What you need to know: Eligible Californians can apply to save thousands of dollars on home energy costs through rebates now available to homeowners as part of a federal rebate program. This is the first of two federal programs rolling out in California to make efficient, comfortable, and climate-resilient homes more affordable, and to cut pollution. 

SACRAMENTO - Governor Gavin Newsom announced today that qualified California homeowners can save money on energy bills and make their homes more energy efficient through new heat pump rebates. 

In addition to saving money on energy bills and increasing energy efficiency, the Home Electrification and Appliance Rebates (HEEHRA) aim to reduce greenhouse gas emissions and improve indoor air quality.

Income-qualified, single-family homeowners may receive rebates of up to $8,000 to reduce the cost of purchasing and installing a new, energy-efficient home heating and cooling heat pump. Rebates for multifamily building owners for a wider array of electric appliances became available on October 8, and rebates for single family homeowners became available on November 12, 2024.

“Thousands of dollars are now available for California homeowners to install heat pumps, making your home more energy-efficient and reducing your energy bills by hundreds of dollars each year. With these new rebates made possible by the Biden-Harris administration, Californians can save money and take real climate action.” - Governor Gavin Newsom

Californians can find more programs to save money and take climate action at climateaction.ca.gov.

“We’re excited to announce that owners of single-family homes may apply for HEEHRA rebates on the purchase and installation of an energy efficient heat pump HVAC,” said CEC Commissioner Andrew McAllister. “These units make homes more comfortable and can reduce electricity use by up to 75%, compared to electric resistance heating such as furnaces. They also work as air conditioners, which an increasing number of Californians now need due to the effects of climate change. HEEHRA helps put this dual-use clean technology within reach of more Californians.”

The rebates are made possible by the Biden-Harris administration’s historic Inflation Reduction Act (IRA) and is managed by the California Energy Commission (CEC). The CEC is distributing the first phase of funds through TECH Clean California.

“California was an early mover in setting up and launching their Home Energy Rebates. Now, mere weeks after making the program available for multifamily buildings, they are expanding it to single-family homeowners,” said Keishaa Austin, Principal Deputy Director of the U.S. Department of Energy’s Office of State and Community Energy Programs. “Starting today, thanks to the California Energy Commission’s continued commitment to the residents it serves, low- and middle-income Californian homeowners can apply to save thousands of dollars on energy-saving heat pump HVAC units.”

Who qualifies, and for how much

California homeowners with household incomes between 80% and 150% area median income (AMI) will be eligible for up to $4,000. Those with incomes less than 80% AMI will be eligible for up to $8,000. Applicants can find their AMI here and begin their application here.

The rebates can be added to other incentives for even more savings on home electric appliances and equipment. 

For more information on rebates and customer eligibility, visit techcleanca.com/heehra.