HEEHRA Rebates

What is the High-Efficiency Electric Home Rebate Act (HEEHRA)?

HEEHRA (High-Efficiency Electric Home Rebate Act) is a new ten year rebate program available for low to moderate income households that was created under the United States Congress and Biden administration as a part of the 2022 Inflation Reduce Act (IRA). This rebate program is designed as an incentive for homeowners to switch to electric home appliances and systems in an effort to reduce carbon emissions and inflation. The HEEHRA rebate will cover 100% of the costs required to switch to electric appliances and systems in homes that are low-income and 50% of costs in homes that are moderate-income for up to $14,000. 

The HEEHRA rebate will become active in 2023 and will be available through point-of-sale, meaning that you’ll be able to receive the discount upon purchasing the qualifying electric products.

Learn More About the HEEHRA rebate:

Benefits and Advantages of the New HEEHRA Rebate Program

Available Rebates Through the HEEHRA Program

Who Qualifies For the HEEHRA Rebate Program? 

How Can I Prepare For the HEEHRA Rebate Program?

Benefits and Advantages of the New HEEHRA Rebate Program

There are quite a few benefits and advantages to the new HEEHRA Rebate Program being offered to low to moderate income households. From saving money to helping reduce your environmental footprint, this rebate program can benefit your home, wallet, and environment in the following ways:

  • Decreased Energy Bills:  By switching from an electric furnace and water heater to an energy-efficient heat pump system that is covered under HEEHRA, households can save on average $500 a year on monthly utility bills. Not only are you saving money with the rebate, but you can also save money on your monthly energy bills as well, helping you save money all around! 
  • Upgrades for Low to Moderate Income Households:  Most low-income to moderate-income households are unfortunately prone to outdated, energy-inefficient HVAC and water heating systems. This causes higher monthly utility bills and frequent costly repairs and replacements that can be hard for these income level households to afford. Thanks to the new HEEHRA rebate program, these households will now be able to afford installing new, higher energy efficient appliances that will allow them to have more reliable systems as well as save a significant amount of money on energy bills and repairs. 
  • Promotes Jobs and Economic Growth:  According to the Bluegreen Alliance, the new HEEHRA rebate act will help to create over 170,000 jobs in the United States, as well as the Inflation Reduction Act overall aiding in over 400,000 jobs over the next ten years. This contribution should help economic growth and a reduction of inflation in the U.S. economy. 
  • Reduced Carbon Emissions:  The U.S. Department of Energy states that HVAC systems and water heaters consist of 46% of residential building carbon emissions. According to the Natural Resources Defense Council, replacing these natural gas heaters with electric heat pump systems could help to decrease carbon emissions anywhere from 46% to 54%! Additionally, switching from natural gas to electric water heaters could help to reduce carbon emissions by 50% to 70%! 
  • Air Quality Improvements:  Electric appliances such as furnaces and gas stoves can help improve indoor and outdoor air quality for low-income communities. These households typically have outdated appliances in their homes coupled with smaller square footage in comparison to higher income households. Utilizing the HEEHRA rebate program can help contribute to an improvement in air quality for these lower income households.

Available Rebates Through the HEEHRA Program

Through the new HEEHRA rebate program, there are many qualifying electric systems available for purchase. The maximum rebate savings amount available will vary for each system as listed below:

HEEHRA Rebate Amounts Virginia American Mechanical

Who Qualifies for the HEEHRA Rebate Program? 

To figure out if you qualify for the HEEHRA rebate program, check with the U.S. Department of Housing and Urban Development (HUD) to see what the income limits are in your county. HUD provides housing information as well as improves lower-income communities via housing laws that are fair and equal for all. From HUD, you will be able to calculate your estimated income. As a rule of thumb, if your income is 150% or less than the median income of your area, you likely qualify for the HEEHRA rebate. If you fall into the following guideline groups below, you should qualify for the HEEHRA rebate program:

  • Low-Income Households:  Less than 80% of your area’s median family income.
  • Moderate-Income Households:  80% to 150% of your area’s median income families.
  • Multifamily Buildings:  Above requirements apply to multifamily buildings with 50% or more LMI residents.

How Can I Prepare for the HEEHRA Rebate Program?

Now is the time to prepare for the HEEHRA Rebate Program as it is not yet live, by following these helpful tips:

  • Enlist a local energy auditor. Hiring an energy auditor to look at your home can help you determine ways you can save money by making certain upgrades in your home. Your energy auditor will be able to provide you with the best recommendations and upgrades for your home. 
  • Choose which systems you want to upgrade in your home. Once the rebate is available, it’s best to anticipate that there will be a lot of other homeowners wanting to utilize the program as well. With that being said, get a list together of the products that you want to purchase to upgrade your home so that you can avoid waiting on any backorders (Think heat pumps, for example).
  • Call American Mechanical for more information and to schedule your install! Just as you should anticipate low inventory for the appliances, installation services will likely get fully booked as well! Call the experts at American Mechanical to discuss availability and even receive a free price quote so you can be prepared and ready to install your new energy efficient appliances!
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