High-Efficiency Electric Home Rebate Act (HEEHRA)
Formerly known as the Zero-Emission Homes Act (ZEHA)
The High-Efficiency Electric Home Rebate Act (HEEHRA) provides point-of-sale consumer rebates to enable low- and moderate-income households across America to electrify their homes. HEEHRA will help American families save money on their monthly energy bills, create healthier indoor air environments, and reduce their carbon emissions.
HEEHRA is a voluntary program that covers 100 percent of electrification project costs (up to $14,000) for low-income households and 50 percent of costs (up to $14,000) for moderate-income households. Qualified electrification projects include heat pump HVAC systems, heat pump water heaters, electric stoves and cooktops, heat pump clothes dryers, and enabling measures such as upgrading circuit panels, insulation, air sealing, ventilation, and wiring. Project costs will cover both purchase and installation costs. And, notably, these point-of-sale rebates will act as off-the-top discounts when a household makes the purchase.
This historic legislation was included in the Inflation Reduction Act (IRA) of 2022. The original Senate bill — the Zero-Emission Homes Act (ZEHA) of 2021 — was introduced by Senator Heinrich (D-NM), and its House companion was introduced by Representatives Tonko (D-NY) and Castor (D-FL).
For more information, see our overview of the IRA’s climate provisions, our breakdown of the IRA’s investments in disadvantaged communities, and our report on the benefits of electrification.
Highlights
The High-Efficiency Electric Home Rebate Act (HEEHRA) is a 10-year rebate program to support low- and moderate-income (LMI) households who choose to electrify. Specifically, HEEHRA:
- Designates $4.275 billion in rebate funding to be distributed by State Energy Offices and $225 million to be distributed by Tribal Governments;
- Establishes point-of-sale consumer rebates for “qualified electrification projects” (see chart), up to $14,000 per household;
- Covers 100 percent of electrification project costs for low-income households and 50 percent of costs for moderate-income households;
- Extends rebates to multifamily buildings in which 50 percent of residents are LMI; and
- Incentivizes contractors to perform electrification projects in LMI communities.
Benefits
Almost all households get cheaper energy bills
At least 85% of households in the United States — 103 million — could save $37.3 billion a year on energy bills if they were using modern, electrified furnaces and water heaters instead of their current machines.
Most households would save an average of $496 per year
The savings are biggest for the 64.9 million households in the United States across every county who are currently using electric resistance, fuel oil, or propane and would save $496 per year on average.
Meaningful savings for low- and moderate-income (LMI) households
Of the households that save, 44% are low- and moderate income. Each year, they would save an average of $377. Many would save up to $493 per year on average.
It’s essential to reaching zero emissions
Furnaces, water heaters, dryers, and stoves account for at least 95% of residential building emissions but are replaced just once every 10-25 years. Unless we choose modern, electrified replacements for these machines, we will continue to need dirty infrastructure to power our homes, never getting to zero emissions.
Hundreds of thousands of new jobs will be created
Electrification would create 462,430 installation jobs in the United States. In addition, it would further generate 80,000 manufacturing jobs and 800,000 indirect and induced jobs.
Cleaner indoor and outdoor air
Electrifying these appliances would address the 42% increased risk of children experiencing asthma symptoms associated with gas stove use. Such indoor pollution disproportionately affects low-income households with smaller homes. Furthermore, outdoor air pollution from residential buildings currently accounts for 15,500 premature deaths in the United States per year.
Media Coverage
- Wall Street Journal
Katy Stech Ferek
Aug 17, 2022
Makers of Heating, Cooling Systems Expect Climate Bill to Boost Sales
"Anticipating an increase in sales, Mark Kuntz, chief executive of Mitsubishi Electric Trane HVAC US Inc., which makes high-efficiency heat pumps, said the company plans to announce the location of a new 2,000-worker factory by the end of the year on expectations of higher sales. “We think it’s going to change the mind-set of the U.S. consumer,” he said of the bill, called the Inflation Reduction Act."
