New York Becomes First State to Offer U.S. Department of Energy Home Energy Rebate Funding; Funds Now Available Through State’s EmPower+ Program

Advances Climate Act Goal to Reduce Greenhouse Gas Emissions by 85 Percent by 2050

Governor Kathy Hochul on May 30th, joined U.S. Department of Energy (DOE) Secretary Granholm and White House Senior Advisor John Podesta at the Andromeda Community Initiative in Queens to celebrate New York State becoming the first state in the nation to offer the first phase of Inflation Reduction Act (IRA) Home Electrification and Appliance Rebates (HEAR) Program funding to consumers. The initial $39.6 million formula grant will expand the reach of New York’s EmPower+ program by allowing more low-income families to improve their homes with energy efficiency and electrification upgrades that will reduce energy costs and transition away from burning fossil fuels in their homes. On May 30th's announcement supports the State’s nation-leading Climate Leadership and Community Protection Act (Climate Act) goal to reduce greenhouse gas emissions by 85 percent by 2050 and requirement for at least 35 percent, with a goal of 40 percent of the benefits of clean energy investments supporting disadvantaged communities.

“As the first state in the nation to offer these Inflation Reduction Act rebates, we are expanding access to home improvements that will save New Yorkers money on their energy bills and reduce our reliance on fossil fuels,” Governor Hochul said. “Thanks to our strong partnership between New York State, the Biden Administration, and U.S. Department of Energy, we are making important progress to make the clean energy transition affordable for all New Yorkers.”

U.S. Secretary of Energy Jennifer M. Granholm said, “From tax credits to rebates, the Biden-Harris Administration is determined to lower costs for American families and change the economics of home energy bill. New York is leading the charge as states across the country gear up to launch their Home Energy Rebates program— delivering jobs, savings, and healthier homes.”

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On May 30th’s announcement represents the first step in New York State deploying these IRA rebates to residents. Funding for the full portfolio of IRA Home Energy Rebate programs and deployment of additional rebates is expected later this year. The State is eligible to receive a total of $317.7 million through the DOE’s IRA Home Energy Rebate programs: $159.3 million for the Home Efficiency Rebates program and $158.4 million for HEAR program.

In April 2024, the U.S DOE approved the New York State Energy Research and Development Authority’s (NYSERDA) partial-scope application for this initial funding, which allows NYSERDA’s low income EmPower+ program to expand its current reach by providing funding for additional energy efficiency and beneficial electrification improvements, such as insulation and air sealing, heat pumps for space and water heating, and any necessary electrical upgrades to support those improvements.

Beginning from May 30th, eligible owners of one- to four-family households that have a household income below 80 percent of the Area Median Income or participate in a utility payment assistance program will automatically be enrolled to benefit from IRA HEAR incentives when they apply to the EmPower+ program. Incentives are provided to residents through EmPower+ contractors to reduce the cost of installing energy efficiency and electrification upgrades in a home or apartment, making them more affordable for New Yorkers. For more information including the application process and eligibility requirements, please visit NYSERDA’s website.

NYSERDA is currently working towards developing and submitting the full HEAR application to enable rebate offers to moderate-income residents, up to 150 percent of area median income, and to owners of larger low- and moderate-income multifamily buildings, including high-efficiency electric appliance rebates.

“As the first state in the nation to offer these Inflation Reduction Act rebates, we are expanding access to home improvements that will save New Yorkers money on their energy bills and reduce our reliance on fossil fuels.” -- Governor Hochul

NYSERDA President and CEO Doreen M. Harris said, “The Inflation Reduction Act will be critical in helping New Yorkers make affordable home efficiency upgrades while also leveraging the state’s strong commitment to reduce emissions and confront the global challenge of climate change. With this funding, the State’s expanded EmPower+ program will focus on those who need assistance the most by providing the opportunity to reap the benefits of high-performance, energy-saving measures throughout their homes.”

