Next round of federal rebates for home energy upgrades are open. Here's how to find out if you’re eligible

Single-family homes, condominium owners, and property owners with four or fewer units can now get up to $8,000 to install a heat pump HVAC system.

It’s part of a new round of rebates funded by the Biden administration’s Inflation Reduction Act. The first round is still open and provides rebates for clean energy home upgrades for a variety of appliances in low- and middle-income apartments.

Why it matters

Heat pumps can both heat and cool your home and are extremely efficient, which means they can help you save hundreds of dollars a year on your electric bill. Heat pumps are up to five times more efficient than traditional heating and cooling systems, meaning they can provide five times more cooling or heating power than the electricity they consume.

And because they don’t burn fossil fuels (like a traditional gas furnace) and are a lot more efficient than traditional A/C units, heat pumps not only improve indoor quality, but can help significantly cut climate pollution as more households install them.

These rebates aim to spur the adoption of heat pumps to fight climate change, while helping people cut energy costs. So if your gas furnace or A/C is on the fritz, consider upgrading to a heat pump.

What do the rebates cover?

As we said earlier, this is the second piece of new federal rebates to increase the adoption of clean energy appliances at home. This particular rebate gives income-qualified, single-family homes between $4,000 to $8,000 to install a heat pump HVAC system.

You can get the rebates upfront as an instant discount or as a paper check from the contractor after installation.

Keep in mind these rebates don’t cover electrical panel upgrades, which may be necessary depending on your home. However, these rebates are stackable with other financial incentives. Learn more about state and local clean energy incentives at switchison.org and climateaction.ca.gov.

Who’s eligible?

Low- and medium-income single-family homes, as well as properties with four or fewer units — such as mobile homes, duplexes, and condos — are eligible.

Homeowners or tenants making between 80% and 150% of the area median income can get up to $4,000 toward a heat pump HVAC system, and those with incomes less than 80% of the area median income will be eligible for up to $8,000.

For example, a four-person household in Orange County with an income of $129,750 or less would be eligible for the $8,000 rebate, and an income of $236,700 or less for the $4,000 rebate. A four-person household in L.A. County with an income of $110,950 or less would be eligible for the $8,000 rebate, and an income of $208,050 or less for the $4,000 rebate. You can check your eligibility here.

What if I’m a renter?

In L.A. city, 63% of households rent their homes, as do 54% in L.A. County, according to U.S. Census Bureau data.

Only the home or property owner can apply for the rebate, however, renters can encourage their landlord to apply. If your landlord pays the electric bill, tell them this can help them save money. If they don’t, tell them it will help you save money, improve your indoor air quality, and increase the value of their property.

If you’re worried about a heat pump HVAC upgrade leading to an increase in your rent, that’s valid, and something local nonprofits and researchers are working to address through policy (see our previous coverage on that here).

The L.A. City Council recently voted to eliminate a local provision allowing landlords to evict tenants in cases where “substantial remodel” work will take more than 30 days, which tenant advocates applauded as a necessary step to ensure renters are not punished by clean energy upgrades.

As the federal rebate rules currently stand, owners and landlords of low-income apartments or other rental properties who receive an income-qualified rebate are not allowed to raise rents due to energy upgrades or evict tenants to rent at higher rents for a minimum of two years.

If you rent on a property with more than four units you can check out our story on available rebates for a variety of clean appliances, such as induction stoves and heat pumps.

How do I apply?

Only the homeowner or property owner can apply.

You can check eligibility and apply for the rebates here. You need to work with a certified contractor, which you can find here.

What’s next?

President-elect Donald Trump has promised to “terminate” many of the clean energy rebates for consumers from the Biden administration’s Inflation Reduction Act. California is still awaiting approval from the Department of Energy for additional consumer rebate programs, so many of these rebates may be at risk under a Trump administration.

If you’re considering going solar, getting an electric vehicle or need to upgrade your electrical panel and want to benefit from federal financial incentives, time is of the essence. Check out this guide from the nonprofit Rewiring America to learn more about all the existing federal incentives for clean energy home upgrades.

Other clean energy resources