Homeowners (like you) around the country are cashing in on whole-home energy rebates. Thanks to the Inflation Reduction Act (IRA), millions of folks now have access to significant financial incentives to make their homes more energy-efficient. One of the most powerful—but lesser-known—tools in the IRA toolkit? The HOMES Rebate Program.
If you’ve never heard of HOMES, you’re not alone. But if you’re planning major home upgrades like a heat pump installation, insulation improvements, or air sealing, this program could help you unlock thousands of dollars in rebates.
Let’s break it all down—what the HOMES program is, who qualifies, how energy savings are measured, and how MyNewHeatPump helps you navigate the process like a pro.
What Is the HOMES Rebate Program?
The HOMES Program was created under the Inflation Reduction Act to reward homeowners for making significant improvements to their home’s energy efficiency. The bigger your energy savings, the bigger your rebate.
Here’s how it works in a nutshell:
- You complete a qualifying home upgrade (like installing a heat pump).
- You work with a contractor or aggregator to estimate and measure your energy savings.
- Based on your verified savings, you receive a performance-based rebate, typically up to $8,000 for single-family homes. However, some states are offering higher maximums (like $12,000 or even $16,000) for low-income households completing qualifying whole-home upgrades through the HOMES program.
Unlike point-of-sale rebates, HOMES is all about whole-home performance. It doesn’t just reward a single appliance purchase. Instead, it looks at how much energy your home saves as a result of the upgrade.
Who Qualifies for the HOMES Program?
Great news: most homeowners qualify—but how much you receive depends on two things:
- How much energy your home saves
- Your household income
Let’s look at the two main tiers:
Standard Households:
If your household income is above 80% of your area’s median income (AMI):
- You can earn up to $2,000 for a 20–35% reduction in energy use
- Or up to $4,000 for a 35% + reduction
Low-to-Moderate-Income Households (LMI):
If your income is at or below 80% of AMI:
- You can earn up to $4,000 for 20–35% energy savings
- Or up to $8,000 for savings of 35% or more
It’s important to note here that these are standard rebate amounts set by the DOE and can change from state to state.
💡 Pro tip: MyNewHeatPump can help determine if you meet the income eligibility requirements and guide you to the best rebates available in your state.
What Projects Qualify for HOMES Rebates?
HOMES isn’t just about one appliance; it’s about your entire home’s energy performance. That means you can qualify with:
- Heat pump installations
- Insulation upgrades
- Air sealing
- High-efficiency windows and doors
- Ductwork improvements
- Or any combination of efficiency improvements that produce measurable energy savings
Even better? You can stack HOMES with other rebates and the 25C federal tax credit, depending on your state’s implementation.
How Are Energy Savings Measured?
Here’s where things get a little technical—but stay with us.
There are two main ways to measure energy savings for HOMES:
1. Modeled Performance Path
This path uses energy modeling software to estimate your home’s energy savings before the upgrade takes place. Based on this model, your project can qualify for a rebate as long as it meets the savings thresholds.
Best for: Simple projects or homes without prior energy data.
2. Measured Performance Path
This method uses real energy usage data, like past utility bills, to measure savings after your upgrades are complete.
Best for: Data-savvy homeowners or those working with an aggregator like MyNewHeatPump.
What’s an Aggregator and Why Does It Matter?
The HOMES program is complex. Between energy modeling, state-level rules, income verification, and measuring performance, it can be easy to get overwhelmed.
That’s where aggregators like MyNewHeatPump come in.
We serve as the middleman between you, your contractor, your utility company, and your state energy office. Our job is to:
- Bundle multiple upgrades into one whole-home project
- Handle the paperwork and rebate submissions
- Coordinate inspections and utility data
- Get you the maximum rebate possible
We’re your rebate matchmaker, connecting you with state-qualified contractors who specialize in IRA-funded upgrades.
And remember, working with an aggregator often unlocks higher rebates, especially when stacking HOMES with other programs like HEAR or 25C tax credits.
Can I Use HOMES and Other Rebates Together?
Absolutely. While HOMES focuses on whole-home savings, it can be stacked with point-of-sale rebates (like those under the HEAR program) and federal tax credits for even more savings.
For example:
- Get $4,000 from HOMES for your heat pump upgrade
- Add a $2,000 federal tax credit under the 25C program
- AND get point-of-sale rebates from your utility or state program
That’s serious savings. And MyNewHeatPump specializes in “stacking and braiding” rebates so you don’t leave any money on the table.
When and Where Is HOMES Available?
Each state is responsible for rolling out the HOMES rebate program, and timelines vary. Some states have already launched, while others are still in the planning phase.
Not sure what’s available in your zip code? MyNewHeatPump is tracking every rollout, pilot program, and policy update so you don’t have to.
Final Thoughts: Should You Wait or Get Started?
If you’re considering an energy-efficient upgrade, don’t wait for every program to go live before making a move.
Many rebates, including HOMES, can be applied retroactively, meaning if you install a heat pump or improve insulation today, you may still qualify once your state rolls out its program.
Let us help you make the smartest move for your home—and your wallet.
Find Out What Home Upgrade Rebates You Qualify For
Are you wondering what rebates and tax credits you qualify for? MyNewHeatPump connects you with qualified contractors, bundles your upgrades, and handles the paperwork so you can get maximum savings with minimal hassle.
Take our free eligibility quiz today to get started!
