HEEHRA & HOMES Rebate Stack Calculator
How the HEEHRA and HOMES rebates work together
The High-Efficiency Electric Home Rebate Act (HEEHRA) and Home Owner Managing Energy Savings (HOMES) rebate programs are the two cornerstones of the Inflation Reduction Act’s residential electrification push. They target different barriers: HEEHRA reduces the upfront cost of specific electric appliances for low- and moderate-income households, while HOMES rewards performance-based whole-home energy savings projects. Because both programs will be administered by state energy offices, homeowners often wonder whether they can “stack” the incentives and how much funding will realistically flow to their renovation budget. This calculator consolidates federal guidance, key state design choices, and household-specific parameters into a single planning model so that you can map out financing before talking to contractors.
Households that electrify their heating systems, switch to induction cooking, or pursue deep weatherization can unlock thousands of dollars, but the eligibility thresholds vary widely. Income relative to the area median income (AMI), the nature of the installed equipment, and the projected energy savings all interact. The HEEHRA program is designed to eliminate upfront cost barriers for lower-income families, covering up to 100% of costs for households below 80% of AMI and up to 50% of costs for those between 80% and 150% of AMI. HOMES, by contrast, pays for energy performance: the more metered savings or modeled savings you achieve, the higher the incentive, up to double caps for low-income households. Understanding those tiers matters when sequencing projects, especially if you plan to layer state or utility rebates that might limit double-dipping.
Our tool assumes the program design outlined in Department of Energy guidance and early state program plans. You can adjust the energy savings percentage to reflect a contractor quote or audit estimate, as well as add state bonus rebates or subtract incentives you have already claimed. The output highlights HEEHRA direct rebates, HOMES performance payments, and the residual project cost you would finance. That breakdown helps homeowners, energy advisors, and policy advocates quantify the impact of the rebates and communicate with lenders or community-based organizations preparing outreach campaigns.
Calculation methodology
The calculator first assesses income eligibility. We compare your household income (HHI) to the area median income. The ratio \(r\) is computed as:
If \(r \leq 0.8\), your household falls into the low-income tier; if \(0.8 < r \leq 1.5\), you are moderate-income; above that, you are higher-income. HEEHRA coverage factors are then set to 100%, 50%, or 0% respectively. Each equipment type has a statutory cap. The eligible HEEHRA rebate is the minimum of the cap and the product of project cost and coverage factor. We also ensure that HEEHRA cannot exceed the remaining project cost after subtracting any other incentives you already claimed.
Next, the model estimates HOMES performance rebates. We interpret the energy savings percentage input as modeled or measured savings. Projects that save between 20% and 35% receive the lesser of $2,000 or 50% of eligible costs (doubled for low-income households). Projects exceeding 35% savings receive the lesser of $4,000 or 80% of costs (again, doubled for low-income households). Costs eligible for HOMES are reduced by HEEHRA support because DOE guidance prevents stacking on the same measure beyond the net expenditure. The HOMES rebate is also constrained so that total rebates never exceed the remaining project cost.
Finally, state or utility bonuses are added, while previously claimed incentives are subtracted from the cost basis to avoid double-counting. The tool computes net out-of-pocket costs and displays whether stacking is limited by statutory caps. The CSV download lists each incentive component and the key inputs so you can share the scenario with installers, housing counselors, or financial institutions assessing heat pump loan applications.
Worked example
Imagine a family of four earning $68,000 in a metro area where the AMI is $90,000. Their ratio is \(68{,}000/90{,}000 \approx 0.76\), placing them in the low-income tier. They are planning to install a $14,000 cold-climate heat pump expected to cut whole-home energy usage by 38%. A local green bank is offering an extra $1,000 incentive, and they have not yet taken any other rebates. The calculator determines that the HEEHRA rebate covers the maximum $8,000 cap because the household qualifies for 100% coverage and the cap is lower than the project cost. The HOMES rebate for a low-income household with >35% savings can reach up to $8,000, but the eligible cost after HEEHRA support is $6,000. Applying the 80% cost share yields $4,800, which is below the doubled cap, so the household receives $4,800. After adding the $1,000 bonus and subtracting all incentives, their net cost drops to $200—an extraordinary reduction that makes the project financeable even before factoring in low-interest loans.
Contrast that with a moderate-income household at 120% of AMI completing a $9,000 heat pump water heater project with 25% expected savings and $500 already received from a utility program. The HEEHRA coverage factor is 50%, so the rebate is capped at the lesser of $1,750 and $4,250 (half of cost), yielding $1,750. Eligible cost for HOMES is $6,750. With savings between 20% and 35%, the moderate-income cap is $2,000, but the 50% cost-share limit produces $3,375, so the HOMES rebate becomes $2,000. Total rebates equal $3,750. After accounting for the previously claimed $500, the family pays $4,750 out of pocket and can reference the tool’s explanation to understand why the HOMES benefit hit its ceiling.