- NPR
Laura Benshoff
Aug 13, 2022
3 ways the Inflation Reduction Act would pay you to help fight climate change
"Money in the Inflation Reduction Act would make it cheaper for Americans to curb their own climate-warming emissions. . . . Down the road, the bill would also set aside more than $8 billion for two rebate programs, aimed at lower- and middle-income households. One would incentivize replacing old appliances with new energy efficient ones, as well as the home upgrades necessary to support them; and another to cut down on energy wasted at home."
- Canary Media
Jeff St. John
Aug 4, 2022
Climate bill could spur ‘market transformation’ in home electrification
"Based on today’s average prices for heat pumps, these rebates could be expected to cover the full cost of installation for low-income households, according to Lowell Ungar, head of the federal policy program at the American Council for an Energy-Efficient Economy (ACEEE). Moderate-income households could add tax credits to rebates to cover about two-thirds of their total costs, he estimated in an email.
"Utility-bill savings from such upgrades would vary depending on a number of factors. But electric appliances “have already leapfrogged their fossil-fuel competitors on efficiency and performance,” U.S. Senator Martin Heinrich, the New Mexico Democrat who sponsored the HEEHRA legislation in the Senate, noted."
- Yahoo! Finance
Akiko Fujita
Aug 2, 2022
Inflation Reduction Act would lead to $1,800 in savings for average household, analysis finds
"A program dubbed the High Efficiency Electric Home Rebate Act (HEERA) sets aside $4.5 billion in direct rebates for low- and moderate-income households that install new, efficient electric appliances. Under the proposed rebate framework, a low-income household would receive a rebate of up to $8,000 for a new heat pump, $840 for an electric stove or electric dryer, and $2,500 for updated electrical wiring, among other rebates. Matusiak said those incentives will enable 1 million households to go electric."
- Politico
Matthew Choi
Jul 1, 2021
"Sen. Martin Heinrich (D-N.M.) unveiled an outline for a new bill Wednesday that would help consumers buy electric appliances and equipment to cut down on household emissions. The Zero-Emission Homes Act of 2021 would offer rebates to buy and install electric appliances at prices competitive with fossil fuel-based alternatives."
Press Releases
- Senator Martin Heinrich
Aug 7, 2022
Heinrich Passes Game-Changing Electrification Provisions In Historic Inflation Reduction Act
"The clean energy and electrification investments that we secured in the Inflation Reduction Act represent by far the most significant steps that Congress has ever taken to spur the widespread deployment of highly-efficient, fully electric and climate pollution free technologies.
"I'm pleased to lead the charge to establish a new rebate program that mirrors my Zero-Emission Homes Act to help families with the upfront costs of installing clean and efficient electric home appliances.
"Because these electric technologies are more efficient and less expensive to operate, they will also help families across the country realize significant savings on their energy bills. This is particularly important at a time when so many Americans have been experiencing the pinch from inflation at the gas pump and in their gas and utility bills. We have moved mountains in the last year, and we are on the verge of getting something very deeply meaningful to the President’s desk."
- House Select Committee on the Climate Crisis
July 30, 2021
Castor, Tonko Introduce Legislation to Electrify Households, Create Jobs & Lower Energy Bills
"Electrification of household appliances would help millions of families save money on their energy bills every month, while creating over a million new jobs in manufacturing, installing, and servicing these new electric appliances."
- Sen. Martin Heinrich
July 15, 2021
"Electrifying our homes and businesses is one of the surest climate actions that we can take right now. We can use already existing, proven technologies to dramatically reduce carbon pollution, create millions of good-paying jobs, and secure a more equitable future for our communities."
- Rewiring America
June 30, 2021
New Report Shows Electrifying Homes Key U.S. Climate Goals, and Most Americans Will Benefit
"The Zero-Emission Homes Act of 2021 would provide rebates for the purchase and installation of electric appliances and equipment in single-family homes and multifamily dwellings, with additional support for low- and moderate- income households, who spend a larger share of their income on energy than other households."
