Roughly $4.5 billion in federal rebates that incentivizes U.S. homeowners to make energy efficient upgrades may be on its way out. 

According to a report by ACHR News, the Home Electrification and Appliance Rebates Program, also known as HEAR, is facing new pressure after House lawmakers approved a bill in early February that would repeal the major program. Now the bill must be approved by the Senate to move forward. The incentives were initially part of the Inflation Reduction Act. 

HEAR, a program that offers rebates to low- and moderate-income homeowners for electric appliances like heat pumps and induction stoves, has already faced setbacks. In 2025, the U.S. Department of Energy paused the funding along with a similar program called Home Owner Managing Energy Savings Act, according to Utility Dive.

Although upgrading your heating and cooling system is one of the most reliable ways to lower your annual utility bills, the upfront cost can still be a major barrier for some homeowners. The HEAR program helped homeowners reduce those costs for energy-efficient upgrades by offering generous incentives, such as $8,000 for qualifying heat pump installations. 

According to Matt Jachman of ACHR News, "the loss of HEAR would be a blow to HVAC manufacturers and contractors." However, with 12 states and the District of Columbia having already launched rebate programs with the $4.5 billion in HEAR funding, there are still ways to save while upgrading.  

Plus, many local governments and utilities offer incentives to upgrade to more efficient appliances. If you're curious about how much you can save by switching your outdated HVAC to a modern heat pump, connect with EnergySage to find the best option for your home. 

Francis Dietz, vice president of public affairs at the Air-Conditioning, Heating, and Refrigeration Institute, shared his thoughts on the paused incentive program:

"Over the past several years, many of our members and our industry partners have worked diligently with state energy offices to get those rebate programs off the ground," Dietz said, per ACHR News. "We are generally supportive of programs that make our members' equipment more affordable for consumers." 

Smart upgrades that slash monthly bills

Even with more limited incentives, a modern heat pump can still generate enough savings on your energy bills to pay for itself over its lifetime in most situations.

If you're looking to modernize your home's appliances, EnergySage can help you find efficient heating and cooling solutions for your home and connect you with trusted installers. 

Not ready to spend up front? Palmetto's $0-down HVAC leasing program can lower your energy costs by up to 50%.

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If HVAC leasing sounds like a good fit for you, Palmetto Comfort Plans start as low as $99 per month and offer 12 years of free maintenance. 

To fully maximize your savings, pairing electric appliances like a heat pump with solar panels could be a good choice. EnergySage makes it easy to understand your solar options based on your home and budget, and its experts can even help you save up to $10,000 on installation and purchase costs. 

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