGreen Home Energy Financing is a state-administered, utility-supported program that provides affordable financing options and loans.
    • Home equity loans or home equity lines of credit offered through credit unions or banks can have attractive interest rates that make payments for home energy projects more affordable.

Check your utility, air district, tribe, and local government (county, city, town) websites for incentives for energy efficiency improvements, efficient electric equipment and appliances, and building decarbonization (activities and equipment that reduce greenhouse gas emissions from buildings). You may also be eligible for income-qualified programs that lower your utility bill rates, such as CARE/FERA. Your local utility website will have information on these programs, as well.

Visit the CEC’s Building and Home Energy Resource Hub. It provides a comprehensive list of information, guidance, rebates, and loans for homeowners and renters, contractors, or local governments.

HEEHRA: HEEHRA rebates are only available to low-to-moderate income households. Low-income is defined as household with income less than 80 percent of the area median income (AMI), while moderate-income household is between 80 and 150 percent of AMI. An income verification tool is available for customers at HEEHRA Income Portal.

HOMES: The Department of Energy (DOE) requires that 41% of rebate funding serve low-income households and 10% serve low-income households in multi-family housing. California’s application to the DOE proposes using 60 percent of HOMES funding for low-income residents through the Equitable Building Decarbonization Direct Install Program. The remaining 40 percent of HOMES funding is proposed for a new Pay for Performance Program, which does not have any income restrictions for applicants.

AMI is determined by county of residence, based on data from the U.S. Department of Housing and Urban Development (HUD). Contractors will not verify income; instead, homeowners will upload proof of income to a secure online portal run by TECH Clean California, which is administering the HEEHRA program in California. An income verification tool is available for customers at HEEHRA Income Portal.

Income verification is based on the dwelling unit’s (house, apartment, condo, etc.) gross annual income for all adults (ages 18+) living in the dwelling unit/household. Gross annual income will be the amount adults in your household earn each year before any taxes or other deductions are applied.

The Department of Energy defines an aggregator for the IRA-funded energy rebate programs as “an entity that engages with multiple single-family homes and/or multifamily properties for the purpose of combining or streamlining projects as allowed by the state.”

For the HOMES Program, an “aggregator” refers to a contractor, project developer, energy consultant, energy technology company, or other entity that completes home upgrade projects across a portfolio of homes to receive rebates. Aggregators must be pre-approved by the state to participate in Inflation Reduction Act (IRA) programs.

For the HEEHRA Program, a state-approved aggregator can be a governmental, commercial, or nonprofit entity carrying out a qualified electrification project on behalf of an eligible home or multifamily property owner. An aggregator must comply with all program requirements.

Prospective aggregators should refer to the DOE's Program Guidance.  As California’s HOMES Program and next phase of the HEEHRA Program are under development, potential aggregators are encouraged to subscribe to the Federal IRA Residential Incentives email list on this page (right-hand side) for program announcements.

While renters are not able to apply for rebates themselves, they can encourage or share HEEHRA program information with their property owners. In addition, tenant incomes or deed restrictions will be used to verify income eligibility and rebate amount. Property owners will receive the rebates to help cover the cost of upgrades, while renters will benefit from increased comfort, more energy efficient equipment, new appliances, and improved indoor air quality.  

Both single-family and multifamily buildings with tenants are eligible for Inflation Reduction Act (IRA) Rebates. For the HEEHRA Phase I Program, single-family homes are eligible for a rebate up to $8,000 for a heat pump for space heating and cooling. Multifamily buildings are eligible for a maximum rebate of $14,000 per dwelling unit for a variety of home electrification upgrades. To qualify for the HEEHRA Program, at least 50 percent of the building’s apartments need to be occupied by low- and/or middle-income households. Property owners can visit TECH Clean California’s HEEHRA Program to learn more. 

Owners and landlords of low-income apartments or other affordable rental properties who receive an income-qualified rebate are not allowed to raise rents due to energy upgrades or evict tenants to rent at higher rents for a minimum of two years. Details on renter protections for HEEHRA Phase I are outlined in the Consumer Bill of Rights, which is included on every installation invoice, as well as described within the HEEHRA Phase I Program Consumer Protection Plan.

The first phase of HEEHRA rebates will only be available through TECH Clean California HEEHRA trained and TECH Certified contractors. HEEHRA Phase II, which is currently under program development, will expand options for purchase. Learn more about HEEHRA Phase I rebates and what is available to California homeowners on the HEEHRA TECH program.

