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New York becomes first state approved for fed funding of 'Home Energy Rebates' program

A federally-funded program in New York will provide homeowners with rebates for energy efficient home upgrades, like heat pumps.
Rebecca Redelmeier / WSKG News
A federally-funded program in New York will provide homeowners with rebates for energy-efficient home upgrades, like heat pumps.

New York has become the first state in the country to receive a new kind of federal funding to help residents pay for energy-efficient home upgrades.

The U.S. Department of Energy announced Thursday that the state will receive an initial $158 million to implement a rebate program to help families save money on energy-efficient electric appliances.

The funding comes from the federal Inflation Reduction Act’s Home Energy Rebates program, a cornerstone of President Joe Biden’s investment in climate and energy.

New York households could save up to $14,000 on home upgrades, including potential savings on heat pumps, electrical panels and insulation. At least half of the rebates will go to low-income households.

"New York is setting the pace in the transition to modern, affordable, and efficient homes,” said Governor Kathy Hochul in an announcement about the investment. “With this Inflation Reduction Act funding, we continue the transition to an affordable clean energy future that benefits all New Yorkers.”

The program is expected to launch over the summer, initially to low-income homeowners.

The approval of New York’s application comes amid concern over a downtrend of clean-energy appliance installations and criticism over the slow launch of the IRA’s rebate program. More than 60 House Democrats, including several from New York, wrote a letter to the DOE last year urging the agency to speed up the rollout of the rebate program.

Eleven other states have applied for funding through the same program.