Ultimate Guide to the High-Efficiency Electric Home Rebate Act (HEEHRA)

Here at CastleWorks, we aim to provide unmatched customer service. To accomplish this, we have an obligation to stay up to date with all legislation that pertains to our products and services. An informed customer is a great customer, and our aim is to arm you with all the benefits afforded to you under legislation, including the High-Efficiency Electric Home Rebate Act.

Welcome to the ultimate guide for the High-Efficiency Electric Home Rebate Act (HEEHRA)! This comprehensive guide is designed to help you understand everything you need to know about HEEHRA, which provides financial incentives for low to moderate income households. This program provides opportunities for homeowners to upgrade their heating, ventilation, and air conditioning (HVAC) systems and water heaters to high-efficiency electric models. The HEERA program offers a wide range of financial and lifestyle benefits, including decreased energy bills, reduced carbon emissions, improved air quality, and job creation.

The High-Efficiency Electric Home Rebate Act (HEEHRA) provides point-of-sale consumer rebates to enable low and moderate income households across America to electrify their homes. HEEHRA is a voluntary program that can cover up to 100% of your electrification project costs.

This guide will provide you with all the information you need to:

• Determine if you qualify for the program
• What appliances and systems are covered
• Coverage prices
• How to apply
• HEEHRA’s effect on the economy and environment

So, let’s dive in and learn more about how HEEHRA can benefit you and your home!

What is HEEHRA, the High-Efficiency Electric Home Rebate Act? HEEHRA is recently passed legislation formerly known as (ZEHA) the Zero-Emission Homes Act.

The High-Efficiency Electric Home Rebate Act (HEEHRA) is a new ten-year rebate program available for low to moderate income households. This act was created under the United States Congress and Biden administration as a part of the 2022 Inflation Reduce Act (IRA). The 10-year period started in January of 2023 and ends in early 2033

HEEHRA is designed to be an incentive for homeowners to switch to electric home appliances and systems to reduce carbon emissions and inflation. The HEEHRA rebate is a voluntary program that covers 100 percent of electrification project costs (up to $14,000) for low-income households and 50 percent of costs (up to $14,000) for moderate-income households. HEERA will be available through point-of-sale, meaning that homeowners can receive the discount upon purchasing the qualifying electric products.

