After a pause due to federal grant funding access, the Efficiency Arizona program has restarted on a limited basis to serve the immediate needs of Arizonans ahead of summer, as federal funding is made available. We are processing applications that have already been started or completed prior to the program pause. We plan to open the program to new applicants soon.
Save Money. Save Energy.
Great news for Arizona residents — you may be eligible to take part in state-wide programs that could improve the energy efficiency of your home and potentially save you money on your utility bills!
The initiative is called EFFICIENCY ARIZONA and it’s offered by the Arizona Governor’s Office of Resiliency through The U.S. Department of Energy (DOE) Home Energy Rebates programs. These rebates are expected to save households across the United States millions of dollars annually.
What is Efficiency Arizona?
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.
First Phase of Efficiency Arizona is Open
Efficiency Arizona will be rolled out in phases.
The first phase of the program is underway and focuses 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.
Upcoming Phases of the Program
Mid 2025
Efficiency Arizona Phase II Launch
HEAR Program Expansion
Late 2025
Efficiency Arizona Phase III Launch
HEAR Multifamily Pilot Program
Late 2025
Efficiency Arizona Phase IV Launch
HOMES
The HEAR 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. Program availability is contingent on federal funding availability. A single household can receive a maximum of $14,000 in total rebate dollars from this program. Eligibility will be based on a variety of factors including household income. Income Qualification is based on your Area Median Income (AMI), a statistic used by the U.S. Department of Housing and Urban Development (HUD) to determine eligibility for federal housing programs. AMI is the midpoint of a region’s income distribution, where half of the families earn more than the median and half earn less. 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 HUD annually. Households above 150% AMI are not eligible for this program.
Here’s a breakdown of the rebates:
| Type of Home Energy Project | Tier I: Households less than 80% AMI | 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 | ||
*Rebates currently being offered.
The HOMES Program
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 is tentatively scheduled to be available in late 2025, pending federal grant funding availability.
Simple, Streamlined, Typical Approach to Program Delivery
Education
Getting the word out to Arizona homeowners
Applicant Screening
Easy-to-use portal for customer info & income verification
Energy Audit
Detailed review of home energy usage and potential opportunities
Scope Development
Customer’s investment options
Installation & QC/QA
Qualified contractor to perform work and ensure it is done correctly
Reporting & Compliance
State to Federal compliance reporting
What are the Next Steps and How Can I Stay Informed?
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 visit the Contact Us page to sign up for our newsletter and stay informed about the latest updates.
Look for more information on Efficiency Arizona at the following:
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!
