As part of President Biden’s Investing in America agenda, the U.S. Department of Energy (DOE) announced that Arizona has launched its first federal Home Energy Rebates program, supported by the Inflation Reduction Act. Even more, Arizona is the second state in the nation to launch the Home Electrification and Appliance Rebates (HEAR) portion of the rebate program—enabling low- and middle-income households to save on energy efficiency improvements.
Arizona’s launch is part of the Biden-Harris Administration’s nationwide initiative to provide $8.8 billion in Federal funding for states, territories, and Tribes to lower energy costs and increase efficiency in American homes by making it cheaper to install cost-saving measures such as heat pumps, electrical panels, and insulation. These energy-saving measures will save American households up to $1 billion annually in energy costs and support an estimated 50,000 U.S. jobs in residential construction, manufacturing, and other sectors. These investments also advance the President’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 are 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, all thanks to the Investing in America agenda.”?
“Home energy rebates for clean and energy-efficient appliances and upgrades are good for the planet because they help cut pollution, but more importantly, they are good for Arizonan families because they will save money by lowering energy bills,” said John Podesta, Senior Advisor to the President for International Climate Policy. “Congratulations to Arizona for making these game-changing Inflation Reduction Act incentives available to their residents.”
Many Americans spend a large portion of their monthly income to heat, cool and power their homes, and in Arizona, 1 in 10 households are severely energy-burdened, with some of the lowest-income families in the nation spending upwards of 30% of their income on energy bills. Overall, by participating in the Home Energy Rebate programs, individual households could save up to $14,000 for energy-efficient home upgrades and hundreds more on monthly energy bills. To advance the objectives of these programs, DOE is requiring states and territories to allocate at least half of the rebates to low-income households, defined as those earning 80% or less of their area median income, which is expected to benefit many households in disadvantaged communities. States and territories must also submit Community Benefits Plans to ensure good jobs and other economic opportunities are available. To help keep consumers informed and equipped with resources, DOE recently released a Consumer Bill of Rights framework and is encouraging state, territorial and Tribal rebates programs to adopt it.