Detailed formulas
We summarize the formulas used for both programs in the table below. The coverage factors referenced in the table map directly to the income tiers discussed earlier, ensuring consistent treatment throughout the model.
| Program Component | Formula | Key Caps |
|---|---|---|
| HEEHRA rebate | \(\min(\text{cap}, \text{coverage} \times \text{eligible cost})\) | Heat pump $8,000; panel $4,000; water heater $1,750; cooking $840; weatherization $1,600 |
| HOMES rebate (20–35% savings) | \(\min(\text{cap}, \text{share} \times \text{eligible cost})\) with share = 0.5 (1.0 for low-income) | $2,000 cap, doubled for low-income |
| HOMES rebate (>35% savings) | \(\min(\text{cap}, \text{share} \times \text{eligible cost})\) with share = 0.8 (1.6 for low-income) | $4,000 cap, doubled for low-income |
| Total incentives | HEEHRA + HOMES + bonuses | Cannot exceed project cost minus other incentives |
Practical planning guidance
Beyond the pure math, stacking rebates involves administrative sequencing. Many states will run HEEHRA as a point-of-sale rebate through contractors or retailers, while HOMES may require submitting post-installation documentation or pulling smart meter data for measured savings. Households should coordinate with participating contractors early. Ask whether the installer can apply the HEEHRA discount on the invoice, whether blower-door tests or energy modeling are included, and how data will be collected to confirm savings. Our calculator’s breakdown helps you set expectations and plan for cash flow because some states may pay HOMES rebates after the project is verified, meaning you might finance the full cost temporarily even if rebates eventually cover most of it.
State energy offices are also layering bonus incentives for multifamily buildings, disadvantaged community projects, or early electrification adopters. Use the bonus field to incorporate those adders. Be aware that stacking federal tax credits, such as the Residential Clean Energy Credit or the Energy Efficient Home Improvement Credit, may affect your net tax liability but do not reduce the project cost basis for rebates; however, programs may prevent the same cost elements from being reimbursed twice. Consult with a tax professional for edge cases such as mixed-use properties or landlords passing benefits to tenants.
Electrification can unlock energy savings beyond utility bills. Heat pumps improve indoor air quality and eliminate combustion risks, while panel upgrades prepare your home for future EV charging. The HOMES program incentivizes comprehensive retrofits with inclusive metrics, encouraging you to tackle insulation, air sealing, and smart controls alongside major equipment. By modeling different savings percentages in the calculator, you can see how investing in deeper retrofits moves you into higher HOMES brackets. Pairing the insights with financing tools—green mortgages, on-bill repayment, or credit union loans—can accelerate the transition.
Example scenario comparison
The table below compares three households with different profiles. Reviewing the pattern illustrates how income tiers and energy savings interact. You can adjust the inputs in the calculator to mirror similar situations in your community program pipeline.
| Household | Income Tier | Project & Cost | Energy Savings | HEEHRA | HOMES | Total Incentives | Net Cost |
|---|---|---|---|---|---|---|---|
| A | Low (70% AMI) | Heat pump $14,000 | 40% | $8,000 | $4,800 | $12,800 | $1,200 |
| B | Moderate (120% AMI) | Water heater $9,000 | 25% | $1,750 | $2,000 | $3,750 | $5,250 |
| C | Higher (>150% AMI) | Panel upgrade $5,500 | 10% | $0 | $0 | $0 | $5,500 |
Limitations and assumptions
This calculator simplifies program rules to provide fast guidance. Actual state program designs may introduce additional constraints, such as per-household lifetime caps, multifamily allocation adjustments, contractor participation requirements, or proof-of-income verification. We assume that the selected measure qualifies for HEEHRA and that HOMES applies to the full project scope; in practice, mixed-fuel homes or partial retrofits may require sub-metering or more granular modeling. The energy savings percentage should be derived from a certified energy audit or the DOE’s energy modeling protocols. Because rebate funding is finite, some states may ration payments or adjust rebate levels over time. Always confirm with your state energy office or program administrator before signing contracts. The calculator is meant as an educational planning aid, not a guaranteed offer.
Nevertheless, by presenting an accessible breakdown, the tool empowers households to advocate for inclusive program design, helps contractors estimate pipeline financing needs, and gives community organizations a starting point for client coaching. Use the outputs as a conversation starter and revisit as regulations evolve.