Arizona Launches Rebate Program for HVAC Efficiency

PHOENIX, Ariz. — Arizona has launched its Home Electrification and Appliance Rebates (HEAR) program, which is designed to help low- and middle-income households save on energy-efficient HVAC equipment and other appliances.

HEAR is one of two Inflation Reduction Act (IRA) rebate programs intended to lower energy costs and increase energy efficiency in American homes by making it cheaper to install measures such as heat pumps, electrical panels, new windows, and insulation. The energy-saving measures are expected to save American households up to $1 billion annually in energy costs as well as support an estimated 50,000 U.S. jobs in residential construction, manufacturing, and other sectors, according to a press release from the U.S. Department of Energy (DOE).

The rebate programs total $8.8 billion and are available to states, territories, and American Indian tribes. The investments also advance the President Joe Biden’s Justice40 Initiative, which sets a goal that 40% of the overall benefits of certain federal climate, clean energy, affordable and sustainable housing, and other investments flow to disadvantaged communities that have been marginalized by underinvestment and overburdened by pollution.

“Arizonans know more than most the urgency of deploying energy-efficient measures, like insulation and upgraded HVAC systems, so households across the state can slash their utility bills without putting people in danger of heat-related health impacts,” said U.S. Secretary of Energy Jennifer M. Granholm. “Arizona is one of the states leading the nation in building up their local workforce and keeping money in the pockets of their residents.”

Arizona is launching HEAR, which the state is calling Efficiency Arizona, in two phases.

Initially, Efficiency Arizona, in partnership with regional community action agencies, will focus on providing heat pumps under an air-conditioning replacement program that addresses heat-relief emergencies and helps people with financial difficulties. At this stage, low- and moderate-income owners of single-family homes facing extreme heat will be eligible for rebates on new heat pumps. This fall, Arizona plans to roll out the remainder of its HEAR program, which will provide lower- and middle-income homeowners and renters with up to $14,000 in rebates to upgrade equipment and appliances. They will be able to save up to:

• $8,000 for an Energy Star-certified electric heat pump for space heating and cooling.

• $4,000 for an electrical panel.

• $2,500 for electrical wiring.

• $1,750 for an Energy Star-certified electric heat-pump water heater.

• $1,600 for insulation, air-sealing, and mechanical ventilation products.

• $840 for an Energy Star-certified electric heat pump clothes dryer and/or an electric stove, cooktop, range, or oven.

There is a second IRA rebate program that Arizona will launch later, the Home Efficiency Rebates (HER) program, which will help households save money on measures that reduce whole-home energy consumption.