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Arizona launches $14,000 rebate program for home upgrades: 'It was like I hit the jackpot'

Upgrading your home's efficiency is one of the most effective ways to reduce rising energy costs.

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Arizona homeowners have reason to celebrate, as rebates for energy-saving appliances are now available.

As reported by Hoodline, the Efficiency Arizona program was created to help residents improve their homes with highly efficient upgrades, such as heat pump appliances, wiring upgrades, and increased insulation.

The program offers eligible homeowners up to $14,000 in rebates to pay for a percentage of their home renovations, the outlet noted. According to officials, only 800 rebates have been issued in the state thus far. 

Upgrading your home's efficiency is one of the most effective ways to reduce rising energy costs. Even appliances you might not think about often — like your water heater — can quietly drive up annual bills.

In fact, water heating can account for nearly 20% of a home's energy use, and replacing an outdated gas or electric resistance unit with a modern heat pump can be two to three times more efficient.

Fortunately for Arizona residents, this rebate program is making smart home upgrades more accessible. According to Hoodline, homeowners looking to renovate may be able to get up to $8,000 for a heat pump, $4,000 for an electric panel upgrade, $1,750 for a heat pump water heater, and $1,600 for insulation.

Rebate eligibility is based on household income, with low-income residents potentially qualifying for full cost coverage and moderate-income households receiving up to 50% off. Contractors are meanwhile warning that once word spreads about these incentives, demand could quickly outpace the number of available installers.

While not all states offer these rebates, homeowners everywhere may be able to start cutting costs by switching to modern appliances.

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One great place to begin could be with a new water heater. Companies like Cala offer smart heat pump models that use advanced software to learn a household's habits and heat water only when needed, helping lower utility costs.

According to the company's estimates, homeowners who swap an old unit for an advanced Cala model can save up to $767 a year

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While the rollout of the Efficiency Arizona program has been stop-and-go due to pauses caused by uncertainty over federal grant regulations, some homeowners have already seen the benefits of modernizing their home appliances through the rebates. 

Julia Merritt, a program participant from the Tucson area, said her electric bills fell by roughly 40% after the upgrades. "It was like I hit the jackpot," she told Arizona's Family in mid-March.

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