• What is HEEHRA
  • The HEEHRA rebate program became active in January of 2023 and will be available through point-of-sale, meaning that homeowners will be able to receive the discount upon purchasing the qualifying electric products.
• How do I apply for the HEEHRA rebate program?
  • HEEHRA is a point-of-sale rebate, which means that you do not have to apply for it separately. Instead, you can receive the rebate at the time of purchase when you buy a qualifying electric product from a participating vendor. The vendor will be responsible for processing the rebate for you.
• How much money can HEEHRA save me?
  • The amount of money you can save with the High-Efficiency Electric Home Rebate Act (HEEHRA) for air conditioners and furnaces varies depending on your location, income, and the type of system you choose to install. However, on average, households can save up to $500 a year on monthly utility bills by switching from an electric furnace and You can save up to 100% on upfront costs to switch your systems. Contact your local utility company or state energy office for more information on potential savings in your area.
• Will HEEHRA cover the full cost of installing new electric appliances and systems in my home?
  • A rebate received from HEEHRA will cover up to 100% of the costs required to switch to electric appliances and systems in homes that are low-income (under 80% of area median income) and 50% of costs in homes that are moderate-income (80% to 150% of Average median income), up to a maximum of $14,000. However, it is important to note that the rebate may not cover the full cost of installation for all eligible appliances and systems. It is recommended that you check the program guidelines and consult with a qualified contractor to determine the actual costs and rebate amounts for your specific project.
• What appliances and systems are covered under HEEHRA?
  • The HEEHRA rebate program covers the costs required to switch to electric appliances and systems in low to moderate-income households.
    This includes, but is not limited to:
    Electric Furnaces
    Heat Pumps
    Electric Water Heaters
    Other Energy-Efficient Home Appliances.
• Are there any limitations on the types of contractors or service providers that can be hired to install the eligible upgrades under HEEHRA?
  • HEEHRA does not impose any restrictions on the types of contractors or service providers that can be hired to install the eligible upgrades. However, it is recommended that homeowners choose contractors who are licensed, insured, and experienced in performing the specific upgrades covered under the program. CastleWorks is a participant in HEEHRA, with high-efficiency products from top brands that are eligible for rebates. Also, it may be beneficial to select a contractor familiar with the HEEHRA rebate program and can assist in completing the necessary paperwork and documentation to ensure a smooth application process.
• How can CastleWorks help me comply with HEEHRA rules and regulations?
  • CastleWorks can help you comply with HEEHRA rules by ensuring that the upgrades or installations you plan to make are eligible for the rebate program. They can also assist you in selecting high-efficiency appliances and systems that both meet the required energy efficiency standards and are a best fit for your home’s needs. Additionally, a contractor can help with the verification and inspection process, ensuring that the upgrades are professionally installed and meet the program’s requirements. It is important to choose a licensed and qualified contractor like CastleWorks who is familiar with the HEEHRA rebate program and can guide you through the process.
• Can I receive a HEEHRA rebate for upgrading my electric water heater?
  • Yes, you can receive the HEEHRA rebate for upgrading your electric water heater to a high-efficiency model. The program covers various appliances and systems, including electric water heaters, if they meet the eligibility criteria. The rebate amount may vary depending on the type and efficiency of the water heater you choose.
• Can I receive the HEEHRA rebate for upgrading multiple appliances and systems in my home?
  • Yes, you can receive the HEEHRA rebate for upgrading multiple appliances and systems in your home if they meet the program’s eligibility requirements. Keep in mind that the rebate is only available for eligible products purchased and installed after the program’s start date and before the funding is exhausted.
• Will HEEHRA cover the cost of labor for installing the new appliances and systems?
  • HEEHRA offers rebates for installing eligible electric appliances and systems in your home. While the rebate covers a portion of the cost of purchasing these appliances and systems, it typically does not cover the cost of labor for installation.
• How do I know if I qualify for the High-Efficiency Electric Home Rebate Act?
  • To determine if you qualify for the HEEHRA you must:
    Meet the eligibility criteria, which includes being a low to moderate income household.
    The specific income requirements may vary based on location, so it’s recommended to check with your local government or utility company to determine the exact income thresholds for your area.
    The HEEHRA rebate is only available for those who switch from an electric furnace and water heater to an energy-efficient heat pump system. The program is set to become active in 2023, so be sure to check with your local government or utility company for more information on how to apply for the rebate.
• What happens if I don’t qualify for a HEEHRA rebate?
  • If you do not qualify for a HEEHRA rebate, there may still be other rebate or incentive programs available to you. You can check with your local government or utility company to see if they offer any rebates or incentives for energy-efficient home upgrades. Additionally, CastleWorks can help you identify other rebates and programs to save you money.
• Are HEEHRA rebates available in California?
  • The HEEHRA rebate program is a federal program and is therefore available to eligible participants in California. If you do not qualify for rebates, contact CastleWorks for a consultation today to discuss energy-efficient upgrade options for your home. This can yield cost savings in a reduction in your monthly utility bills.
• Can I combine the HEEHRA rebate with other energy efficiency rebates and incentives?
  • It depends on the specific rebates and incentives. Some may allow for stacking or combining with the HEEHRA rebate program, while others may not. It is best to check with the specific program or incentive to see if they allow for combining with the HEEHRA rebate.
• Can I combine a HEEHRA rebate with financing options to cover the cost of upgrades that exceed the rebate amount?
  Can renters qualify for a HEEHRA rebate or is it only available to homeowners?
  • Yes, you can combine a HEEHRA rebate with financing options to cover the cost of upgrades that exceed the rebate amount. In fact, some financing options specifically target energy-efficient upgrades and may offer favorable terms and interest rates.
• Two major benefits we see on the environment from HEEHRA
  • HEEHRA will have a positive impact on carbon emissions. HVAC systems and water heaters contribute to nearly half of residential building carbon emissions. Replacing these systems with electric heat pump systems could help to decrease carbon emissions by 46% to 54%, according to the U.S. Department of Energy and the Natural Resources Defense Council. By switching from natural gas to electric water heaters, you can reduce carbon emissions by 50% to 70%.
    Another benefit is improved air quality for everyone. Outdated appliances coupled with limited living spaces can lead to poor indoor and outdoor air quality. A goal of HEERA is to improve air quality for these households by encouraging the use of electric appliances like furnaces and stoves.
• How will HEERA affect the overall energy consumption in the United States?
  • HEERA is designed to promote the use of high-efficiency electric appliances and systems in homes, particularly those occupied by low to moderate-income households. By incentivizing the adoption of energy-efficient heating, cooling, and water heating systems, the program aims to reduce energy consumption and lower greenhouse gas emissions.
    According to the U.S. Department of Energy, HVAC systems and water heaters account for a significant portion of residential building carbon emissions. By encouraging households to upgrade their appliances and systems to more energy-efficient alternatives, HEEHRA can greatly reduce carbon emissions in the long term.
• Will HEEHRA have a positive impact on the economy?
  • The High-Efficiency Electric Home Rebate Act promotes Job Growth and Economic Prosperity. The Bluegreen Alliance estimates that HEEHRA will create over 170,000 jobs in the United States, with the Inflation Reduction Act aiding in creating over 400,000 jobs over the next ten years. This will help to promote economic growth and reduce inflation in the U.S. economy.
• What is the process for verification and inspection of the upgrades to qualify for HEEHRA?

In conclusion, the High-Efficiency Electric Home Rebate Act (HEEHRA) provides homeowners and low-income families an opportunity to upgrade to more energy-efficient appliances and systems at a reduced cost. CastleWorks has helped many families maximize their HEERA savings, so give us a call to make the most of this program.

The financial benefits and long-term savings that come with these upgrades are substantial, and the positive impact on the environment cannot be overstated. As with any government program, there are specific requirements and guidelines that must be followed to qualify for the rebate. However, with the help of certified contractors like CastleWorks, the process can be simplified and made more accessible. We hope this ultimate guide has provided you with valuable insights into the HEEHRA program and the steps you can take to take advantage of it.