HOMES vs HEAR — Know the Difference
The IRA created two separate home efficiency rebate programs. HEAR targets specific appliances for income-qualified households. HOMES targets whole-home performance for everyone. The programs are designed to complement each other — you can use HEAR rebates to install individual upgrades and HOMES to recognize the aggregate energy savings they produce.
HEAR Program
Appliance-Specific Rebates
–Income-qualified only (below 150% AMI)
–Up to $8,000 for heat pump
–Up to $1,750 for water heater
–Up to $1,600 for insulation
–Applied at point of installation
–State-administered
HOMES Program
Whole-Home Performance
✓ALL income levels qualify
✓Up to $8,000 based on % energy savings
✓2x rebate for low-income households
✓Requires energy modeling verification
✓Performance-based — any measure counts
✓State-administered
HOMES Rebate Tiers
Low-income = below 80% AMI. Moderate-income = 80–150% AMI (same as standard rebate). Above 150% AMI = standard rebate.
| Energy Savings Achieved | Standard Rebate | Low-Income Rebate | Example Project |
|---|
| 20–34% energy savings | Up to $2,000 | Up to $4,000 | Air sealing + attic insulation + smart thermostat |
| 35–49% energy savings | Up to $4,000 | Up to $8,000 | Full weatherization + heat pump installation |
| 50%+ energy savings | Up to $8,000 | Up to $16,000* | Deep energy retrofit: envelope + HVAC + water heating |
*$16,000 cap for low-income is per IRA statute. Actual state program caps may vary. Confirm with your state HOMES administrator.
FAQ — HOMES Rebate Program
Do I need an energy audit to qualify for HOMES?
Yes — HOMES requires either modeled energy savings (using DOE-approved software like REM/Rate or EnergyPlus run by a certified energy modeler before and after the project) or measured energy savings (comparing 12 months of actual energy bills before and after). The modeled path is more common and allows you to get the rebate at project completion rather than waiting a full year for measured results.
Can HOMES and HEAR be combined on the same project?
Yes — they are designed to be complementary. Example: install a heat pump (HEAR rebate up to $8,000) + add insulation and air sealing (HEAR up to $1,600) + the combined project achieves 40% whole-home energy savings (HOMES rebate up to $4,000). You could receive HEAR + HOMES on the same project, as long as the same cost isn't double-counted.
What counts as "energy savings" for HOMES?
HOMES measures savings relative to your home's baseline energy consumption — typically the 12-month period before the project. The savings percentage must be verified through energy modeling or actual bill measurement. Both heating/cooling energy (site energy) and total energy use count. A certified energy auditor or HERS rater can determine whether your planned project will hit the required threshold before you commit.
Is HOMES available for rental properties?
HOMES is designed primarily for owner-occupied single-family homes. Some states extend eligibility to small multifamily buildings (2–4 units) and rental properties, particularly for landlords making improvements that benefit low-income tenants. Check with your state HOMES administrator for multifamily and rental eligibility in your state.
This guide is for educational purposes only. HOMES program availability and rebate amounts vary by state and change frequently. Always verify with your state energy office before starting a project. Data verified July 2026.