Senate Majority Leader Charles Schumer said, “The Home Electrification and Appliance Rebates/HEAR program is the secret sauce of our groundbreaking Inflation Reduction Act: it saves consumers money on energy costs while reducing the polluting greenhouse gasses driving global warming. With this $40 million federal boost, the HEAR program will reduce the cost of installing energy efficiency and electrification upgrades in a home or apartment, making them more affordable for New Yorkers while radically reducing carbon pollution. I am proud to stand with Secretary Granholm and the Biden administration to announce this major investment in clean energy and environmental justice and thank Governor Hochul for helping New York achieve a healthier and brighter future.”

House Minority Leader Hakeem Jeffries said, “This $39.6 million in Inflation Reduction Act rebate funding will allow New Yorkers to breathe cleaner, safer air, put money back in the pockets of families and help bring this nation-leading climate plan to life. In the last Congress, House Democrats, in partnership with President Biden and Senate Democrats, passed the transformational Inflation Reduction Act to create the largest investment in combating the climate crisis in the history of the world. I am grateful to President Biden, the U.S. Department of Energy and Governor Hochul for their partnership in securing this important funding for New York.”

Representative Grace Meng said, “Thank you to Governor Hochul, Secretary Granholm and Senior Advisor Podesta for coming to Queens to commemorate these millions of dollars for home energy efficiency and electrification upgrades. As New York’s representative on the House of Representatives’ Regional Leadership Council – which works to promote and implement legislation signed by President Biden – I’m thrilled that our state will be the first in the nation to offer this rebate funding. It will go a long way toward reducing energy costs and ensuring a cleaner, healthier future for New Yorkers. I’m so proud that I helped to pass the Bipartisan Infrastructure Law which continues to deliver needed resources across our state.”

Representative Adriano Espaillat said, “As we enter the summer months, I commend Governor Hochul on May 30th's announcement expanding New York's EmPower+program, making it more accessible for low-income families who rely on this funding to ensure energy efficiency for their homes. New York is once again leading the way in innovation and implementation of the IRA Home Electrification and Appliance Rebates (HEAR) Program to put families first and make energy efficiency more affordable for all.”

Representative Joe Morelle said, “Too many families continue to feel the pressure of rising costs. From healthcare to prescription drugs to heating and cooling their homes and other basic necessities, I’ve heard horrific stories of people cutting corners to make ends meet, something we cannot allow to continue. Thanks to federal funds I secured as a part of the Inflation Reduction Act, this Department of Energy program will help ensure people’s homes are updated with energy-saving and cost-saving technologies, all at a reduced cost. I’m grateful to Governor Hochul for her leadership, and I look forward to continuing our work together to uplift families in Monroe County and across New York State.”

Representative Jamaal Bowman said, “We need to make bold investments in renewable energy everywhere—from our schools to our homes. Heating our houses in the winter, keeping them cool in the summer, and using our stoves and other appliances should not contribute to the climate catastrophe we are facing. I am so excited to join Governor Hochul and Secretary Granholm in announcing nearly $40 million in funding now available to New Yorkers for home energy efficiency and electrification upgrades and rebates—with even more to come. I am especially proud that these investments focus on low-income New Yorkers and marginalized groups who are most impacted by the harms of the climate crisis and the burden of high electricity bills. The Home Energy Rebate Programs are a direct result of our transformational Inflation Reduction Act, which is consistently putting money back in people’s pockets. This new funding will lower costs for hardworking New Yorkers and support New York in reaching its climate goals.”

Representative Ritchie Torres said, “I am proud to join Governor Hochul in announcing a massive $39.6 million investment in energy rebate funding for low-income New Yorkers. This money is the direct result of the unprecedented green energy investments in President Joe Biden and Congressional Democrats’ landmark Infrastructure Reduction Act (IRA). The increased energy efficiency brought by the HEAR Program’s retrofits will save low-income Bronxites money. It will also reduce carbon emissions – especially important in a borough with the highest rates of asthma and other respiratory illnesses in the city. This program is an excellent example of how Democratic policy is working to impact the daily lives of those in our district and beyond. It is often a privilege to think about energy efficiency when considering housing, due to the limited access of resources, but with the IRA it is feasible. For a community that already struggles with accessibility, this is a step in the right direction.”

