Arizona – Home Electrification and Appliance Rebate (HEAR) Program

Summary

Note: The Federal Inflation Reduction Act (IRA) created the Home Electrification and Appliance Rebate (HEAR) Program. The IRA established the main parameters for this program, but allowed the states to customize the program to meet their state-specific needs. The program is designed to award rebates for purchase of qualifying home electrification equipment and appliances. Residents earning less than 80% of the Area Median Income (AMI) can receive the full rebate amount, and residents earning between 80% and 150% AMI can receive a partial rebate. See summary below and program website for complete details.

Arizona is launching the HEAR program in phases. As of December 2024, only rebates for single-family homes are available. A multifamily pilot is expected in Q2 2025.

The Arizona Governor’s Office of Resiliency will receive $76 million in federal funding for the HEAR Program. Incentives are available to owners of single-family homes who earn less than 80% of their county’s AMI or who participate in certain state or federal benefit programs. Residents between 80% and 150% of their county’s AMI are eligible for reduced rebates.

The maximum incentive is $14,000 per household; rebates are also capped at 100% of project costs for low-income residents (80% AMI threshold) and 50% of project costs for moderate-income residents (150% AMI threshold). When applicable, technologies must be ENERGY STAR certified and/or installed by an authorized program contractor.

Incentives are available for:

• Heat Pump Water Heaters: up to $1,750
• Heat Pumps for Space Heating: up to $8,000
• Heat Pump Clothes Dryers: up to $840
• Electric Load Service Center (electric panel upgrades): up to $4,000
• Electrical Wiring: up to $2,500
• Insulation, Air Sealing, Ventilation: up to $1,600