Arizona Rolls Out Home Electrification, Appliance Rebates Program

Arizona has become the second state in the U.S. to roll out the home electrification and appliance rebates (HEAR) portion of the Home Energy Rebates Program, an $8.8 billion federal scheme funded by the Inflation Reduction Act (IRA) to lower household energy costs and minimize emissions from homes.

Initially the state’s HEAR program will provide rebates for the installation of heat pumps to replace air conditioning units for Arizonans who meet the income criteria. At least half of the aid will go to those earning 80 percent or less of their area median income (AMI) as required by the Department of Energy (DOE), while the highest income to qualify is 150 percent of the AMI.

“At this stage, lower- and moderate-income owners of single-family homes facing extreme heat will be eligible for up to a $4,000 to $8,000 rebate on these new heat pumps”, the DOE said in a statement. “Later this fall, Arizona plans to roll out the remainder of its HEAR program, which will provide lower- and middle-income homeowners and renters with up to $14,000 in rebates to upgrade equipment and appliances. It will cover up to 100 percent of costs for lower-income families and up to 50 percent for moderate-income families (those earning between 80-150 percent of their area median income)”.

Arizona’s HEAR program is being implemented in partnership with community action agencies, including Wildfire AZ.

“Too many indoor heat-related deaths happen every year across the state because of inoperable air conditioning units”, Wildfire AZ executive director Kelly McGown said. “This partnership is an opportunity to change that”.

The DOE has now awarded over $1.6 billion in total under the Home Energy Rebates Program. So far 11 states have launched one or both subprograms: Arizona, California, Hawaii, Indiana, Maine, Michigan, New Mexico, New York, Rhode Island, Washington and Wisconsin.  

“In the coming weeks, Home Energy Rebates are expected to become available in several more states, helping more American families save energy and save money with energy-efficient home upgrades”, the DOE said.

The DOE estimates that the Home Energy Rebates Program can save $1 billion annually in energy costs. “Many Americans spend a large portion of their monthly income to heat, cool and power their homes, and in Arizona, 1 in 10 households are severely energy-burdened, with some of the lowest-income families in the nation spending upwards of 30 percent”, the DOE said. “Overall, by participating in the Home Energy Rebate programs, individual households could save up to $14,000 for energy-efficient home upgrades and hundreds more on monthly energy bills”.

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