New California rebate program launched to cut home energy costs

A new rebate program could save California families up to $8,000 on an electric heat pump for home heating and cooling.

The Home Electrification and Appliance Rebates program is funded by the Biden administration’s Inflation Reduction Act.

Deana Carrillo, director of the Reliability, Renewable Energy and Decarbonization Incentives Division of the California Energy Commission, encouraged homeowners to replace their older, natural gas-powered systems.

“More efficient electric heat pumps can lower your energy bills,” Carrillo pointed out. “They’ll also help decarbonize your homes to make sure that the air in your home is cleaner.”

TECH data suggests that the median heat pump HVAC install in California costs almost $19,000. Families who make between 80% and 150% of the area median income qualify for a $4,000 rebate and those who make less are eligible for the full $8,000 rebate. Get more information at Tech Clean California’s page for the H-E-E-H-R-A program.

The program fights climate change by reducing reliance on natural gas, a fossil fuel, to heat homes and run power plants. Carrillo stressed more electric heat pumps should lower California’s carbon emissions.

“We need to be looking at using energy more efficiently,” Carrillo asserted. “That will reduce greenhouse gas emissions, both locally in your home and in our effort to fight climate change nationally.”

The state rolled out a program in October benefiting multifamily households. California expects to give out $15,000 rebates for single-family and multifamily households over the life of the program.

Written by Suzanne Potter.

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