· energy efficient rebates · 3 min read
What we know about HEEHRA
The High-Efficiency Electric Home Rebate Act (HEEHRA) is a groundbreaking piece of legislation that's part of the larger Inflation Reduction Act. It's designed to make energy-efficient home upgrades more accessible for LMI households.
Low and Moderate-Income (LMI) households typically bear three times the energy burden (the portion of their income spent on home energy) compared to others. This disproportionate burden often leads to difficult choices between essential needs and energy bills. HEEHRA aims to alleviate this energy burden by focusing on electrification upgrades and offering substantial rebates, making a positive impact on both the environment and consumers’ wallets.
What is the High-Efficiency Electric Home Rebate Act?
The High-Efficiency Electric Home Rebate Act (HEEHRA) is a groundbreaking piece of legislation that’s part of the larger Inflation Reduction Act. It’s designed to make energy-efficient home upgrades more accessiblefo r LMI households. The act provides a full 100% credit for low-income households earning less than 80% of the state median income, and a 50% point-of-sale rebate for moderate-income households earning between 80% and 150% of the state’s median income.
What is covered undered the HEEHRA?
The act covers a range of products and services focused on Home Climate and Household Essential Appliances, specifically chosen to reduce energy consumption and costs.
Home Climate
Heat Pumps: Heating and cooling are responsible for almost half of residential energy costs. Upgrading to an Air Source Heat Pump heat pump HVAC system, which produces three times the amount of energy it uses, can significantly reduce heating and cooling costs, making homes more comfortable year-round.
Weatherization: Insulation and Sealant improvements aid in the efficiency of the HVAC unit. Proper insulation helps keep homes warm in winter and cool in summer, significantly cutting energy costs. Learn more about weatherization in our comprehensive guide.
Ventilation: Proper ventilation ensures healthy indoor air quality and aids in the efficiency of the HVAC unit, enhancing overall well-being for your home and its occupants.
Household Essential Appliances
Laundry: Heat Pump Clothes Dryers utilize the same heat pump technology as heat pumps and HPWHs, translating to savings on electricity bills, and a cooler laundry room.
Cooking: Electric Stoves are at least twice as efficient as gas stoves and produce much less waste heat that can make your kitchen uncomfortable in the summer.
Water Heating: Heating water accounts for nearly 20% of residential energy costs.HPWHs are three times more efficient, lowering water heating expenses significantly.
These provisions collectively offer up to $14,000 for low-income households and up to $8,000 for moderate-income households.
Check Your Eligibility with IRA Eligibility Calculator
Wondering how these provisions apply to you? The IRA Eligibility Calculator is a valuable tool to check your eligibility for HEEHRA and the rest of the Inflation Reduction Act. By entering specific details about your home and energy usage, you can get an estimate of the potential rebates and annual savings you could enjoy.
If not covered by HEERA, you’ll more than likely be eligible for the broader Energy Efficient Home Improvement Credit 25C. Visit Energy Efficient Home Upgrades to learn more.
Also, many of these items can also be eligible for state rebates, allowing you to stack them. Check the Database of State Incentives for Renewables & Efficiency for your eligibility for state-level rebates.
Conclusion
The High-Efficiency Electric Home Rebate Act (HEEHRA) represents a significant step towards energy efficiency and sustainability. By providing substantial rebates and focusing on key areas such as home climate and essential appliances, it makes energy-efficient upgrades more accessible to LMI households. Utilize the tools and resources mentioned in this article to explore how HEEHRA can benefit you and contribute to a greener future.