Department of Energy Approves Plan for New York to Access Inflation Reduction Act Funding to Support Energy Efficiency and Clean Energy Upgrades

April 18, 2024

Governor Kathy Hochul today announced the approval of New York’s partial-scope application for the United States Department of Energy’s Home Electrification and Appliance Rebates Program formula grant funding. This approval builds on New York State’s commitment to improve low-income families' homes with the latest efficiency and clean energy upgrades that will make them more comfortable and reduce energy costs. Today's announcement supports the State’s nation-leading Climate Leadership and Community Protection Act goal to reduce greenhouse gas emissions by 85% by 2050 and advances Governor Hochul’s goal to achieve two million climate-friendly homes by 2030.

"New York is setting the pace in the transition to modern, affordable, and efficient homes. With this Inflation Reduction Act funding, we continue the transition to an affordable clean energy future that benefits all New Yorkers," Governor Hochul said. "We thank President Biden, Secretary Granholm and the New York Congressional Delegation for their support and are proud to partner with the Department of Energy to lead on this historic opportunity and build a healthier future for all New Yorkers.”

The application submitted by New York State Energy Research and Development Authority (NYSERDA) to United State Department of Energy (DOE) requested $39.6 million in initial funding, which will allow NYSERDA’s low income EmPower+ program to provide additional energy efficiency and beneficial electrification improvements, expanding its current reach. New York State is eligible to receive a total of $317.7 million through the DOE’s IRA Home Energy Rebate programs: $159.3 million for the Home Efficiency Rebates and $158.4 million for HEAR program.

Eligible owners of one to four family homes will be able to receive significant discounts, up to 100 percent of total project cost, for insulation and air sealing, heat pumps for space and water heating, and any necessary electrical upgrades to support those improvements. This application represents the first step in receiving Inflation Reduction Act (IRA) funding for the full portfolio of IRA Home Energy Rebate programs Link opens in new window - close new window to return to this page.. NYSERDA is planning to launch expanded IRA Home Energy Rebate program offers later this year after the full scope application has been submitted and approved by DOE.

NYSERDA is currently working towards developing and submitting the full HEAR application to enable rebate offers to moderate-income residents and to owners of larger low and moderate-income multifamily buildings, including high-efficiency appliance rebates.

Additionally, to utilize the full federal funding available for New York State, NYSERDA will be applying to the Home Efficiency Rebates program, which will further expand residents’ access to upgrades for heat pumps and other clean, low carbon technologies.

Senate Majority Leader Charles Schumer said, “The bold and impactful Home Electrification and Appliance Rebates program, created by the historic Inflation Reduction Act, is a win-win-win that will save consumers money on energy bills, reduce pollution causing climate change, and advance environmental justice. This $158 million in federal funding will help low-income New Yorkers save on energy bills and reduce pollution by replacing dirty, inefficient appliances with modern energy units. The Home Electrification and Appliance Rebates program is another great example of the deeply impactful policies imbedded at the heart of the Inflation Reduction Act to reduce emissions while promoting environmental justice and spurring more investment in cleaner technologies. I am proud to deliver this funding and will continue fighting to lower pollution and save costs to lead New York to a healthier future.”

Representative Nydia M. Velázquez said, “The Home Electrification and Appliance Rebates program will not only help fight climate change and usher in more climate justice for our communities but will also lower costs of working families across the state. This funding will help make New York households more energy efficient and provide substantial cost savings, and I am excited to see the positive impact of this program on my district. I was proud to support the creation of this program through the Inflation Reduction Act, and I thank President Biden and Governor Hochul for making this possible.”

Representative Paul Tonko said, “I helped champion these programs in the Inflation Reduction Act because we know rebates can be powerful tools to enable people to improve their homes and upgrade their appliances, bringing major savings to New Yorkers’ energy bills. I am so proud that New York will continue to lead the nation into a cleaner, more affordable energy future, and I look forward to supporting the state’s efforts to make these funds available to New Yorkers as quickly as possible.”

Representative Joe Morelle said, “Too many families have felt the pressure of rising costs. From healthcare to prescription drugs to heating and cooling their homes, people have been forced to cut corners to make ends meet. With the support of federal funds I secured as a part of the Inflation Reduction Act, this new Department of Energy program will help ensure people’s homes are updated with energy-saving and cost-saving technologies, all at a reduced cost. I’m grateful to Governor Hochul for her leadership, and I look forward to more opportunities to work together and uplift families in Monroe County and across New York State.”

