By the Home Energy Rebate Finder editorial team · Editorial policy · Last updated July 3, 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.