ALBUQUERQUE, N.M.-As part of President Biden’s Investing in America agenda(link is external), the U.S. Department of Energy (DOE) announced today that New Mexico has launched its first Home Energy Rebates program, supported by the Inflation Reduction Act. New Mexico is the third state in the nation to launch the Home Electrification and Appliance Rebates (HEAR) portion of the rebate program – enabling low-income and middle-income households to save on energy efficiency improvements such as insulation, air sealing, and heat pumps that reduce whole-home energy consumption.
New Mexico’s launch is part of the Biden-Harris Administration’s nationwide initiative to provide $8.8 billion in Federal funding for states, territories, and Tribes to lower energy costs and increase efficiency in American homes by making it cheaper to install cost-saving measures such as heat pumps, electrical panels, and insulation. These energy-saving measures will save American households up to $1 billion annually in energy costs and support an estimated 50,000 U.S. jobs in residential construction, manufacturing, and other sectors. These investments also advance the President’s Justice40 Initiative(link is external), which sets a goal that 40% of the overall benefits of certain federal climate, clean energy, affordable and sustainable housing, and other investments flow to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution.
“The Biden-Harris Administration is helping American consumers keep their hard-earned money in their pockets by making it easier to afford energy efficient technologies that slash home utility bills,” said U.S. Secretary of Energy Jennifer M. Granholm. “Increasing access to home energy upgrades is a money saver and a job creator-and we congratulate New Mexico for making the clean energy transition affordable for all New Mexicans.”
“Home energy rebates for clean and energy-efficient appliances and upgrades are good for the planet because they help cut pollution, but more importantly, they are good for New Mexican families because they will save money by lowering energy bills,” said John Podesta, Senior Advisor to the President for International Climate Policy. “Congratulations to New Mexico for making these game-changing Inflation Reduction Act incentives available to their residents.”
“New Mexico is the first state to enable residents to get home-energy efficiency rebates at the point of sale, reflecting our ongoing commitment to leading on the clean energy transition,” said New Mexico Gov. Michelle Lujan Grisham. “These rebates are available to low-income residents, ensuring that all of our citizens can participate in this transition.”
“I led the fight to create and fund a rebate program that would help families with the upfront costs of high-efficiency electric home appliances. Today, New Mexico is launching the first phase of that very program,” said U.S. Senator Martin Heinrich. “After this, I am eager for the state to continue rolling out the program I wrote and passed into law, so that all New Mexicans can enjoy the benefits of high-efficiency appliances – from heat pumps for home heating and cooling to induction stovetops and electric clothes dryers – delivering lower costs for New Mexico families, making homes healthier and more comfortable, and giving more folks the freedom to choose the appliances that work for them.”
“I’m grateful for the Biden-Harris administration’s launch of the Home Energy Rebates program in New Mexico,” said U.S. Senator Ben Ray Luján. “This initiative will provide crucial support for lower-income households to invest in energy-efficient upgrades, while also creating an estimated 50,000 jobs nationwide. It underscores a commitment to protecting the planet, saving money for New Mexicans, and creating jobs.”
New Mexico’s Home Energy Rebate Programs
New Mexico is launching its HEAR program – one of two programs making up the Federal Home Energy Rebate programs. To get help to residents as quickly as possible, New Mexico is jumpstarting its rebates program by offering low-income single-family homeowners up to $1,600 off insulation purchased at participating retailers.
Later, New Mexico’s HEAR program will provide low-income single-family homeowners (defined as those earning 80% or less of their area median income) and low- and middle-income renters (those earning 150% or less of their area median income) up to $14,000 in rebates to upgrade equipment and appliances. They will be able to save up to:
- $8,000 for an ENERGY STAR-certified electric heat pump for space heating and cooling.
- $4,000 for an electrical panel.
- $2,500 for electrical wiring.
- $1,750 for an ENERGY STAR-certified electric heat pump water heater.
- $1,600 for insulation, air sealing, and mechanical ventilation products.
- $840 for an ENERGY STAR-certified electric heat pump clothes dryer and/or an electric stove, cooktop, range, or oven.
There is a second Home Energy Rebates program that New Mexico will launch later. Under the Home Efficiency Rebates program, households can save thousands of dollars on measures that reduce whole-home energy consumption.
“The HEAR program will accelerate New Mexico’s journey to a clean-energy future, helping to fulfill a goal established at the beginning of Governor Michelle Lujan Grisham’s administration,” said Energy, Minerals and Natural Resources Department Secretary-Designate Melanie Kenderdine. “We are especially proud that this program will help many New Mexicans who might not otherwise be able to afford to participate in the clean energy transition.”