Governor Hochul recently announced that New York State’s application to the HOMES energy rebate program from the Inflation Reduction Act has been accepted by the Department of Energy. This program is a major milestone for electrifying buildings and building a carbon-free economy. These rebates will make it much more affordable for people to purchase energy-efficient appliances such as air-source heat pumps, electrical panels, electric stoves, heat pump water heaters, and heat pump clothes dryers. These products will save consumers money and improve indoor air quality.
In 2022, President Biden and Congress passed the Inflation Reduction Act (IRA) into law. This legislation was the biggest investment in tackling the climate crisis that any nation has ever made. The IRA devoted $369 billion toward bolstering the clean energy economy and this program was one of the clearest examples of how this law was designed to be an affordable clean energy plan. NYLCV was a big proponent of the IRA and advocated for its passage.
Under this program, consumers will be able to receive up to $8,000 for an air source heat pump system, which could cover a third to half of the cost, depending on its size. The rebate program also offers a $1,750 rebate for a heat pump water heater and $840 for an induction stove or a heat pump clothes dryer. Switching all of these appliances to run on electricity in one’s home will increase the demand on the electrical system. This is why there is a rebate of $4,000 to upgrade one’s electrical panel.
While NYSERDA finalizes the way that this system works, mostly by expanding the EmPower+ program to provide additional energy efficiency and beneficial electrification improvements, there are also tax credits available from the IRA to help consumers lower their energy costs by lowering the costs of weatherizing your home or buying a new or used electric vehicle. This program is meant to help low and moderate-income households with earnings under 150% of their area’s median income. Those who do qualify will be eligible for up to $14,000 in total rebates.
Utilizing programs like these from the Inflation Reduction Act will help save people money, cut greenhouse gas emissions, and improve air quality. We’re proud that New York is the first state in the nation to have their application accepted by the Department of Energy and we look forward to working with NYSERDA to see the program fully implemented.