Federal Rebates for Home Electrification

The Inflation Reduction Act (IRA) has introduced unprecedented federal rebates for homeowners looking to upgrade to energy-efficient electric systems. Whether you’re considering a heat pump HVAC system, an upgraded electrical panel, or a heat pump water heater, these rebates can significantly reduce the cost of your home improvements.

At Fuse Los Angeles, we specialize in helping homeowners transition to clean energy solutions while taking full advantage of available rebates and tax credits. Below, we break down the key incentives currently available.

Major Rebates for Home Upgrades

The IRA has allocated $8.8 billion to fund Home Energy Rebates programs through the Department of Energy (DOE). These programs aim to lower the cost of home electrification projects, making it easier for homeowners to switch to more efficient, fossil-fuel-free appliances.

Check your eligibility and rebate availability in California using the DOE Home Energy Rebates Progress Tracker.

1. HEAR / HEEHRA – Home Electrification and Appliance Rebates

If your household income is below 150% of the Area Median Income (AMI), you may qualify for up to $14,000 in rebates through the Home Electrification and Appliances Rebates (HEAR) program. In California, this program is administered as the High-Efficiency Electric Home Rebate Act (HEEHRA).

Eligible rebates include:

Heat Pumps: Up to $8,000 for a high-efficiency HVAC heat pump system

Electrical Panel Upgrades: Up to $4,000 for necessary panel upgrades

Heat Pump Water Heaters: Up to $1,750 for replacing a gas water heater

Additional Incentives: Available for induction stoves, insulation, and ventilation upgrades

Find out if you qualify: Look up your Area Median Income (AMI) here.

2. HER / HOMES – Home Energy Efficiency Rebates

The Home Efficiency Rebates (HER) program, known as Homeowners Managing Energy Savings (HOMES) in California, provides rebates of up to $7,000 for energy-saving home upgrades.

How much can you get?

• $2,000 to $4,000 for homeowners who reduce energy usage by 20–35%

• Up to $7,000 for homeowners earning below 80% of AMI who achieve major energy savings

These rebates reward whole-home retrofits that improve energy efficiency, helping homeowners lower utility bills while modernizing their HVAC and electrical systems.

How to Combine Rebates & Tax Credits for Maximum Savings

The IRA rebates can be stacked with the 25C Energy Efficient Home Improvement Tax Credit, allowing you to cut costs even further. Here’s how:

Rebates apply first – DOE rebates provide upfront discounts on qualifying appliances and improvements.

Tax credits apply to the remaining cost – After the rebate, you can claim a 30% tax credit on the remaining amount under the 25C tax credit program.

Example Savings Calculation:

Let’s say you install a $5,000 heat pump HVAC system and qualify for a $2,000 rebate. Your tax credit would then be calculated based on the remaining $3,000 cost:

$2,000 rebate applied upfront

30% tax credit on the remaining $3,000 = $900

Final cost after incentives = $2,100 instead of $5,000!

Important Limitations to Consider

HEEHRA and HOMES rebates cannot be combined for the same project

Total rebates & tax credits cannot exceed 100% of the project cost

State-administered programs may have different eligibility requirements

Need help claiming your tax credits? Learn more about how to file for federal home energy tax credits.

Why Start Planning Now?

While some rebate programs are still rolling out, it’s a good idea to start planning your electrification upgrades now. The current administration supports these programs, but funding and eligibility could change in the future.

At Fuse Los Angeles, we stay updated on California rebate programs and can help you:

Determine which rebates you qualify for

Plan your home upgrades for maximum savings

Install high-efficiency heat pumps, water heaters, and electrical upgrades

Get Started on Your Energy-Efficient Home Upgrades

If you’re considering switching to heat pumps, energy-efficient water heaters, or other electrification upgrades, now is the time to act. Book a consultation with us today to maximize your incentives and make the transition to a cleaner, more efficient home.