Representative Dan Goldman said, “As we transition into a cleaner, greener economy, it is vital that no one – regardless of their circumstance – is left behind. Through President Biden and House Democrats' Inflation Reduction Act, we can finally ensure that everyone has access to the energy and efficiency upgrades that have revolutionized our nation's green infrastructure. I'm proud that under Governor Kathy Hochul's leadership, New York is the first in the nation to roll out these rebates, allowing low-income families across the state to participate in our nation's green transition.”

Building Performance Contractors Association President Hal Smith said, “On behalf of New York’s Building Performance contractors, hats off to everyone who has helped to lead the way for the whole country. It is a great time to be a New Yorker!”

Rewiring America CEO Ari Matusiak said, “Today marks a landmark moment in the implementation of the largest climate bill in history. We congratulate New York for becoming the first state in the nation to roll out the Home Electrification and Appliance Rebates and applaud the Department of Energy for prioritizing getting these dollars out the door and into communities. By crafting a program that meets the needs of its communities and directing this first tranche of funding exclusively to low-income households that stand to benefit the most from lower energy bills and healthier homes, New York is taking an important step in ensuring that the transition to an all-electric future is an equitable one. We’re eager to see the next batch of rebate programs roll out in the coming months and to see states follow New York’s lead in thoughtfully designing effective programs that make the most of this historic opportunity.”

Climate & Energy at Natural Resources Defense Council New York Policy Director Samantha Wilt said, “New York is the first state to leverage the IRA's Home Electrification and Appliance Rebates Program to invest in the homes of the state's most vulnerable families while cutting climate pollution. These funds are being invested in a way that drives benefits to the New Yorkers who need them most and ensures that the harms from burning fossil fuels are reduced in disadvantaged communities. With this investment, New York will be delivering more all-electric appliances, insulation, and wiring upgrades for seriously improved, zero-emission homes."

Buildings are one of the most significant sources of greenhouse gas emissions in New York State and through NYSERDA and utility programs over $6.8 billion is being invested to decarbonize buildings. By improving energy efficiency in buildings and advancing statewide installations of onsite storage, renewables and electric vehicle charging equipment, the State will reduce its carbon pollution and advance toward the ambitious target of reducing on-site energy consumption by 185 TBtu by 2025, the equivalent of powering 1.8 million homes.

Funding for EmPower+ is provided through the Enacted FY 2023-2024 State Budget, the State’s Clean Energy Fund, the Regional Greenhouse Gas Initiative, and the Federal Inflation Reduction Act. More information about the program and associated funding can be found on NYSERDA's website.

New York State's Nation-Leading Climate Plan

New York State's climate agenda calls for an orderly and just transition that creates family-sustaining jobs, continues to foster a green economy across all sectors and ensures that at least 35 percent, with a goal of 40 percent, of the benefits of clean energy investments are directed to disadvantaged communities. Guided by some of the nation’s most aggressive climate and clean energy initiatives, New York is advancing a suite of efforts – including the New York Cap-and-Invest program (NYCI) and other complementary policies – to reduce greenhouse gas emissions 40 percent by 2030 and 85 percent by 2050 from 1990 levels. New York is also on a path to achieving a zero-emission electricity sector by 2040, including 70 percent renewable energy generation by 2030, and economywide carbon neutrality by mid-century. A cornerstone of this transition is New York's unprecedented clean energy investments, including more than $28 billion in 61 large-scale renewable and transmission projects across the State, $6.8 billion to reduce building emissions, $3.3 billion to scale up solar, nearly $3 billion for clean transportation initiatives and over $2 billion in NY Green Bank commitments. These and other investments are supporting more than 170,000 jobs in New York’s clean energy sector as of 2022 and over 3,000 percent growth in the distributed solar sector since 2011. To reduce greenhouse gas emissions and improve air quality, New York also adopted zero-emission vehicle regulations, including requiring all new passenger cars and light-duty trucks sold in the State be zero emission by 2035. Partnerships are continuing to advance New York’s climate action with more than 400 registered and more than 130 certified Climate Smart Communities, nearly 500 Clean Energy Communities, and the State’s largest community air monitoring initiative in 10 disadvantaged communities across the State to help target air pollution and combat climate change.