Housing Investment

The Inflation Reduction Act (IRA) allocates over $8 billion to energy efficiency and electrification through Home Energy Rebates (HER). While many federal energy programs and tax credits have been impacted by recent federal policy changes, this program, which is administered through state energy offices, has remained in development but has run into some roadblocks. This blog post offers a state-by-state snapshot of where states in the NEEP region stand in designing and delivering these programs.

Home Energy Rebates include two separate programs, the Home Owner Managing Energy Savings Act (HOMES) and the Home Electrification and Appliance Rebates (HEAR)

  • HOMES provides $4.3 billion in rebates for whole-home retrofit packages based on the reduction in home energy use. Measures offered under HOMES include building envelope upgrades, appliance and HVAC equipment replacement, and installation tasks. These rebates are capped at $20,000 per household with the option to expand funding for low-income households.
  • HEAR provides $4.5 billion to fund efficient electrification of low- and moderate-income households. Measures offered under HEAR include appliance upgrades, installation costs, and enabling measures such as upgrading circuit panels, insulation, air sealing, ventilation, and wiring.


Current Status of Home Rebates Programs in the Northeast and Mid-Atlantic
The table below reflects the status of HOMES and HEAR programs in each state of the NEEP region as of June 2025. For states to implement Home Energy Rebates, they need U.S. Department of Energy (DOE) approval of two components. The first component is approval of the application. Once applications are approved, states then submit Blueprints with additional details, such as a Market Transformation Plan. Following Blueprint submission, DOE may provide feedback to the state and must provide approval to launch. Therefore, states may have an approved application but still be waiting for final approval of their Blueprints from DOE before they are approved to launch. 

Table. Status of IRA Home Energy Rebate programs as of July 2025

State

HOMES Status

HEAR Status

Connecticut

Awaiting Final Approval by DOE

Awaiting Final Approval by DOE

Delaware

Awaiting Final Approval by DOE

Awaiting Final Approval by DOE

District of Columbia

Launched

Launched

Maine

Awaiting Final Approval by DOE

Launched

Maryland

Awaiting Final Approval by DOE

Awaiting Final Approval by DOE

Massachusetts

Awaiting Final Approval by DOE

Awaiting Final Approval by DOE

New Hampshire

Awaiting Final Approval by DOE

Awaiting Final Approval by DOE

New Jersey

Awaiting Final Approval by DOE

Awaiting Final Approval by DOE

New York

Awaiting Final Approval by DOE 

Launched

Pennsylvania

Awaiting Final Approval by DOE

Awaiting Final Approval by DOE

Rhode Island

Awaiting Final Approval by DOE

Launched

Vermont

Awaiting Final Approval by DOE

Awaiting Final Approval by DOE

West Virginia 

Awaiting Final Approval by DOE

Awaiting Final Approval by DOE

In the NEEP region, three states (New York, Rhode Island, and Maine) and the District of Columbia have had one or more programs fully approved and now launched. 

All other states in the region have had their initial application approved but still either need to submit their Blueprints or have submitted these Blueprints and are waiting for DOE to accept them. These states are labeled as “Awaiting Final Approval.” To learn more about the approval process, see DOE's Office of State and Community Energy Programs instructions.

State-by-State Roundup 
Connecticut 
Status: Both programs are awaiting final approval by DOE.
The Connecticut Department of Energy & Environmental Protection (CT DEEP) oversees the implementation of IRA Home Energy Rebates in the state and is partnering with utilities. Connecticut was allocated $99 million, with $49.8 million for HOMES and $49.4 million for HEAR. DEEP aims to launch HEAR in mid-2025 and HOMES in early 2026. To learn more, see DEEP’s website Inflation Reduction Act Home Energy Rebate Programs.

  • HOMES Program: The program intends to primarily target low-income multifamily buildings, with priority given to low-income multi-family households that are already qualified through existing CT programs. DEEP is in the process of contracting with utilities in the state to administer the program under EnergizeCT’s Multifamily Initiative. HOMES Blueprints are being drafted and estimated for submission later in 2025, and DEEP aims to launch the program in early 2026, contingent on DOE approval.
  • HEAR Program: The HEAR program intends to target low-income households (<80 percent area median income) in both single family and multifamily buildings. DEEP plans to administer the program through Energize CT’s Multifamily Initiative, Energize CT's Home Energy Solutions program, and Energize CT's Home Energy Solutions- Income Eligible program. On April 30, 2025, DEEP submitted its Implementation Blueprint Plans for the HEAR program, which is expected to launch mid-2025, contingent on DOE approval. HEAR Blueprints are currently under review by DOE.


