New York, New Pump!

Start spreading the news! New York kicks off first-in-nation home electrification rebate program (thanks, IRA!)

By Kristin G. Eberhard, JD , Senior Director of Policy, Rewiring America

Yesterday, New York became the first state in the nation to make available electrification rebates funded by the historic Inflation Reduction Act (IRA). This is a big deal! 

Over the next decade, the $8.8 billion rebate program will help lower energy bills and create healthier, more comfortable homes for low-and moderate-income households nationwide by significantly bringing down the upfront costs of electric appliances and other energy-efficiency upgrades. Sixteen other states have already applied for the funds and will be rolling out programs later this year, as more states continue to apply and make rebates available in 2025. 

The power of these rebate programs is in who they reach and what they build. 

In New York, the federal money will add to state funds in New York’s existing EmPower program, enabling low-income households to upgrade their homes with efficient electric appliances at little to no cost to them. By directing this program through EmPower , these incentives are going to the families who often spend the largest portion of their income on energy costs, are most impacted by unhealthy indoor and outdoor fossil fuel pollution, and whose homes are often hardest to keep comfortable in times of extreme temperature. EmPower is already expected to reach tens of thousands of New York households this year. But with this initial influx of $39 million, and the remaining $279 million the state is expected to be allocated, New York will significantly expand the impact of this transformative program.

While New York is first out of the gate, other states will be rolling out their own unique Inflation Reduction Act rebate offerings over the course of the year and into 2025. Check out the Department of Energy’s nifty map tracker and bookmark our calculator to see if rebates are available yet in your state. 

The federal funding was written to give states flexibility to design these upfront discounts to meet the needs of their communities. Every state is evaluating its needs and determining where it can best put the federal dollars to work. For example, Maine already has a successful program for upgrading single-family homes, so plans to focus the federal rebates on harder-to-reach multi-family homes. Colorado has shovel-ready affordable housing projects where electrification dollars can help lower bills and improve indoor air quality, so they are also focusing funds on larger-scale residential building developments.  

Other states are likely to funnel the federal money through existing programs, as New York is doing. Those programs are already established and often have a waiting list, so using them as the vehicle will ensure the IRA rebate money goes out faster. Like New York, they may also choose to stack federal funds on top of other funds to help low-income households achieve upgrades at zero upfront cost, ensuring the federal funding helps the households that need it most. 

As we celebrate this powerful moment on the road to widespread residential electrification, let’s remember that Americans with a tax burden have been and continue to be eligible for a 30% federal tax credit on heat pumps, heat pump water heaters, rooftop solar, and other efficient upgrades. And many states and utilities are offering rebates now. If you live in Colorado, Connecticut, DC, Pennsylvania, Rhode Island, or Vermont, you can see all your available incentives at our calculator. We’re rolling out half a dozen more states by this summer!

Upgrading your home to be more comfortable, healthy, and efficient is getting easier every day. Make an electric plan today!

And finally: What do you know about induction? We've got you covered!