HOMES Program Guide 2026: Up to $8,000 in Energy Rebates
The HOMES program puts up to $8,000 back in your pocket for making your house more energy efficient. It stands for Home Owner Managing Energy Savings, and it is one of only two federal rebate programs still active in 2026 after the One Big Beautiful Bill wiped out the 25C and 25D tax credits.
Unlike tax credits you claim months later on your return, HOMES rebates hit your bank account directly — either as a point-of-sale discount or a reimbursement after the work is done. The catch? Your project has to cut your home’s total energy use by a measurable amount. Not just swap one appliance. The whole house has to get better.
This guide covers exactly how much you can get, what work qualifies, which states are accepting applications right now, and how to avoid the mistakes that get applications denied.
What Is the HOMES Program?
HOMES is a $4.3 billion federal rebate program created by the Inflation Reduction Act in 2022. The money flows from the U.S. Department of Energy to individual states, and each state runs its own version of the program. Think of it as a federal piggy bank that states draw from to pay homeowners who make their houses more efficient.
A few things set HOMES apart from every other energy incentive on the books:
- It is a direct rebate, not a tax credit. You do not wait until April to see the money. Depending on your state, the contractor applies the discount at checkout or you submit receipts and get a check.
- It targets whole-home performance. You cannot use HOMES to replace a single water heater and call it a day. The program requires demonstrated energy savings across your entire home.
- Income matters. Lower-income households get larger rebates and a higher percentage of project costs covered.
- Each state sets its own rules. Arizona’s HOMES program looks different from Massachusetts’s. Application forms, contractor lists, and processing times all vary.
The program runs until the money is gone or September 30, 2031 — whichever comes first. Several states have already burned through a significant chunk of their allocation, so waiting is genuinely risky. Use our rebate calculator to see what you qualify for based on your zip code and income.
How Much Can You Get?
Your HOMES rebate depends on two factors: your household income relative to your area’s median income (AMI), and how much energy your project saves. Here is the breakdown:
| Income Tier | AMI Threshold | Max Rebate | Cost Coverage | Min Energy Savings |
|---|---|---|---|---|
| Low income | ≤80% of AMI | $8,000 | Up to 80% of project cost | 15%+ modeled or measured |
| Moderate income | 80–150% of AMI | $4,000 | Up to 50% of project cost | 15%+ modeled or measured |
| Market rate | >150% of AMI | Limited or $0 | Varies by state | Typically 35%+ required |
What is AMI? Area Median Income is the midpoint household income for your county or metro area, set annually by HUD. A family of four earning $60,000 in rural Alabama has a very different AMI percentage than the same family in San Francisco. Check your specific AMI tier with our income eligibility guide.
Let’s put real numbers on this. Say you’re a household at 70% AMI and your whole-home retrofit costs $12,000. You qualify for up to 80% coverage, which is $9,600 — but the cap is $8,000. So you get $8,000 back and pay $4,000 out of pocket. For a $6,000 project at the same income level, 80% is $4,800, so your rebate is $4,800.
At the moderate tier (80–150% AMI), a $12,000 project gets 50% coverage = $6,000, but the cap is $4,000. Your rebate: $4,000.
Households above 150% AMI face tougher requirements. Most states either exclude them entirely or require 35%+ energy savings to qualify for a reduced rebate. A handful of states have created limited programs for this tier using their own supplemental funds.
What Home Improvements Qualify?
HOMES covers whole-home energy retrofits. The specific improvements do not matter as much as the result — your home has to use measurably less energy after the work is done. That said, here are the upgrades that most commonly appear in successful HOMES applications:
Building Envelope
- Insulation — Attic, wall cavity, basement/crawlspace, and rim joist insulation. This is the single most common improvement in HOMES projects because it delivers massive energy savings per dollar. See our insulation rebate calculator for project-specific estimates.
- Air sealing — Sealing gaps around windows, doors, electrical outlets, plumbing penetrations, and attic hatches. Often done alongside insulation.
