Appointment Lookup
213-596-2538
Discover if using a ceiling fan with an air conditioner is a good idea. Get expert advice from Sears Home Services.
New Home Energy Rebates: 2026 Update
Calling all homeowners with gas appliances! Get ready to save some serious cash. Thanks to the Inflation Reduction Act of 2022, residents in certain states can now reap the benefits of home energy rebates. Not only will these rebates help lighten the load on your wallet, but they'll also help you play your part in creating a greener future. Sounds like a win-win, right?
KEY TAKEAWAYS
- The Inflation Reduction Act (IRA) provides unprecedented home energy rebates to help low- and moderate-income families convert gas appliances and furnaces to cleaner electric versions in some states.
- The 2022 IRA provides up to $14,000 in rebates for qualified “electrification” projects.
- See if your state participates in these impactful energy rebates.
On August 16, 2022 President Joe Biden signed the Inflation Reduction Act (IRA) that provides unprecedented home energy rebates to help low- and moderate-income families convert gas appliances and furnaces to cleaner electric versions.
Using clean electricity instead of burning fossil fuels will reduce carbon emissions by a projected 200 million metric tons by 2045.
The U.S. Department of Energy sets guidelines for state energy offices to administer the rebates. The state entities are responsible for setting up and administering the programs that make the rebates accessible to homeowners.
In 2026, these states now have some or all of the home energy rebates available.
- Arizona
- California
- Colorado
- District of Columbia
- Georgia
- Indiana
- Maine
- Michigan
- New Mexico
- New York
- North Carolina
- Rhode Island
- Wisconsin
Check with your state’s website for more information about HEEHRA rebates now available if you live in these states.
Details About Home Energy Rebates in the 2022 Inflation Reduction Act
The 2022 IRA provides up to $14,000 in rebates for qualified “electrification” projects. These rebates are only available to households earning less than 150 percent of their area’s annual median income.
- Low-income households who earn less than 80 percent of annual median income can get rebates for 100 percent of electrification projects up to $14,000.
- Median-income households who earn between 80 – 150 percent of annual median income can get rebates for 50 percent of electrification projects up to $14,000.
Components of electrification projects that qualify for rebates include:
- Replacing a gas furnace with an electric heat pump--up to $8,000.
- Replacing a gas water heater with a heat pump water heater—up to $1,750.
- Replacing a gas dryer with a hybrid heat pump clothes—up to $840.
- Replacing a gas range or cooktop with an electric version—up to $840.
- Upgrades to windows, doors and home insulation that reduce home energy use—up to $1,600.
- Up to $4,000 for updating the electrical breaker box to accommodate the new electrical appliances.
- Up to $2,500 for home wiring revisions to install the new electrical appliances.
More Information About IRA Rebates and Appliances they Cover
How Can I Find My Area’s Median Income?
Use the Fannie Mae Area Median Income Lookup Tool to get an idea of the median income in your area. For example, the median income of households in the St. Louis area is $96,800.
If you live in that area, you would qualify for 100 percent rebates if your household earns less than $77,440 (80 % of $96,800 median income). Households earning between $77,440 and $145,200 would qualify for the 50 percent rebate of qualified IRA electrification projects.
These are general guidelines and examples. Specific guidelines for IRA rebates are still being worked out by individual state governments. Check back for more information as new details about IRA rebates emerge.
If you live in a state where rebates are currently offered, check with your state's energy office or agency administering the program to see if you qualify for the rebates based on your income.
What Is a Heat Pump?
A heat pump HVAC system works like an air conditioner in the summer and reverses refrigerant flow in winter to heat your home.
Heating Mode
When the HVAC compressor compresses refrigerant, the refrigerant gets hot. The system circulates the hot refrigerant through the evaporator fins inside your home. The blower fan circulates inside air through the evaporator to heat the air inside your home.
When the hot refrigerant can’t provide the heat needed to keep your home comfortable, an electric heating element turns on to supplement refrigerant heating.
Cooling Mode
The compressor compresses refrigerant and sends the hot refrigerant through the outside condenser unit to cool down the refrigerant. The cooled down refrigerant travels to the inside unit in your home. The refrigerant passes through an orifice to make a fine mist that enters the evaporator. The refrigerant mist absorbs heat from the evaporator and cools the air circulated through the evaporator by the blower fan.
How Does a Heat Pump Water Heater Work?
A heat pump water heater uses hot refrigerant gas as the primary heat source for heating water inside the water heater tank. A compressor is positioned at the top of the water heater runs to compress and heat the refrigerant. The refrigerant flows down through heat exchanger tubes inside the water heater tank and heats the water. The refrigerant then flows through an evaporator heat exchanger on top of the water heater to cool the refrigerant down. Next, the refrigerant flows back to the compressor and the heating cycle repeats.
When hot water demand exceeds the refrigerant systems ability to heat water, standard electric water heating elements turn on to heat water.
How does a heat pump dryer work?
A heat pump dryer uses hot refrigerant gas to heat the clothes and cooler refrigerant to dehumidify the air that flows through the clothes during the drying cycle. Many heat pump dryers are ventless. Here’s how the dryer works.
- The compressor compresses refrigerant which heats up the fluid.
- The refrigerant flows from the compressor through the condenser heat exchanger.
- A fan blows air through the condenser heat exchanger and into the dryer drum to heat the clothes and cool the refrigerant. A small electric heating element also helps heat the air as needed.
- Warm moist air flows out of the drum and through the evaporator.
