The Inflation Reduction Act created two major rebate programs for residential buildings:
HOMES, also known as Home Efficiency Rebates, and
HEEHRA, also known as Home Electrification Rebates.
The map above summarizes how these programs vary by state, including maximum incentive amounts,
multifamily availability, program status, and whether energy modeling can help qualify for larger rebates.
What Are HOMES Rebates?
HOMES rebates are performance-based incentives. Instead of paying only for specific equipment,
they reward projects that reduce whole-building energy use.
In many states, larger rebates are tied to modeled or measured energy savings, often at the
20% or 35% savings level. This is where energy modeling can become important.
A good model can help estimate savings before construction and identify the best path to the highest rebate.
What Are HEEHRA Rebates?
HEEHRA rebates are focused on electrification upgrades, such as heat pumps, heat pump water heaters,
electric cooking equipment, electrical panels, wiring, insulation, and air sealing.
These rebates are generally income-based and are often simpler than HOMES rebates because they are tied
to specific equipment rather than whole-building energy performance.
Why Rebate Amounts Vary by State
Although HOMES and HEEHRA were created at the federal level, each state is responsible for launching
and managing its own program. That means eligibility rules, launch dates, maximum rebate amounts,
multifamily requirements, and application processes can vary significantly.
Two similar projects in different states may qualify for very different rebate amounts. Some states are
fully live, some are partially launched, and others are still awaiting final program rollout.
Why Energy Modeling Helps
Energy modeling can help determine whether a project is likely to meet the savings thresholds required
for higher HOMES rebates. It can also help compare design options before money is spent on construction
or equipment.
Modeling is especially helpful for multifamily projects, larger residential buildings, and projects
combining envelope improvements, HVAC upgrades, heat pumps, controls, and other energy conservation measures.
Estimate whether a project can reach 20% or 35% energy savings
Compare multiple retrofit options before construction
Identify measures that are likely to produce the strongest savings
Support rebate applications where modeled savings are allowed or required
Help avoid leaving available rebate money on the table
Common Mistakes with HOMES and HEEHRA Rebates
Assuming every state offers the same rebate amounts
Assuming a project qualifies before checking income, building type, and program status
Missing the higher rebate tier because projected savings were not evaluated early
Relying only on equipment rebates when performance rebates may also be available
Not coordinating rebates with other incentives, tax credits, or utility programs
Need Help Estimating Your Rebate?
Programs are still evolving, and final eligibility depends on the state, project type, income category,
scope of work, and energy savings pathway.
If you have a project in mind, we can review the details and help estimate your potential rebate.