Efficiency Rebates

Energy efficiency and electrification rebates

The Inflation Reduction Act, as signed by President Biden, includes $391 billion to support clean energy and address climate change through multiple pathways, including the Homeowners Manage Energy Savings (HOMES) and Homeowner Electrification & Appliance Rebates (HEAR) programs. These programs are designed to support households save money on energy bills, upgrade clean energy equipment and improve energy efficiency, and reduce indoor and outdoor air pollution.

Providing a lifeline for Arizona families facing excessive energy costs and promoting programs that make energy efficiency projects more affordable are core to Governor Hobbs’ energy priorities. As such, the Governor’s Office of Resiliency has been tasked with administering the energy efficiency rebate programs in the State. 

The HOMES program will provide performance-based rebates for whole-house energy saving retrofits. The amount of the rebate varies by the amount of energy savings.

The HEAR program will provide point-of-sale rebates for qualified electrification projects in low-income and historically underserved households. Example projects include the purchase and installation of electric heat pumps certified by the federal ENERGY STAR program.

The Office of Resiliency is expecting to take full advantage of nearly $150 million in rebates to benefit Arizona homes. We will be holding stakeholder workshops to seek input on program development soon, with the goal of beginning to issue rebates in 2024.

What do I do if I already completed an upgrade?

Rebate eligibility will be dependent upon income eligibility and verification, compliance with the requirements listed below, and several other factors to be determined. Per U.S. Department of Energy guidance, if you began energy upgrades or retrofits to your home on or after Aug. 16, 2022, you may be eligible for a reimbursement. However, completion of these from the State of Arizona does not guarantee a rebate. For more information, please review this fact sheet. 

If you are not income eligible, you may qualify for Federal tax credits. For more information, please visit the U.S. Department of Energy's Tax Credit for Consumers page.

☐ I received a final invoice for my home energy upgrade project on or after Aug. 16, 2022.

☐ A home assessment* was conducted on my home prior to the installation of equipment and/or materials.

☐ The home assessment included a summary of equipment and/or materials.

☐ The home assessment estimated the project’s energy savings to be at least 15 percent of my total home energy use.

☐ I received an estimate of the impact to my energy bill if I installed the equipment and/or materials.

☐ The contractor collected my written acknowledgement of the estimated impact to my energy bill.

☐ The contractor provided me with an invoice of the completed upgrade that includes the total cost of the project and all equipment and materials.

☐ My project included the installation of a heat pump, a heat pump water heater, or insulation.

☐ My project did not include electric generation technology (e.g., solar panel installation).

*- A home assessment is a third-party audit that provides information about the home’s characteristics (e.g., home type, year built, number of floors), existing equipment, efficiency levels, and opportunities for energy saving upgrades.