U.S. Senate
- Sen. Martin Heinrich
D-New Mexicosponsor
- Sen. Michael Bennet
D-Coloradoco-sponsor
- Sen. Richard Blumenthal
D-Connecticutco-sponsor
- Sen. Cory Booker
D-New Jerseyco-sponsor
- Sen. Kirsten Gillibrand
D-New Yorkco-sponsor
- Sen. John Hickenlooper
D-Coloradoco-sponsor
- Sen. Ben Ray Luján
D-New Mexicoco-sponsor
- Sen. Ed Markey
D-Massachusettsco-sponsor
- Sen. Chris Murphy
D-Connecticutco-sponsor
U.S. House
- Rep. Kathy Castor
D-FL-14sponsor
- Rep. Paul Tonko
D-NY-20sponsor
- Rep. Nanette Barragan
D-CA-44co-sponsor
- Rep. Earl Blumenauer
D-OR-03co-sponsor
- Rep. Lisa Blunt Rochester
D-DE-01co-sponsor
- Rep. Suzanne Bonamici
D-OR-01co-sponsor
- Rep. Julia Brownley
D-CA-26co-sponsor
- Rep. Sean Casten
D-IL-06co-sponsor
- Rep. Emanuel Cleaver
D-MO-5co-sponsor
Quotes
- Sen. Martin Heinrich
D-New Mexico
“Electrifying our homes and businesses is one of the surest climate actions that we can take right now. We can use already existing, proven technologies to dramatically reduce carbon pollution, create millions of good-paying jobs, and secure a more equitable future for our communities. The goal of ZEHA is to make the economic, environmental, and health benefits of electrification affordable and accessible to all Americans.”
- Rep. Paul Tonko
D-New York
"Decarbonizing our homes is one of the key challenges we will face in confronting the climate crisis. But building electrification also offers untapped opportunities to improve energy efficiency, spur innovation and provide homeowners with cleaner alternatives."
- Rep. Kathy Castor
D-Florida
"All Americans deserve to live in homes that are good for their health, their pocketbooks, and the environment. This bill will help millions of families switch to cleaner electric appliances and save money on their utility bills, while also putting Americans to work in every hometown across the country."
- Sen. Richard Blumenthal
D-Connecticut
"By incentivizing the purchase of clean electric appliances and shifting away from ones that pollute, the Zero Emissions Home Act will create jobs and put us on a smarter, sustainable path for the future.”
- Sen. Sheldon Whitehouse
D-Rhode Island
"This is something we can do right now to reduce our carbon footprint and get new, high-functioning appliances into homes.”
Organizations
- Evergreen Action
Sam Ricketts, Co-Founder
"The Zero-Emission Homes Act announced today by Senator Heinrich (NM) makes an essential investment in our nation’s clean building infrastructure. Clean buildings that are carbon-free, affordable, and climate-ready are essential infrastructure and are a matter of survival for millions of Americans."
- RMI
Mark Kresowik, Federal Policy Manager
“Senator Heinrich’s proposal recognizes that the buildings where we live and work, and the appliances we use, are critical infrastructure that our nation must invest in to avoid the worst impacts of climate disruption and create healthier, safer, and more affordable homes and businesses."
- Sunrun
Lynn Jurich, CEO
"The Zero-Emission Homes Act will turbocharge our efforts to decarbonize millions of homes across America – and will help create millions of good-paying jobs as we electrify everything to fight climate change. Sunrun commends Senator Heinrich for his pioneering and steadfast leadership on the clean energy transition."
- Rewiring America
Ari Matusiak, CEO
"The climate part of the national infrastructure debate just got a lot more relevant to American families...The widespread job creation and the savings on utility bills that 85 percent of American households would immediately see are a potent political argument for this bill."