The $4.28 billion High-Efficiency Electric Home Rebate Program, which is baked into the IRA, will provide an upfront rebate of up to $8,000 to install heat pumps, which can both heat and cool homes. It also provides a rebate of up to $1,750 for heat-pump water heaters. (Editor’s note: We just installed an air source heat pump hot water heater in our house. It costs a miniscule $108 a year to run.)
There’s also a rebate of up to $840 to offset the cost of a
heat-pump clothes dryer or an electric stove, including induction ranges.
If a home needs an electrical panel upgrade to support new electrical appliances, then there’s up to a $4,000 rebate to help with that. There’s also a rebate of up to $2,500 for electrical wiring improvements.