Delaware
Status: Both programs are awaiting final approval by DOE.
Delaware’s Department of Natural Resources and Environmental Control (DNREC) oversees the implementation of the IRA Home Energy Rebates. Delaware was allocated $65.8 million, with $33 million for HOMES and $32.8 million for HEAR. To learn more, see DNREC’s website Inflation Reduction Act. Program updates are anticipated to come out by late 2025 and customers can visit the Energize Delaware website. In the meantime, customers can visit www.energizedelaware.org for information regarding other efficiency program options.

  • HOMES Program: The Delaware HOMES program intends to provide whole-house rebates for energy efficiency improvements in single and multifamily homes. DNREC does not have a list of comprehensive measures and instead will consult recommendations from home energy audits. One of the measures must include air sealing or insulation. To date, DNREC has received administrative funding.
  • HEAR Program: Delaware’s HEAR program intends to provide rebates for electric appliances and other efficiency measures, varying across single and multifamily households and targeting low-to-moderate income households. To date, DNREC has received administrative funding.


District of Columbia
Status: Both programs have been launched.
The District’s Department of Energy and Environment (DOEE) oversees the implementation of the IRA Home Energy Rebates. DC was allocated $59.4 million, with $29.8 million for HOMES and $29.6 million for HEAR. Both programs have been launched and are being used to expand existing low-income energy efficiency and electrification programs administered by the DC Sustainable Energy Utility (DCSEU). To learn more, see DOEE’s website IRA Rebates & Tax Incentives.

  • HOMES Program: The HOMES program expands the existing Affordable Housing Retrofit Accelerator (AHRA) run by DCSEU. The funding will provide holistic technical assistance and financial assistance to multifamily affordable housing owners for deep energy retrofits.
  • HEAR Program: The HEAR program provides financial assistance to low-income households for electrification upgrades, and to target single-family and small multifamily households. This program will be used to expand the Affordable Home Electrification Program (AHEP) run by the DCSEU.


Maine
Status: HEAR has been launched; HOMES is awaiting final approval by DOE.
The Maine Governor’s Energy Office oversees both the IRA Home Energy Rebate programs in coordination with Efficiency Maine. Maine was allocated $71.6 million, with $35.9 million for HOMES and $35.7 million for HEAR. Eligible buildings include new construction of affordable multifamily housing and income-eligible single family manufactured home retrofits. To learn more, see Efficiency Maine’s website IRA Home Energy Rebates and PDF overview

  • HOMES Program: The HOMES program will be technology-neutral, for any combination of improvements that achieve energy savings. It will focus on multifamily buildings and renters, especially low-income multifamily households for whom rebates will be enhanced. It will prioritize projects with modeled energy savings of over 35 percent.  The application has been submitted and is under conditional award status since January 2025.
  • HEAR Program: Funding for HEAR became available to Maine residents in September 2024 through Efficiency Maine. The program provides whole-home heat pumps and funding to upgrade electrical panels and wiring. Rebates are available for low-income owners of manufactured homes and for affordable multifamily new construction.


Maryland
Status: Both programs are awaiting final approval by DOE.
The Maryland Energy Administration (MEA) oversees both the IRA Home Energy Rebate programs for the state. Maryland was allocated $136.7 million, with $68.6 million for HOMES and $68.2 million for HEAR. MEA plans to partner with the Maryland Department of Housing and Community Development for the low-income components of both programs. Both programs have been conditionally approved and MEA is pursuing final approval from DOE before they can be launched. To learn more, see MEA’s website IRA Home Energy Rebate Programs.

  • HOMES Program: Maryland’s HOMES program, called Home Efficiency Rebates Opportunity Program (HERO), intends to provide whole-home energy efficiency upgrades that will reduce home energy use by at least 20 percent. The program intends to focus on residents who cannot access other state energy efficiency programs.
  • HEAR Program: The HEAR program intends to replace fossil-fuel appliances with electric alternatives. The program, which is sector- and technology-agnostic, intends to target delivered fuel customers for adoption of heat pumps. The program is also intended to support a Working for Accessible Renewable Maryland Thermal Heat Act (WARMTH Act) network geothermal pilot program. 
     