Schedule Your Free Home Assessment

Explore Our Heat Pump Services

Final Thoughts: The Future of Home Energy is Electric

With historic rebates and tax incentives, switching to all-electric home systems has never been more affordable. By upgrading to energy-efficient HVAC systems, water heaters, and electrical panels, homeowners can:

Save thousands in upfront costs

Lower monthly utility bills

Improve indoor air quality & eliminate gas pollution

Reduce carbon emissions & support clean energy

Let Fuse Los Angeles help you navigate the incentives and transition to a more efficient home. Book your consultation today!

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korman pak

Mike and Dima were fantastic to work with. They helped us replace two AC units at our duplex in Los Angeles and made the whole process smooth from start to finish. They were very informative, took the time to explain everything clearly, and offered competitive pricing. Really appreciate their professionalism and would definitely recommend them to anyone needing HVAC work.

Alyssa Zhang

They had great communication, a fair estimate, and did quality work. If we ever move and need to replace another heat pump, we would definitely go with them again.

Rochelle Potts

Quick Effecient Thorough and very Patient

Egan Gauntt

I am very pleased with my recent experience with Fuse. They were quick to assess my broken heater and repaired it as soon as they got the parts. I would highly recommend and will be using them for future hvac issues!

Aashish Suresh

Great Experience, Boris worked hard and was greta.

Mauro Peri Casarino

I had an excellent experience working with Dima for our AC repair. From the moment he arrived, he was professional, punctual, and extremely knowledgeable. He quickly diagnosed the issue, clearly explained what needed to be done, and completed the repair efficiently without any unnecessary delays. What truly stood out was his honesty and attention to detail. He took the time to make sure everything was working perfectly before leaving and answered all of our questions with patience and clarity. It’s rare to find someone who combines technical expertise with such a respectful and trustworthy approach. If you are looking for someone reliable, skilled, and genuinely committed to doing quality work, I highly recommend Dima. We will absolutely call him again for any future HVAC needs.

Jeffrey Hellrung

Top-line: they fixed what I called them about (rusty drip pan) for a fair price; and the tech that did the work, Bruce, was friendly and professional. Would call again. I was working with Michael to handle logistics and questions. Michael was responsive. He additionally offered to fix several additional things his tech noticed on the diagnosis visit, which all sounded reasonable, and even threw in replacing the capacitors for free with everything else (thanks!). Why 4 instead of 5 stars? Two things. The estimates and billing were wrong on the first iterations -- the first set of "good" / "better" / "best" estimates I got didn't make any sense (confusingly, "good" was better than "better", and "better" was the same as "best"). Apparently a CRM glitch and Michael fixed it promptly after I pointed it out. And the first bill included the diagnosis fee, which it wasn't supposed to, and Michael removed it, again after I pointed it out. The other thing was, I asked up front for before/after photos, and I got *almost all* of them (...after asking...), but didn't get photos for the evaporator coil cleaning. I'm kind of assuming the tech just missed those, or they got lost at some point, I'm not sure. All in all, not the biggest deals, I get it, Michael and his team are busy, but I feel like I have to drop a star for these hiccups.

Mary Claire

Terrific company . Very professional. Very fair prices. . They are on time , polite and very efficient . Clean good work. . Definitely happy with the hire

Perry Shields

Furnace wasn’t working. Called 7:30am, tech was dispatched at between 10:00-12:00, showed up at 11:00, gave me three options (one was to replace the entire furnace). I chose the middle option, which was to replace faulty parts. Bruce, the tech, did a great job, communicated thoroughly, no pressure to replace the whole unit. Was very thankful for the same-day service. Paid by Zelle. Would use this service again.

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Korman P.

D L.

Very good experience with Michael, Boris and Dmitry. Service call on existing system turned into a full system replacement from our old gas furnace. They had everything done in two days. Very friendly and hardworking team. Glad we went with them!

T L.

