New York Secures First US Rebates for Energy-Efficient Appliances - Hindustan Times

New York Secures First US Rebates for Energy-Efficient Appliances

Bloomberg |
Apr 18, 2024 09:28 PM IST

The Department of Energy approved New York’s program for distributing Inflation Reduction Act rebates, and is reviewing applications from 11 other states.  

New Yorkers this summer are set to receive the first federal Inflation Reduction Act rebates for heat pumps and other climate-friendly appliances, the US Department of Energy announced on Thursday.

New York Secures First US Rebates for Energy-Efficient Appliances
New York Secures First US Rebates for Energy-Efficient Appliances

Nearly two years after President Joe Biden signed the IRA into law, New York is the first state to obtain federal approval for its program to distribute generous rebates for home electrification. The DOE awarded New York $158 million for rebates for high-efficiency heat pumps, heat pump water heaters, heat pump clothes dryers, induction stoves and electrical upgrades. Low and moderate-income households with earnings under 150% of their area’s median annual income are eligible for up to $14,000 in rebates.

New York will later submit an application for a separate program to distribute incentives for home energy efficiency improvements. The IRA allocates a total of $8.8 billion for both programs to be divided among states and territories.

The Energy Department also said Thursday that another 11 states have filed applications to distribute IRA funding tied to energy-efficient appliances: Arizona, California, Colorado, Georgia, Hawaii, Indiana, Minnesota, New Hampshire, New Mexico, Oregon, and Washington. If states decline to participate, their IRA funding will be reallocated to other states.

The federal government has said it expects to review and approve applications within 60 to 90 days. Four states — California, Hawaii, New Mexico and New York — filed their applications between December and February.

The rebates for replacing fossil fuel appliances are substantial. Up to $8,000 is available for a heat pump, which could cover a third to half of the cost of a system, depending on its size. The IRA offers a $1,750 rebate for a heat pump water heater and $840 for an induction stove or a heat pump clothes dryer. If you need an electrical panel upgrade before installing heat pumps or induction stoves, a $4,000 rebate cuts the cost.

The programs are required to issue rebates at the point of sale — say, in a big-box store. Some states have said they will allow residents to submit proof of income online prior to making a purchase. In other instances, residents whose incomes are already verified through participation in state and federal programs for low-income households will be deemed automatically eligible.

Read Next: New York’s First Electric Skyscraper Promises Luxury With Lower Emissions

This article was generated from an automated news agency feed without modifications to text.

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