""IRA rebates status map


Massachusetts
Status: Both programs have received full awards and are awaiting final approval by DOE.
The Massachusetts Department of Energy Resources (MA DOER) oversees the implementation of IRA Home Energy Rebates for the state. Massachusetts was allocated $145.9 million, with $73.2 million for HOMES and $72.8 million for HEAR. To learn more, see DOER’s presentation and website with funding updates. 

  • HOMES Program: Massachusetts is using the funds to (1) provide rebates based on energy savings in communities served by Municipal Light Plants for customers not served by the Mass Save® program (approx. $25M), and (2) provide additional funding for the DOER Affordable Housing Decarbonization Grant Program (AHD), targeting multi-family affordable deed-restricted rental housing statewide (approx. $45M).
  • HEAR Program: The federal funds will be integrated into the Mass Save program to serve income eligible customers who will receive no-cost electrification measures. The HEAR funds will allow Mass Save to serve additional customers, but do not change the offerings available. Customers will apply for services through Mass Save and there will be no separate application process to receive HEAR funds.


New Hampshire
Status: Both programs are awaiting final approval by DOE.
The New Hampshire Department of Energy (NH DOE) oversees the implementation of the IRA Home Energy Rebates for the state. New Hampshire was allocated $69.6 million, with $34.8 million allocated for HOMES and $34.7 million for HEAR. To learn more, see NH DOE’s website for HOMES and HEAR

  • HOMES Program: The program intends to provide rebates for energy efficiency upgrades in single-family and multifamily homes. Rebate amounts for each project will depend on modeled energy savings.
  • HEAR Program: NH DOE is selecting an implementer for the HEAR program. The program will offer rebates to homeowners to replace existing appliances or install new ones that are more energy efficient. Rebate amounts are dependent on income level, with no rebates available for consumers earning more than 150 percent of the area median income.


New Jersey
Status: Both programs are awaiting final approval by DOE.
The New Jersey Board of Public Utilities (NJBPU) oversees the implementation of the IRA Home Energy Rebates for the state. New Jersey was allocated about $183 million, with $91.6 million for HOMES and $91.3 million for HEAR. The state was also allocated $3.5 million for Training for Residential Energy Contractors (TREC). The NJBPU is finalizing the design for all three programs and intends to launch them and make rebates available in the fall of 2025. To learn more, see the NJBPU’s updates on funding and NJ Clean Energy’s website

  • HOMES Program: HOMES program funding will be used to start a multifamily program in the state, M-RISE, that will support whole building energy efficiency projects for low-income multifamily homes. Projects and measures include wall insulation, duct repairs, heat pump installation, and heat pump water heaters.
  • HEAR Program: NJBPU intends to use HEAR funding to fund CP-HEAR, whose primary goal is to serve low-income households by upgrading electric panels and wiring. It will also feature outreach efforts focused on low-income delivered fuel and electric resistance customers to help convert their appliances to heat pumps.


New York
Status: HEAR has been launched; HOMES is awaiting final approval by DOE.
The New York State Energy Research and Development Authority (NYSERDA) implements IRA Homes Energy Rebates for the state. New York was allocated $317.4 million, with $159.3 million for HOMES and $158.4 million for HEAR. HEAR has been launched and HOMES is pending final approval by DOE. To learn more, see NYSERDA’s website Inflation Reduction Act Overview

  • HOMES Program: NYSERDA is in the process of developing IRA HOMES rebates with funding that has been approved by the DOE. HOMES funds will supplement the existing EmPower+ program. It will offer no-cost home energy assessments and no-cost direct install efficiency upgrades for low- and moderate-income households. Additional rebates will include offerings for multifamily buildings and high-efficiency appliances.
  • HEAR Program: NYSERDA is launching the HEAR program in phases, with the first phase in June 2024 that expanded incentives for weatherization, electrical upgrades, heat pumps, and heat pump water heaters for low-income households in 1-4 unit buildings under the EmPower+ program. The second phase, launched in November 2024, introduced retail point-of-sale appliance rebates for heat pump clothes dryers through the Appliance Upgrade Program


Pennsylvania
Status: Both programs are awaiting final approval by DOE.
The Pennsylvania Department of Environmental Protection (PA DEP) implements the IRA Home Energy Rebates for the state. Pennsylvania was allocated $258.9 million, with $130 million for HOMES and $129.2 million for HEAR. Pennsylvania has received the full program award for HEAR but is still waiting for final approval from DOE to launch the program and has obtained partial conditional approval for its HOMES application. PA DEP plans to launch both programs as the Penn Energy Savers Program in 2025. The state is currently compiling a Qualified Contractor Network. Interested contractors can learn more here. To learn more, see the PADEP’s website Inflation Reduction Act Overview.