HEEHRA Phase II is under development. The California Energy Commission (CEC) will seek public input and hold a workshop later in 2024, which will inform the CEC’s HEEHRA Phase II application to the DOE. HEEHRA Phase II will provide $152 million in rebates. You can sign up for the list serve on the CEC’s IRA rebates program page to receive updates.

To get federal rebates to Californians as quickly as possible, the California Energy Commission is leveraging the established TECH Clean California electrification program to provide rebates statewide.

TECH Clean California will provide a list of eligible equipment to contractors during the rebate application process. All rebated equipment must be ENERGY STAR® certified unless exempted.

To receive a HEEHRA Phase I rebate, home and building owners must work with a HEEHRA-trained and enrolled contractor. Go to the Switch Is On’s Contractor Finder to find a contractor near you that participates in the HEEHRA Program. For additional program information, visit the TECH Clean California HEEHRA Program. 

For more information and guidance on choosing a contractor, please visit the California Energy Commission’s Homeowner and Energy Resources Center

Eligible Equipment and Homes

HEEHRA offers rebates for low- and moderate-income households, which means households with incomes of less than 80% area median income (AMI) and up to150% AMI, respectively. 

An income verification tool is available for customers at HEEHRA Income Portal.

Multifamily HEEHRA rebates are available for: 

  • Low-income multifamily properties categorized as ≤80 percent AMI (HEEHRA rebates can cover up to 100% of eligible project costs, not to exceed $14,000 per unit) where:
    • at least 66 percent of occupied living units are at or below 80 percent AMI, where clearly listed on a TECH-HEEHRA approved Federal, State, or Local Deed Restriction/Regulatory Agreement.
      OR
    • at least 66 percent of occupied living units are at or below 80% AMI, as verified by individual household income documentation, evidence of Section 8, and/or proxy documentation of categorical eligibility. 
  • Moderate income multifamily properties categorized as ≤150 percent AMI (HEEHRA rebates can cover up to 50% of eligible project costs, not to exceed $14,000 per unit) 
    In a disadvantaged community (DAC) and either:
    • at least 50% of occupied living units are at or below 150 percent AMI, where clearly listed on a TECH-HEERHA approved Federal, State, or Local Deed Restriction/Regulatory Agreement. 
      OR
    • at least 50 percent of occupied living units are at or below 150 percent AMI, as verified by individual household income documentation, evidence of Section 8, and/or proxy documentation of categorical eligibility

Multifamily HEEHRA rebates are available for:  

  • In a disadvantaged community (DAC) and either
    • at least 50% of occupied living units are at or below 150 percent AMI, where clearly listed on a TECH-HEERHA approved Federal, State, or Local Deed Restriction/Regulatory Agreement. OR
    • at least 50 percent of occupied living units are at or below 150 percent AMI, as verified by individual household income documentation, evidence of Section 8, and/or proxy documentation of categorical eligibility

As seen in the table below, income-qualified multifamily property owners can now get up to $14,000 per dwelling unit to upgrade the equipment and appliances in their properties:

Multifamily HEEHRA Rebates: 

Qualified Products

Income-Qualified HEEHRA Rebates

Two-Speed Heat Pump for Space Heating or Cooling (HP HVAC) - ENERGY STAR® 

 $7,500  

Variable Speed Heat Pump for Space Heating or Cooling (HP HVAC) - ENERGY STAR® 

 $8,000  

Heat Pump Water Heater (HPWH) (Electric to Electric) - ENERGY STAR®

 $700  

In-Unit Heat Pump Water Heater (HPWH) - ENERGY STAR®

 $1,750  

Central HPWH 

 $1,750*  

Electric Load Service Center 

 $4,000*  

Electric Wiring 

 $1,000 to $2,500** 

Electric Stove, Cooktop, Range, or Oven - ENERGY STAR®

 $840  

Heat Pump Clothes Dryer - ENERGY STAR®

 $840  

*per dwelling unit served, sized for complete electrification 
**$1,000 per new circuit, up to $2,500 per dwelling unit

 
Single-family Rebates:

Starting on November 12, 2024, income-qualified single-family homeowners are eligible to receive rebates for an ENERGY STAR ® certified electric heat pump for space heating and cooling (HVAC):  

  • $8,000 for households earning under 80% of the local AMI. 
  • $4,000 for households earning between 80% and 150% of the local AMI. 

Rebates cannot exceed the total project cost for low-income households and cannot exceed 50% of the total project cost for moderate-income households. Project costs include equipment and labor costs. 

