Federal Home Energy Rebate Programs Move Forward Under Revised Rules
The U.S. Department of Energy has released revised guidance for the federal Home Energy Rebate programs, allowing states to move forward after significant delays and uncertainty. The programs are now formally called Home Owner Managing Energy Savings (HOMES), formerly HER, and High-Efficiency Electric Home Rebates (HEEHR), commonly known as HEAR.
The most consequential change is a new restriction on fuel switching under HEEHR. Rebates may generally support electric-to-electric equipment replacements or electric equipment in new construction, but not the replacement of natural gas, propane, or oil equipment with electric appliances. Homes must also be adequately insulated and air-sealed before receiving HEEHR rebates for heating and cooling equipment.
BEL believes the fuel-switching restriction may unnecessarily limit consumer options. In areas dependent on propane, BEL has encountered households that discontinued unaffordable propane service and relied on uncomfortable and inefficient electric resistance heating. Such households may qualify to replace the electric resistance equipment, while similar neighbors who maintained propane service may face fewer options. Nevertheless, many valuable projects remain possible without prohibited fuel switching. DOE expressly allows homes to retain existing fossil-fuel heating systems when installing an eligible heat pump. This can support dual-fuel approaches that replace existing electric resistance equipment with an efficient heat pump while preserving propane or another delivered-fuel system for backup during extremely cold weather. Eligibility will depend on the household’s existing equipment and applicable state rules. Review DOE’s HEEHR guidance.
Other changes should help streamline delivery. DOE made several implementation plans optional, eliminated certain inspection, commissioning, survey, and geotagged-photo requirements, and made ENERGY STAR certification optional under HOMES. States may also cover warranties, accessories, taxes and, in certain locations, shipping and contractor travel. Expanded retail, online, mail-in, and do-it-yourself pathways may make some HEEHR rebates easier to access. Review DOE’s HOMES guidance.
BEL has been engaged with the rebate programs since their inception, informing electric cooperatives and municipal utilities about opportunities to participate and launching the Weatherization and Electrification (W/E) Together initiative, which has already helped upgrade homes. BEL has consistently encouraged program designers to make the rebates accessible to rural Americans by simplifying contractor participation and eliminating unnecessary administrative burdens. Although delays have been significant, these programs remain valuable resources for utilities, states, contractors, and community organizations working to keep household energy affordable.
Early state results demonstrate the scale of the opportunity. Georgia reported in August that it had issued more than $50 million in rebates to over 3,500 households. Participants received an average rebate of $12,104 and were projected to save an average of $1,407 annually. Georgia has since paused new HEEHR applications following strong demand. Read Georgia’s results.
Wisconsin has built its program around the established Focus on Energy platform and trusted Trade Ally network. Both programs remain available, with streamlined income qualification and coordination with existing utility and weatherization incentives. Wisconsin households had already received more than $7 million in rebates by early 2026. Explore Wisconsin’s program.