Representative Pat Ryan said, “No family should have to choose between paying for groceries and keeping their homes warm in the winter. This direct relief from the Inflation Reduction Act will be a game-changer for families across the Hudson Valley. I’ll keep fighting to bring these investments right here to the Hudson Valley to help relieve the pressure on hard-working families today, build the value of their homes for the future, and create a cleaner environment for generations to come.”

Congressman Dan Goldman said, "As we transition into a cleaner, greener economy, it is vital that no one – regardless of their circumstance – is left behind. Through President Biden and House Democrats' Inflation Reduction Act, we can finally ensure that everyone has access to the energy and efficiency upgrades that have revolutionized our nation's green infrastructure. I'm proud that under Governor Kathy Hochul's leadership, New York will be the first in the nation to roll out these rebates, allowing low-income families across the state to participate in our nation's green transition."

NYSERDA President and CEO Doreen M. Harris said, “We are thrilled to be able to expand NYSERDA’s successful EmPower+ program for low-income residents with the approval of New York’s Home Energy Electrification and Appliance Rebate application. Under the State’s Climate Act, we have committed to ensuring that all New Yorkers benefit from clean energy investments, and this is an important first step towards empowering our most vulnerable population to make essential energy efficiency improvements that make their home safer and more comfortable to live in.”

Building Performance Contractors Association of NYS President Hal Smith said, “The BPCA of NYS is very excited to be able to get started on this great program. This is great news for all contractors that are making energy efficient improvements for low income New Yorkers. This will allow us to do a lot more toward the goal of climate friendly homes.”

New York State Policy Director for Rewiring America Director Michael Hernandez said, “New York should be applauded for being first in the nation to establish a Home Electrification and Appliance Rebates program made possible by the landmark Inflation Reduction Act. This historic investment will help lower energy bills and create healthier, more comfortable homes for those who need it most and ensure that all New Yorkers, regardless of income, have the opportunity to reap the benefits of high-performance, energy-saving appliances.”

New York Director of the Building Decarbonization Coalition Lisa Dix said, “The Building Decarbonization Coalition congratulates New York on being the first state to have their Home Electrification and Appliance Rebate application approved from the Department of Energy. This funding will help New York families access funds to retrofit their homes and install heat pumps, reducing energy costs and energy burdens especially for low and moderate income New Yorkers. BDC is committed to working with Governor Hochul's administration and market actors who stand ready to help grow the heat pump marketplace in New York.”

Buildings are the most significant sources of greenhouse gas emissions in New York State and through NYSERDA and utility programs, over $6.8 billion is being invested to decarbonize buildings. By improving energy efficiency in buildings and advancing statewide installations of onsite storage, renewables and electric vehicle charging equipment, the State will reduce its carbon pollution and advance toward the ambitious target of reducing on-site energy consumption by 185 TBtu by 2025, the equivalent of powering 1.8 million homes.

New York State's Nation-Leading Climate Plan

New York State's climate agenda calls for an orderly and just transition that creates family-sustaining jobs, continues to foster a green economy across all sectors and ensures that at least 35%, with a goal of 40%, of the benefits of clean energy investments are directed to disadvantaged communities. Guided by some of the nation’s most aggressive climate and clean energy initiatives, New York is advancing a suite of efforts – including the New York Cap-and-Invest program (NYCI) and other complementary policies – to reduce greenhouse gas emissions 40% by 2030 and 85% by 2050 from 1990 levels. New York is also on a path to achieving a zero-emission electricity sector by 2040, including 70% renewable energy generation by 2030, and economy-wide carbon neutrality by mid-century. A cornerstone of this transition is New York's unprecedented clean energy investments, including more than $40 billion in 64 large-scale renewable and transmission projects across the State, $6.8 billion to reduce building emissions, $3.3 billion to scale up solar, nearly $3 billion for clean transportation initiatives and over $2 billion in NY Green Bank commitments. These and other investments are supporting more than 170,000 jobs in New York’s clean energy sector as of 2022 and over 3,000% growth in the distributed solar sector since 2011. To reduce greenhouse gas emissions and improve air quality, New York also adopted zero-emission vehicle regulations, including requiring all new passenger cars and light-duty trucks sold in the State be zero emission by 2035. Partnerships are continuing to advance New York’s climate action with more than 400 registered and more than 130 certified Climate Smart Communities, nearly 500 Clean Energy Communities, and the State’s largest community air monitoring initiative in 10 disadvantaged communities across the State to help target air pollution and combat climate change.