By the Home Energy Rebate Finder editorial team · Editorial policy · Last updated July 25, 2026

Inflation Reduction Act (IRA)

A 2022 federal law that, among other things, funded roughly $8.8 billion in Home Energy Rebates (the HOMES and HEAR programs) administered by state energy offices. The rebate funding survived the 2025 tax law and runs until spent or September 30, 2031.

HOMES (Home Efficiency Rebates)

An IRA rebate program open to all income levels. The rebate is based on your home's modeled or measured whole-home energy savings — typically up to $8,000, with larger amounts for deeper savings and low-income households. The exact amount is set after an energy assessment.

HEAR / HEEHRA (Home Electrification and Appliance Rebates)

An IRA rebate program for households at or below 150% of area median income. Federal caps per measure include $8,000 for a heat pump, $4,000 for an electrical panel, $1,750 for a heat pump water heater, and $1,600 for insulation and air sealing, with a $14,000 household total. Below 80% AMI the rebate can cover up to 100% of cost; at 80–150% AMI, up to 50%.

Area Median Income (AMI)

The midpoint household income for a metro area or county, published by HUD. Income-based programs like HEAR and weatherization set their eligibility limits as a percentage of AMI (for example, 80% or 150% of AMI), adjusted for household size.

Section 25C (Energy Efficient Home Improvement Credit)

A former federal tax credit worth 30% of qualifying efficiency improvements, up to $1,200 per year ($2,000 for heat pumps). It ended December 31, 2025 — no 25C credit exists for property placed in service in 2026 or later.

Section 25D (Residential Clean Energy Credit)

A former federal tax credit worth 30% of the cost of solar panels, battery storage, geothermal heat pumps, and similar clean-energy property, with no dollar cap. It ended December 31, 2025; unused credit from pre-2026 installs generally carries forward.

Rebate

Money back on a purchase, paid by a program or utility — either after you apply with receipts or instantly at the point of sale. Unlike a tax credit, a rebate doesn't depend on how much tax you owe.

Tax credit

A dollar-for-dollar reduction of the income tax you owe, claimed when filing a return. The federal home energy tax credits (25C/25D) ended after 2025, so in 2026 rebates are the main federal savings mechanism.

Point-of-sale rebate

A rebate applied as an instant discount when you buy, instead of a check later. Many HEAR implementations and some utility programs work this way through participating contractors or retailers.

Stacking

Combining more than one incentive on the same project — for example, a utility rebate plus an IRA rebate. Usually allowed across different programs, but the combined total generally can't exceed the project cost, and each program sets its own rules.

Weatherization Assistance Program (WAP)

A long-running federal program that provides free efficiency upgrades — insulation, air sealing, and related repairs — to income-qualified households through local agencies. It is separate from the IRA rebates and was not affected by the 2025 tax law.

Heat pump

An electric system that both heats and cools a home by moving heat rather than generating it, typically 2–4x more efficient than electric resistance heating. The flagship HEAR measure, with a federal rebate cap of $8,000.

Heat pump water heater

A water heater that uses heat-pump technology, using roughly 60–70% less electricity than a standard electric tank. HEAR caps its rebate at $1,750.

ENERGY STAR

The U.S. government's efficiency certification for appliances and equipment. Many rebate programs require ENERGY STAR-certified products, and its Rebate Finder lists current utility offers by ZIP code.

DSIRE

The Database of State Incentives for Renewables & Efficiency — a comprehensive, regularly updated catalog of state, local, and utility energy incentives, run by N.C. State University.

Blower-door test

A diagnostic where a calibrated fan depressurizes the house and instruments measure air leakage (in ACH50). It pinpoints leaks for air-sealing crews and provides the before/after proof used by measured-savings programs like HOMES.

SEER2 / HSPF2

The current federal efficiency ratings for cooling (SEER2) and heat-pump heating (HSPF2). Rebate programs set minimum ratings — a unit that misses the required tier by a fraction can forfeit the entire rebate.

CEE tiers

Efficiency tiers published by the Consortium for Energy Efficiency. Many utility and HEAR implementations define qualifying equipment as “CEE Tier 1/2” or higher rather than naming specific models.

Manual J load calculation

The industry-standard method for sizing heating and cooling equipment room by room. Insist on one before accepting a heat pump quote — oversized systems cost more and cycle inefficiently.

Mini-split (ductless heat pump)

A heat pump with a small outdoor unit and one or more wall-mounted indoor heads, requiring no ductwork. A common HEAR-qualified choice for homes without existing ducts.

Air sealing

Closing the gaps and cracks that leak conditioned air — around attic penetrations, rim joists, windows, and doors. Cheap, high-payback, and bundled with insulation in the $1,600 HEAR insulation cap.

State energy office

The agency in each state that administers IRA Home Energy Rebates (for example, GEFA in Georgia or SECO in Texas). It sets final program rules, income verification, and launch timing.

Pre-approval / reservation

A program's confirmation — issued before installation — that funds are reserved for your project. Where required, skipping pre-approval usually forfeits the rebate even if the paperwork is otherwise perfect.