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!
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!