HEEHRA Phase I leverages an existing, successful, statewide program, TECH Clean California, to distribute rebates to income-qualified single-family and multifamily homes as fast as possible. HEEHRA Phase I is designed to align with TECH’s existing incentive processing infrastructure and network of 100s of specially trained and certified contractors statewide, particularly those experienced with installing air source (HVAC) and water heat pumps.   

The California Energy Commission is designing HEEHRA Phase II and will be soliciting public input on program design later in 2024.

Multifamily properties upgrading 5 or more units can receive rebates of up to $840 per unit to replace a gas stove or oven with an ENERGY STAR® certified electric cooktop, stove, or range, including induction stoves.

There are no HEEHRA rebates available for cooking appliances or equipment for single-family homeowners. 

Single-family homeowners are not eligible for upgrades for electric panels or wiring in Phase I. 

The California Energy Commission (CEC) will solicit public input for HEEHRA Phase II program design later this year. CEC welcomes input from homeowners on which upgrades would be most useful for Californians.

ENERGY STAR®  certified two-speed and variable-speed heat pumps are eligible for HEEHRA rebates. Cold-climate certification is not required.

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 paper check from the contractor after installation. The TECH program administrator currently reviews rebate applications for single-family air heating and cooling (HVAC) incentives within an average of 20 days. Timelines from claim submittal to payment are regularly updated on the TECH Clean California public reporting website.

For Contractors

HEEHRA rebates are funded by the Inflation Reduction Act (IRA) and are overseen by the Department of Energy and managed by the California Energy Commission. TECH Clean California is administering HEEHRA Phase I to provide electric equipment and appliance rebates to income-eligible single-family households, and owners and operators of income-eligible multifamily properties. HEEHRA Phase I rebates are only available through TECH enrolled and HEEHRA trained contractors. The HEEHRA Program also invests in contractor workforce development and training through free skills training workshops and webinars, among other opportunities. 

HEEHRA contractors are eligible to receive a $200 installer incentive for each heat pump for space heating and cooling installed in a single-family household with an income below 80% of the area median income (AMI). An income verification tool is available for customers at HEEHRA Income Portal.

To become a HEEHRA and TECH enrolled contractor, register on The Switch Is On’s Contractor Finder. After registering and completing both the HEEHRA and TECH online program training, you  will receive HEEHRA and TECH badges and be listed as an eligible contractor on The Switch Is On. The Contractor Finder lists the company contact information for contractors enrolled in HEEHRA and TECH Clean California. Customers use the database to find contractors allowed to install eligible equipment and receive rebates. 

Yes, the HEEHRA Program will offer an installer incentive of $200 to contractors who install eligible heat pump equipment into a low-income, single-family household. The contractor must be enrolled in TECH Clean California and HEEHRA-trained. To learn about training and certification, please visit The Switch Is On.

The California Energy Commission also applied to the Department of Energy for more than $10 million in grant funding from the IRA’s TREC Program. California’s TREC Program (called CA-TREC) will support general workforce development for residential electrification projects, as well as help ensure skilled contractors are trained to carry out installations through HOMES, HEEHRA, and other residential improvement programs.  California's CA-TREC Program application is currently under review by the DOE.

Please subscribe to the Federal IRA Residential Incentives updates on our IRA Energy Rebate Programs .

The CEC applied to the DOE in January 2024 for more than $10 million in grant funding from the IRA’s Training for Residential Energy Contractors program. California’s TREC Program (called CA-TREC) will provide grants to support and develop the needed workforce to install home efficiency and electrification improvements across California. CA-TREC will support workforce development with grants for training and equipment for residential contractors. CA-TREC will help develop the workforce required to install equipment for homeowners participating in HOMES, HEEHRA, other residential upgrade programs.

California's CA-TREC Program application is currently under review by the DOE.

Please subscribe to the Federal IRA Residential Incentives email list on the right-hand side of this page for updates and announcements.

More Information

  • The California Energy Commission (CEC) IRA program  includes additional links to program details, announcements, and events. 
  • The TECH Clean California HEEHRA program provides information on income-eligibility and rebate requirements for low-to-moderate income Californian single- and multifamily homeowners.
  • The CEC’s Building and Home Energy Resource Hub provides information for homeowners and renters about water and space heating, cooking, electric vehicle charging, and more. For contractors, the Hub provides information about training, tools, and incentives. Local government representatives can turn to the Hub for information about model policies to support local decarbonization goals, permitting, training, and more.
  • The DOE's site for Home Energy Rebates includes a FAQ page with questions and answers on program overview, household and technology eligibility, state applications, and tribal applications.

Proceeding Information

Contact

Federal IRA Rebates and Incentives
IRAresidentialenergyrebates@energy.ca.gov

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