News

Biden-Harris Administration Announces Launch Of First Phase Of Federal Home Energy Subsidy Program in California

Oct 10, 2024Leave a message

The U.S. Department of Energy (DOE) announced October 8 that California will launch the first federal home energy rebate program, backed by the Inflation Reduction Act. California is launching the Home Electrification and Appliance Rebate (HEAR) portion of the rebate program, resulting in savings on energy efficiency improvements.

California's launch is part of the Biden-Harris Administration's nationwide initiative to provide $8.8 billion in federal funding to states, territories, and tribes to lower energy costs for American households by reducing the cost of installing cost-saving measures such as heat pumps and improving efficiency, electrical panels, and insulation, which helps save on housing costs. These energy-saving measures will save American households up to $1 billion in energy costs annually and support approximately 50,000 jobs in U.S. residential construction, manufacturing, and other industries. These investments also advance the President's Justice40 Initiative, which sets a goal that 40% of the overall benefits of certain federal climate, clean energy, affordable and sustainable housing, and other investments flow to disadvantaged communities that have been marginalized by underinvestment and overburdened by pollution.

"California has long been at the forefront of addressing climate change and improving energy efficiency," said U.S. Department of Energy Under Secretary David M. Turk. "The Department of Energy is pleased to provide California with nearly $300 million through the HEAR program. This investment will build on California's strong foundation and help thousands of additional residents enjoy lower energy bills and cleaner air while strengthening our collective fight against climate change."

"Home energy subsidies for clean, energy-efficient appliances and upgrades are good for the planet because they help reduce pollution, but more importantly, they're good for Californians because they save money through lower energy bills," said Senior Advisor John Podesta.

"California is leading the way in saving people money while taking climate action," said California Governor Gavin Newsom. "With the help of the Biden-Harris Administration and the historic inflation-reduction bill, Californians can now get up to thousands of dollars to switch to energy-efficient appliances. It's never been easier to save money and fight the climate crisis."

"Electrifying and upgrading appliances is not only good for consumers' wallets, it's also good for our planet," said U.S. Senator Alex Padilla. "Thanks to the historic Lower Inflation Act, the Home Electrification and Appliance Rebate Program will help working families switch to sustainable, energy-efficient appliances-from home HVAC systems to water heaters-to lower electricity costs, improve indoor air quality, and reduce harmful emissions."

"This program from the Department of Energy and CEC will ensure California families can afford energy-efficient appliances that save money on their energy bills, reduce greenhouse gas emissions, and improve home air quality," said U.S. Senator Laphonza Butler. "I applaud the Biden-Harris Administration for investing to ensure families are equipped to adapt to a changing climate."

"Existing buildings are one of the hardest parts of the real estate market to decarbonize and reduce the impacts of climate change. That's why we're so aggressive in supporting federal home energy rebates for Californians who want to switch to cleaner, more efficient appliances and equipment," said Commissioner Andrew McAllister, head of energy efficiency at the California Energy Commission. "Starting this week, California will open applications for federally funded rebates, thanks to close collaboration with the Department of Energy, to make low-carbon technologies like heat pumps available to more Americans." "

Many Americans spend a significant portion of their monthly income on heating, cooling, and powering their homes. To advance the goals of the rebate program, the Department of Energy requires states and territories to allocate at least half of the rebate to low-income households, those earning at or below 80% of their area median income, which is expected to benefit many households in disadvantaged communities. States and territories must also submit community benefit plans to ensure the provision of good jobs and other economic opportunities. To help consumers understand the situation and access resources, the Department of Energy recently released a framework for a consumer bill of rights and encourages state, territorial, and tribal subsidy programs to adopt the framework.

National Energy Network learned that eligible multifamily owners can save up to $14,000 per home, including up to:

Energy Star certified heat pump HVAC costs $8,000.

Electrical panel $4,000.

Wire costs $2,500.

An Energy Star certified heat pump water heater costs $1,750.

840 $ to buy an ENERGY STAR certified electric stove, range, cooktop or oven

ENERGY STAR certified electric heat pump clothes dryer for $840.

Send Inquiry