The Home Electrification and Appliance Rebate [HEAR] Program is a State initiative funded Federally in 2022 that gives low-to-moderate-income households an instant discount of up to $14,000 to switch to high-efficiency electric appliances. Unlike a tax credit that you wait months for, this rebate is applied at the time of purchase, essentially acting like a high-value coupon.
đź”´ BREAKING NEWS: June 1, 2026 HEAR Program Update
The federal High-Efficiency Electric Home Rebate program (officially updated as High-Efficiency Electric Home Rebates” – HEEHR) has restarted, releasing $8.8 billion to state energy programs. While this means many more states will launch their rebate portals soon, the guidelines have been strictly modified for electric-to-electric upgrades only.
What it means for your water heater: Upgrading an old, inefficient standard electric tank to a high-efficiency Heat Pump Water Heater qualifies for up to a $1,750 instant discount. However, swapping out a natural gas, propane, or oil water heater using these federal funds is now restricted.
There are still excellent opportunities to secure up to $14,000 in total home discounts—including Heat Pumps for space heating and cooling, electrical panel and wiring upgrades—as long as your project fits the new electric upgrade framework. Learn how to navigate your space heating and cooling options at our sister site AirComfortDecisions.com
 Source: https://www.energy.gov/cmei/scep/home-energy-rebates-program
1. High-Value Instant Savings
You don’t get a check in the mail; you get a lower price on the invoice.
Heat Pump Water Heaters: Up to $1,750 off.
Heat Pump Heating/Cooling: Up to $8,000 off.
Electrical Panels/Wiring: Up to $6,500 off (if needed for new appliances).
2. Eligibility is Income-Based
The program is designed for households earning less than 150% of the Area Median Income (AMI).
Low Income (<80% AMI): The rebate covers 100% of the cost (up to the caps above).
Moderate Income (80%–150% AMI): The rebate covers 50% of the cost (up to the caps above).
3. Point-of-Sale Convenience
Because this is a point-of-sale program, you must work with a state-approved contractor. You simply apply on the State portal and get your State Voucher. The contractor deducts the amount of the voucher directly from your quote.
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-May 2026 update….Currently, AZ, CA, CO, GA, IN, MI, NC, NY, RI and WI have broadly rolled out their up to $1,750 HEAR/HEEHR instant discount to install Heat Pump Water heaters.
-NM is coming soon.
-Funding in CA and CO has been partially exhausted.
See instantly if you are likely to qualify and estimate the amount of your State HEAR/HEEHR instant discounts
If your main residence is in one of the States shown above, the tool estimator below helps you very quickly estimate if potentially you could qualify for the instant discounts based on your household income:
 Disclaimer: Estimates provided by this calculator are for educational purposes only. Final rebate amounts, eligibility, and timelines are determined by federal, state, and utility providers and are subject to change based on available funding. This tool does not constitute tax, legal, or financial advice. We recommend consulting with a tax professional to verify your specific eligibility before making a purchase.
Ready to Claim Your Instant Discount?
Don’t Navigate the Changes Alone.
Tell us about your current water heating setup below, and we will do the heavy lifting for you:
Step 1: We help you confirm your exact State HEAR/HEEHR instant discount eligibility.
Step 2: We check for additional stackable local utility rebates in your area.
Step 3: We match you with 3 qualified, participating local contractors for 100% free, no-obligation quotes.
Let’s see how close to free your upgrade can be! Fill out your setup details in the form below to get started.
Note:Â Our services are entirely free for homeowners. We exist to simplify energy efficiency, break down complex government rebates, and help you find the biggest savings for your home.
Legal Disclaimer:
NewWaterHeaterDecisions.com is a marketing, educational and lead generation platform, not a licensed contractor. We do not charge homeowners for our consulting, calculator tools, or rebate matching services. To keep our platform free for the public, we may receive a standard marketing or referral fee from the independent participating contractors in our network. This does not impact your rebate eligibility or the price of your installation. All installation services, structural modifications, and electrical work are performed solely by independent contractors who maintain active licenses with the State. NewWaterHeaterDecisions.com does not provide bids, perform construction, or guarantee the final pricing offered by independent contractors. The $1,750 HEAR/HEEHR discount for Heat Pump Water Heaters (and other eligible measures) is a federal program administered by each participating State; eligibility is determined by household income and program availability at the time of installation.