Save Money. Save Energy.

The Inflation Reduction Act, signed by President Biden on August 16, 2022, allocates millions of dollars to Arizona households to increase energy efficiency, promote clean energy and combat climate change through various initiatives, including the Home Efficiency Rebates Program (HOMES) and the Home Electrification and Appliance Rebates Program (HEAR) the State of Arizona will now be offering. The first phase of Efficiency Arizona will be an air-conditioning replacement program. Future phases will roll out in the next few months. Sign up to receive program updates below.

In Arizona, the Governor’s Office of Resiliency will manage the Efficiency Arizona Rebate Programs with a third-party implementer and will work closely with a wide array of local community based organizations, stakeholders, utilities and industry associations across the state. Efficiency Arizona will include a variety of ways to ensure Arizona residents save energy and have a more resilient home.

Efficiency Arizona will be rolled out in phases over the course of the next few months.

The first phase of the program will focus on the replacement of air conditioning units for Arizonans facing financial hardship. Please note, not everyone will be eligible to participate since eligibility will be based on a variety of factors including household income. Additionally, homes with existing heat pumps are not eligible for the heat pump rebate.

Efficiency Arizona
Phase I Launch

Air-conditioning replacement program

Efficiency Arizona
Phase II Launch

Home retrofit program with energy efficiency rebates available state-wide

Efficiency Arizona
Phase III Launch

Multifamily Pilot Program

The HEAR program provides rebates for eligible electric appliances and upgrades in low-income and historically underserved households. Please note, not everyone will be eligible to participate since eligibility will be based on a variety of factors including household income. Additionally, homes with existing heat pumps are not eligible for the heat pump rebate.

This program will offer rebates for installing qualifying equipment. A single household can receive a maximum of $14,000 in total rebate dollars from this program. Area Median Income (AMI) varies across the state and is both location dependent and based on household size. When you look up the AMI make sure to look at where you live, what your income is, and how many people reside in your household. The AMI is updated by the U.S. Department of Housing and Urban Development (HUD) annually. Households above 150% area median income (AMI) are not eligible for this program.

Here’s a breakdown of the rebates:

Type of Home Energy Project Tier I: Households at 80% AMI or less Tier II: Households between 80% and 150% AMI Tier III: Households above 150% AMI
Home Electrification Project Qualified Technologies

Only households with an income below 150% AMI are eligible.
100% of project costs up to $14,000 50% of project costs up to $14,000 Not Applicable
ENERGY STAR electric heat pump water heater up to $1,750
ENERGY STAR electric heat pump for space heating up to $8,000
ENERGY STAR electric heat pump clothes dryer up to $840
ENERGY STAR electric stove, cooktop, range, oven to $840
Electrical load service center (electrical panel) up to $4,000
Electrical Wiring up to $2,500
Insulation, air sealing, ventilation up to $1,600
Total Potential Rebates $14,000

The HOMES program is intended to provide performance-based rebates for comprehensive home energy-saving retrofits, with the rebate amount depending on the level of energy savings achieved. This will be a comprehensive effort to examine homes and multifamily residences to identify their specific energy efficiency needs. Our experts analyze applicants’ homes to craft the best solution for their specific needs. Based on verification of income, some homeowners may be eligible for specific programs, but not for others. HOMES will be available later in the first quarter of 2025.

Getting the word out to Arizona homeowners

Easy-to-use portal for customer info & income verification

Detailed review of home energy usage and potential opportunities

Customer’s investment options

Qualified contractor to perform work and ensure it is done correctly

State to Federal compliance reporting

Your eligibility for these programs will be based on Department of Energy income eligibility thresholds. One way to demonstrate eligibility is through Categorical Eligibility. Categorial Eligibility recognizes qualification through “Recognized” programs listed here: Federal Programs Approved for Categorical Eligibility for DOE Home Energy Rebates (“Recognized Programs”)

  • Low Income Home Energy Assistance Program (LIHEAP)
  • Medicaid
  • Supplemental Nutrition Assistance Program (SNAP)
  • Head Start
  • Lifeline Support for Affordable Communications (Lifeline)
  • Food Distribution Program on Indian Reservations (FDPIR)
  • National School Lunch Program – Free (NSLP)
  • Housing Improvement Program (HIP)
  • Housing Opportunities for Persons with AIDS
  • Supplemental Security Income (SSI)
  • Weatherization Assistance Program (WAP)
  • Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)

Otherwise, eligibility is based on Area Median Income. Area Median Income (AMI) varies across the state and is both location dependent and based on household size. When you look up the AMI make sure to look at where you live, what your income is, and how many people reside in your household. The AMI is updated by the U.S. Department of Housing and Urban Development (HUD) annually. See what the median income for your part of the state is.

You may download and read our Consumer Protection Plan at this link (PDF file).

Efficiency Arizona includes deploying resources and professionals statewide to reach as many eligible Arizona residents as possible. We’re developing a whole-home approach that includes more than just replacing equipment. Due to the very specific guidelines of these federally funded programs, we will work to craft solutions that combine various sources of funding to help homeowners achieve their efficiency goals. (This is commonly called “braiding”).


The Office of Resiliency will be announcing the next phase of the program in the coming months. In the meantime, please fill out the form below to sign up for our newsletter and stay informed about the latest updates.

Look for more information on Efficiency Arizona at the following:

Look for the Efficiency Arizona mobile information lab, which will be at community events statewide in the coming months

Visit this website regularly for updates and information

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Ready to save money on your energy costs? The Arizona Clean Energy Hub connects you with the latest energy incentive programs available for households, businesses, schools, local governments, and other organizations. Click here to visit the Clean Energy Hub!