Although federal clean energy incentives are on the chopping block thanks to President Trump’s budget bill (H.R.1), the good news is that state rebates for home energy efficiency upgrades remain available.
Two of the signature programs created by the Inflation Reduction Act in 2022 were the home energy rebate programs, which fund state agencies to provide major financial incentives for people to improve the energy efficiency of their homes through measures like adding insulation, sealing up air leaks, and replacing old, inefficient appliances.
While H.R.1 is eliminating residential tax credits for these kinds of measures, it does not affect these state rebate programs. Residents of North Carolina and Georgia can already take advantage of their state rebate programs, while the Tennessee, Florida, and South Carolina programs are still in the process of launching.
In Florida, home energy rebate programs are expected to launch later this year, and South Carolina’s home energy rebate programs are expected to launch in 2026. Contractors, advocates, and South Carolina residents can weigh in on the anticipated program using the South Carolina Energy Office’s Stakeholder Engagement Form.
In general, each state has (or will have) two programs: one for doing work that lowers the home’s energy requirements, and another for replacing old, inefficient appliances, especially gas appliances, with efficient electric appliances. While these two programs are standardized across states by the language in the Inflation Reduction Act, each state has some leeway in the amount of rebate it provides and in choosing which types of retrofits to offer rebates for. Residents can technically utilize both programs, but no single retrofit measure can double dip between both rebate programs (i.e., if you claim an appliance rebate for installing a heat pump water heater, you can’t count the energy savings from the new water heater towards the energy efficiency rebate program too). In general, the rebate programs will run until September 2031 or until all funds are exhausted.
Georgia Home Energy Rebates
Georgia offers two main rebate programs — Home Efficiency Rebates (HER) and Home Electrification and Appliance Rebates (HEAR) — administered through program-approved contractors. Total savings can reach thousands and thousands of dollars per household, depending on income and energy savings.
- Home Efficiency Rebates (HER)
- Who’s eligible?
- Structure
- Household income < 80% AMI: Rebates cover up to 98% of project cost with a cap at $16,000
- Household income ≥ 80% AMI: Rebates cover up to 50% of project costs with a cap at $4,000
- Contact a program-approved contractor for a home energy assessment to get started. Your contractor will install upgrades and submit the appropriate paperwork.
- Home Electrification and Appliance Rebates (HEAR)
- Who qualifies?
- Households with income <150% AMI
- Rebate tiers
- Household income <80% AMI: Up to 100% of project cost
- Household income 80-150% AMI: Up to 50% of project cost
- Eligible upgrades
- Heat pump water heater: up to $1,750 rebate
- Heat pump for heating/cooling: up to $8,000 rebate
- Electric stove/cooktop/range/oven: up to $840 rebate
- Heat pump dryer: up to $840 rebate
- Electrical panel: up to $4,000 rebate
- Insulation, air sealing, and ventilation: up to $1,600 rebate
- Electrical wiring: up to $2,500 rebate
- Total household HEAR rebate cap: $14,000
- Who qualifies?
HEAR upgrades are designed to encourage people to switch to more efficient electric appliances; therefore, they cannot be used for replacing one electric appliance with another. In general, they must be either for first-time electrification, replacing non-electric appliances, installed in new construction, or replacing less efficient resistance heating appliances. See qualification details here. DIY rebates may be available for kitchen appliances via the HEAR DIY Pathway.
Applicants for both programs must provide proof of primary residence in Georgia and income verification. A GEFA-approved contractor must install all contractor-led projects.
North Carolina Home Energy Rebates
North Carolina launched Energy Saver North Carolina in January 2025, offering federally funded rebate programs under the Inflation Reduction Act. Two main programs are included: Homeowner Managing Efficiency Savings (HOMES) for whole-home upgrades, and Home Electrification & Appliance Rebate (HEAR) for individual appliance and system upgrades.
Energy Saver North Carolina began in disadvantaged communities with a higher energy burden and has since gradually expanded across the state. Reference the Energy Saver NC County Expansion Phases Map located on the Energy Saver home page to see availability in your county.
- Eligibility Program eligibility is limited to households making 150% of the area median income (AMI) or less
- Households making ≤80% AMI: Rebate covers up to 100% of project costs
- Households making 80%-150% AMI: Covers up to 50% of project costs
- Households making >150% AMI: Not eligible
- Home Electrification and Appliance Rebates (HEAR) Program
- Households under 150% AMI can receive rebates on new energy-saving systems. Self-installation is not allowed, and a program-registered contractor is required
- Eligible upgrades
- Heat pump water heater: up to $1,750 rebate
- Heat pump for heating/cooling: up to $8,000 rebate
- Electric stove/cooktop/range/oven: up to $840 rebate
- Heat pump dryer: up to $840 rebate
- Electrical panel: up to $4,000 rebate
- Insulation, air sealing, and ventilation: up to $1,600 rebate
- Electrical wiring: up to $2,500 rebate
- Total household HEAR rebate cap: $14,000
- Homeowner Managing Efficiency Savings (HOMES) Program
- For whole-home upgrades, participants can receive rebates for comprehensive energy efficiency improvements up to $16,000 per dwelling
- Examples of eligible upgrades
- HVAC upgrades
- Insulation, sealing, and air barrier upgrades
- Mechanical ventilation systems
- Retroactive coverage is possible for work started on or after August 16, 2022
All projects under HEAR and HOMES must be installed by registered contractors on the Registered Contractor Finder. Renters require landlord approval. For owners of multifamily homes, more than 50% of tenants must meet income qualifications.
Combining Home Energy Rebates with Other Incentives
Don’t forget about other incentives for home energy upgrades that are also available. Many utility companies offer rebates for home energy upgrades that can be used alongside the Inflation Reduction Act home energy rebate programs, and so can residential tax credits for home energy efficiency improvements (until H.R. 1 takes them away early at the end of the year).
Act Now
Several state programs, including those in North Carolina and Georgia, are already active, and some even offer retroactive rebates for projects initiated as far back as 2022. The combination of federal and state incentives could cover up to 100% of costs for low- and moderate-income households. Get started today to make your home more comfortable and lower your energy bills with home energy improvements!
If you’ve been considering an energy upgrade — whether it’s installing an induction cooktop or an entire solar system — don’t wait. H.R.1 has shown that the opportunity to save money while contributing to a cleaner future won’t last forever. Check your eligibility, connect with an approved contractor, and make your move while incentives are still available.
