Arizona Opens First Phase of IRA Rebate Program

The state of Arizona has begun the first part of its federally funded Home Energy Rebates program. The state has been allocated more than $153 million to help homeowners pay for high-efficiency HVAC equipment, such as heat pumps, and other energy-saving home improvements.

Photo courtesy of Carrier

PHOENIX — Arizona has joined the growing roster of states that have launched a Home Energy Rebates program, supported by the federal Inflation Reduction Act (IRA).

Arizona’s version of the IRA’s Home Electrification and Appliance Rebates (HEAR) program is intended to help low- and middle-income households save on energy-efficiency improvements to their homes, a press release from the U.S. Department of Energy said.

Arizona is launching its HEAR program, one of two programs that make up the Home Energy Rebate programs, in two phases.

Initially, Arizona’s Efficiency Arizona program, in partnership with community action agencies, will focus on providing heat pumps through an a/c replacement program that addresses heat-relief emergencies and/or financial hardships, the DOE press release said. At this stage, the owners of single-family homes who have low or moderate incomes and are facing extreme heat will be eligible for rebates of up to $8,000 each on new heat pumps. A low-income household is defined as one with an income of less than 80% of the area’s median income, while a middle-income household is defined as one with between 80% and 150% of the area median.

“Arizona is no stranger to the heat, yet we have always risen to the challenge, protected our neighbors, and built a sustainable and thriving state,” said Gov. Katie Hobbs in a press release from her office. “We are taking advantage of a once-in-a-lifetime opportunity to lower costs and help Arizonans stay safe in the extreme heat. I’ll keep working to ensure we have the resources we need to build a resilient and sustainable state.”

Later this fall, Arizona plans to roll out the remainder of its HEAR program, which will provide low- and middle-income homeowners and renters with up to $14,000 in rebates to upgrade equipment and appliances. It will cover up to 100% of the costs for low-income families and up to 50% of the costs for moderate-income families.

A second Home Energy Rebates program in Arizona, Home Efficiency Rebates (HER), will launch later. Under the HER program, households can save money on measures that reduce whole-home energy consumption. The state's allocation for both of the Home Efficiency Rebates programs totals just over $153 million.

For more information on Arizona’s programs, visit its Home Energy Rebates website.