- Refrigerant in the evaporator dehumidifies the exhaust air. Moisture removed from the clothes drips down into a drain sump. When the drain sump gets full, a drain pump sends the water to the washer drain.
- Refrigerant returns to the compressor and air goes back through the condenser heat exchanger to repeat the drying cycle.
The drying cycle in a heat pump dryer takes longer but uses much less energy than a conventional dryer. Also, the clothes don’t get as hot in a heat pump dryer because the dehumidifying process removes moisture from the clothes instead of just hot air flowing through the clothes and out an exhaust vent.
Because a heat pump dryer recycles exhaust air, getting a ventless heat pump dryer will eliminate the hassle of cleaning a dryer vent and will save you money on energy bills.
Understanding the details of these home electrification energy rebates will help you decide whether these changes are right for your home.
If you're eligible for these rebates, you can significantly upgrade your home, save money on energy bills and help the environment.
Frequently Asked Questions
What are HEEHRA rebates and how do they help homeowners in 2026?
HEEHRA (High-Efficiency Electric Home Rebate Act) rebates are part of the Inflation Reduction Act of 2022 and are now actively available in more states in 2026. These rebates help eligible low- and moderate-income households offset the cost of replacing gas-powered appliances—such as furnaces, water heaters, dryers, and ranges—with high-efficiency electric alternatives like heat pumps. Qualified homeowners can receive up to $14,000 total toward electrification upgrades, significantly reducing upfront installation costs.
Who qualifies for HEEHRA rebates?
Residents in participating states may qualify for these rebates. Eligibility is based on household income compared to the Area Median Income (AMI) where you live:
Low-income households earning less than 80% of AMI may qualify for 100% of eligible project costs, up to $14,000.
Moderate-income households earning 80%–150% of AMI may qualify for 50% of eligible project costs, up to the same cap.
Income limits and exact qualifications are administered by each state, so homeowners should confirm details with their state energy office.
Which home upgrades qualify for HEEHRA rebates?
HEEHRA rebates apply to a wide range of electrification projects, including:
Electric heat pump HVAC systems (up to $8,000),
Heat pump water heaters (up to $1,750),
Heat pump clothes dryers (up to $840),
Electric ranges or cooktops (up to $840),
Electrical panel upgrades (up to $4,000),
Home wiring upgrades (up to $2,500),
and Energy-saving insulation, windows, and doors (up to $1,600).
These upgrades not only lower energy bills but also improve home comfort and reduce carbon emissions.
How do I apply for HEEHRA rebates in my state?
HEEHRA rebates are administered at the state level, not federally. Homeowners should start by visiting their state energy office or official state rebate website to confirm availability, income eligibility, and application steps. In many cases, rebates are applied at the point of sale through approved contractors. Working with an experienced provider can help ensure installations meet program requirements and maximize eligible savings.
Schedule your HVAC maintenance now!
HVAC checkups from Sears Home Services help keep your heating and cooling system running at its best. Prevent costly repairs and can make your HVAC system more energy efficient with routine maintenance.
Loading scheduler options...
Maintain HVAC Resources
Learn how to weatherize your home for summer and save on energy bills. Get expert tips and tricks from Sears Home Services.
Learn how to save energy and reduce costs with these easy air conditioner efficiency tips. Keep your home cool and comfortable while lowering your utility bills.
Follow our step-by-step guide on how to prepare your house for vacation and enjoy a worry-free trip.
Glossary Terms
The 608 Certification, mandated by the Environmental Protection Agency (EPA), is required for HVAC technicians to legally handle refrigerants. It ensures technicians understand refrigerant types, environmental impact, and proper handling techniques.
A compressor is a mechanical device that increases the pressure of a gas by reducing its volume, essential in various systems including refrigerators, air conditioners, and HVAC units for cooling and refrigeration processes.
A condenser is a component of HVAC and refrigeration systems, responsible for releasing absorbed heat from the refrigerant into the outside air or a water line, thus facilitating the cooling process.
A capacitor in an AC unit is an electrical component that stores and releases electrical energy to help start the motor and stabilize the voltage during operation.
Common Repair HVAC Symptoms
When your Payne central air conditioner won’t turn on or isn’t cooling, check for power problems, a failed capacitor, or a clogged condensate drain. This guide covers quick, safe troubleshooting steps and explains when to call Sears Home Services for expert central AC repair.
When your ICP central air conditioner won’t turn on or isn’t cooling, check for power problems, a failed capacitor, or a clogged condensate drain. This guide covers quick, safe troubleshooting steps and explains when to call Sears Home Services for expert central AC repair.
When your Heil central air conditioner won’t turn on or isn’t cooling, check for power problems, a failed capacitor, or a clogged condensate drain. This guide covers quick, safe troubleshooting steps and explains when to call Sears Home Services for expert central AC repair.
When your Carrier central air conditioner won’t turn on or isn’t cooling, check for power problems, a failed capacitor, or a clogged condensate drain. This guide covers quick, safe troubleshooting steps and explains when to call Sears Home Services for expert central AC repair.
When your Comfortmaker central air conditioner won’t turn on or isn’t cooling, check for power problems, a failed capacitor, or a clogged condensate drain. This guide covers quick, safe troubleshooting steps and explains when to call Sears Home Services for expert central AC repair.
When your Ruud central air conditioner won’t turn on or isn’t cooling, check for power problems, a failed capacitor, or a clogged condensate drain. This guide covers quick, safe troubleshooting steps and explains when to call Sears Home Services for expert central AC repair.