Rhode Island
Status: HEAR has been launched; HOMES is awaiting final approval from DOE. 
The Rhode Island Office of Energy Resources (RI OER) implements the IRA Homes Energy Rebates for the state. Rhode Island was allocated $63.7 million, with $32 million for HOMES and $31.8 million for HEAR. To learn more, see RI OER’s website Home Energy Rebate Programs.

  • HOMES Program: Rhode Island’s HOMES program requires that 40 percent of benefits go to disadvantaged communities, 40 percent to low-income homes (<80 percent of area median income), and 10 percent to multifamily homes. The program proposal includes a plan to create a new low-income multifamily Clean Heat RI pathway to provide targeted energy efficiency support to multifamily buildings. RI OER submitted the HOMES application in August 2024; it is pending approval.
  • HEAR Program: Rhode Island’s HEAR program low-income pathway has launched. This program provides rebates for electric wiring and panel upgrades, heat pump clothes dryers, and electric or induction cooktops. The low-income rebate pathway (under 60 percent AMI) launched September 17, 2024. The moderate-income pathway (up to 150 percent AMI) is under development and is expected to launch in 2025.


Vermont
Status: Both programs are awaiting final approval by DOE.
The Vermont Department of Public Service (VT DPS) oversees implementation of the IRA Home Energy Rebates for the state. Vermont was allocated $58.5 million, with $29.3 million for HOMES and $29.2 million for HEAR. To learn more, see the VT DPU’s website Inflation Reduction Act.

  • HOMES Program: Vermont’s HOMES program will be delivered through the state’s Weatherization Assistance Program (WAP). It will provide comprehensive energy efficiency upgrades to low-income households (<80 percent of area median income).
  • HEAR Program: Vermont’s HEAR program provides rebates to convert homes to heat pumps as the primary heating source. The VT DPS intends to roll out HEAR rebates through three programs: (1) a program to provide heat pump incentives for moderate-income households ($9 million), (2) a program to provide no-cost heat pump installations for weatherized low-income homes ($10 million), and a (3) program for new affordable multifamily housing ($10 million). Vermont’s HEAR funding has been conditionally approved, but the state is unsure when the program will launch.


West Virginia 
Status: Both programs are awaiting final approval by DOE.
West Virginia’s Office of Energy (WVOE) oversees implementation of the IRA Home Energy Rebates for the state. West Virginia was allocated $88.2 million, with $44.3 million for HOMES and $44 million for HEAR. WVDOE’s application for both programs was approved in January 2025, and it anticipates launching both programs in August 2025. To learn more, see the WV Office of Energy’s website Home Energy Rebates Programs.

  • HOMES Program: West Virginia’s HOMES program will focus on whole home retrofits and performance-based rebates to reduce the initial cost of energy efficiency upgrades, improve home performance, and lower utility bills for customers. HOMES program rebates will provide up to $20,000 per home, with rebates varying based on both occupant income and the modeled energy saved from the planned upgrade. Qualifying low-income households will be eligible to receive upgrades at no out-of-pocket cost.
  • HEAR Program: West Virginia’s HEAR program will focus on home electrification for low-to-moderate income customers only, with upgrades for existing appliances to Energy Star or equivalent models. Rebates of up to $14,000 per home will be available. A key goal of the program is to reduce energy consumption and lower utility bills by improving the overall efficiency of residential systems. Qualifying low-income households will be eligible to receive these upgrades at no out-of-pocket cost.


Conclusion
NEEP will continue to monitor state progress as they roll out their rebate programs. Tracking their progress will be essential for ensuring they deliver meaningful, measurable benefits for households and local economies. NEEP will continue to offer technical assistance to help state and community staff, program implementers, contractors, and other stakeholders identify opportunities and advancements available with these funds.

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