My experience with Fuse Service has been nothing short of excellent! I chose Fuse Service because of the Company's positive reviews across several platforms, particularly on Yelp. I had an older furnace that stopped working, and I knew it was a relatively simple fix. However, I anticipated potential issues with upgrading safety features using replaceable parts due to the furnace's age. I spoke with Michael, the owner of Fuse Service, by phone and explained my situation. He arranged for a technician to come out right away, and throughout my interactions with the Company, the communication has been outstanding--worthy of five stars in today's world! The technician arrived on time and, according to my tenant, was extremely professional and knowledgeable. Once the technician determined the problem, Michael called me with an update and sent two very detailed and clearly worded estimates. I never felt pressured to replace the furnace, even though I knew it was only a matter of time before I would need to. Having done my research, I had an idea of how much a new furnace would cost, including installation. I was very relieved to find that Fuse Services offered a very fair price for a new unit, which ultimately made the most sense for me. My next concern was ensuring my tenants wouldn't be without heat for a few days, so I wanted the process to move forward quickly. Michael was able to start the installation that same day, and they completed the entire job by the end of the day. What impressed me even more was that the technician who installed the unit was not only very knowledgeable, but he also left no mess behind. I see why Fuse Services has such a high rating. I highly recommend this Company!!

Kevin O.

GOOD CUSTOMER SERVICE. Easy to communicate with. Michael and Alex got back to me with estimates immediately. Whether it was a phone call or text, they would respond anytime of day. They were super thorough in their in-person visit and caught a few things that other companies did not notice. For that, I was sure these guys knew what they were doing. They installed a mini split 18k btu in my home and were done in a day. No harm no foul. They offer peace of mind with their warranties and as of now everything works great.

Jeffrey H.

Top-line: they fixed what I called them about (rusty drip pan) for a fair price; and the tech that did the work, Bruce, was friendly and professional. Would call again. I was working with Michael to handle logistics and questions. Michael was responsive. He additionally offered to fix several additional things his tech noticed on the diagnosis visit, which all sounded reasonable, and even threw in replacing the capacitors for free with everything else (thanks!). Why "Good" and not "Great"? Two things. The estimates and billing were wrong on the first iterations -- the first set of "good" / "better" / "best" estimates I got didn't make any sense (confusingly, "good" was better than "better", and "better" was the same as "best"). Apparently a CRM glitch and Michael fixed it promptly after I pointed it out. And the first bill included the diagnosis fee, which it wasn't supposed to, and Michael removed it, again after I pointed it out. The other thing was, I asked up front for before/after photos, and I got *almost all* of them (...after asking...), but didn't get photos for the evaporator coil cleaning. I'm kind of assuming the tech just missed those, or they got lost at some point, I'm not sure. All in all, not the biggest deals, I get it, Michael and his team are busy, but I feel like I have to drop a star for these hiccups.

Nice 1.

The manager, Michael, worked with me to ensure the lines of communication between me, his tech, and my tenant were open and clear. We had communications issues with the first technician and Michael quickly reassigned another tech. The bid was very affordable and a third of the other bids I received. The team was at the property to commence work in 24 hours.

Quinn W.

Fuse quickly responded to my quote request. Boris came on the same day. He fixed my gas furnace and replaced an old thermostat for a very reasonable price.

Wynton

Hired Fuse HVAC to make a repair to my wall heater, and it was a wonderful experience. They were very timely, very fair on the pricing, and did great work. I had three other companies out and no one could help me, but Fuse was able to get it done. I will happily hire them again in the future.

Abby W.

Excellent experience with Fuse. They responded quickly, diagnosed our furnace issue, delivered a report and quote immediately, took helpful photos. We are so grateful! Hope to work with them again soon

Daniel S.

The company was quick to respond. Sent a technician within a couple of hours. Boris was very polite. Gave an estimate that I wasn't ready to act on. Will explore more diagnosis. Good to get a few estmates. Thanks Fuse HVAC

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