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.
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.
Phases of Efficiency Arizona
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 offers 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 is 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. |
The lesser of: 100% of the product cost -or- Up to the Maximum Rebate Listed Below Total Combined Not to Exceed $14,000 |
The lesser of: 50% of the product cost -or- Up to the Maximum Rebate Listed Below Total Combined Not to Exceed $14,000 |
Not Eligible |
| ENERGY STAR electric heat pump for space heating and cooling: Rebate up to $8,000 Homes with an existing heat pump are not eligible to receive a Heat Pump for Space Heating Rebate. New product must replace a non-electric appliance or be the first-time purchase of a heat pump for space heating and cooling. |
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| ENERGY STAR electric heat pump water heater: Rebate up to $1,750 Homes with existing heat pump water heater are not eligible to receive a Heat Pump Water Heater Rebate. New product must replace a non-electric appliance or be the first-time purchase of a heat pump water heater. |
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| ENERGY STAR electric heat pump clothes dryer: Rebate up to $840* Homes with existing heat pump dryers are not eligible to receive a Heat Pump Dryer Rebate New product must replace a non-electric heat pump clothes dryer or be the first-time purchase of a heat pump dryer. |
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| ENERGY STAR electric stove/cooktop/range/oven: Rebate up to $840* Rebate only available on one of the appliances listed above. New product must be replacing an existing non-electric fuel source appliance. |
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| Insulation, air sealing, ventilation: Rebate up to $1,600 Rebate amount is combined maximum incentive for insulation, air sealing, and ventilation. Homes will NOT receive the rebate amount on each of the services listed. |
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| Electrical Wiring: Rebate up to $2,500 This rebate can only be used in conjunction with equipment install. |
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| Electrical load service center (electrical panel): Rebate up to $4,000 This rebate can only be used in conjunction with equipment install. | |||
| Total Potential Rebates | $14,000 | ||
*Rebate only available with the installation of a qualified product
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:
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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!