- Windows and doors — Replacing single-pane or deteriorated windows with ENERGY STAR-certified units. High cost but significant impact on drafty older homes.
HVAC Systems
- Heat pumps (heating and cooling) — Replacing a gas furnace or old AC with a heat pump is the biggest single efficiency gain for most homes. A properly sized heat pump can cut heating energy use by 50%. Check current heat pump rebate amounts.
- Duct sealing and replacement — Leaky ducts waste 20–30% of conditioned air. Sealing or replacing them is a high-ROI improvement.
- Smart thermostats — Typically bundled with HVAC upgrades rather than standalone.
Water Heating
- Heat pump water heaters — 3–4x more efficient than conventional electric tanks. Often included in whole-home retrofits.
What Does NOT Qualify
HOMES is not for individual appliance swaps. If you only want a new stove, dryer, or electrical panel, look at the HEAR program instead. HOMES also does not cover solar panels, battery storage, or EV chargers — those fall under different programs (and the 25D credit that covered them expired December 31, 2025).
Energy Savings Requirements
Here is where HOMES gets technical. Every project has to prove it will cut your home’s energy consumption by a specific percentage. States offer two pathways to demonstrate this:
Modeled Pathway
A BPI-certified energy auditor runs your home through DOE-approved software before any work begins. The software models your current energy use and predicts what it will be after the proposed upgrades. If the model shows at least 15% reduction for the lower rebate tier (or 35% for the higher tier in some states), you qualify.
Rebate tiers by modeled savings:
| Modeled Energy Reduction | Rebate Multiplier |
|---|---|
| 15–19% | Base rebate amount |
| 20–34% | Standard rebate amount |
| 35%+ | Maximum rebate amount (required for >150% AMI in most states) |
The modeled pathway is more predictable. You know your rebate amount before construction starts, which helps with budgeting. The downside: energy modeling costs $300–$800, though many states cover this as part of the program.
Measured Pathway
Instead of modeling, some states let you prove savings with actual utility bills. You complete the work, then submit 12 months of post-retrofit utility data compared to your pre-retrofit baseline. If the real-world savings hit the target percentage, you get the rebate.
The measured pathway carries more risk. If your savings come in at 14% instead of 15%, you could get a reduced rebate or nothing. Weather variations, occupancy changes, and behavioral differences all affect real-world numbers. Most contractors and program administrators recommend the modeled pathway for this reason.
Some states only offer one pathway. Check your state’s specific program page for details.
HOMES Program Status by State
Every state received a HOMES allocation, but they are launching at different speeds. Some have been accepting applications since late 2024. Others are still setting up their programs. And a few states — notably Florida and South Dakota — have returned their federal funds entirely.
Here is the current status as of February 2026:
| State | HOMES Status | Notes |
|---|---|---|
| Arizona | Open | Accepting applications |
| California | Open | Administered by CEC |
| Colorado | Open | Through CEO |
| Connecticut | Open | Accepting applications |
| Hawaii | Open | Accepting applications |
| Illinois | Open | Accepting applications |
| Maine | Open | Through Efficiency Maine |
| Maryland | Open | Accepting applications |
| Massachusetts | Open | Through Mass Save partnership |
| Michigan | Open | Accepting applications |
| Minnesota | Open | Accepting applications |
| Nevada | Open | Accepting applications |
| New Hampshire | Open | Accepting applications |
| New Jersey | Open | Accepting applications |
| New Mexico | Open | Accepting applications |
| New York | Open | Through NYSERDA |
| Oregon | Open | Accepting applications |
| Pennsylvania | Open | Accepting applications |
| Rhode Island | Open | Accepting applications |
| Vermont | Open | Through Efficiency Vermont |
| Virginia | Open | Accepting applications |
| Washington | Open | Accepting applications |
| Wisconsin | Open | Through Focus on Energy |
| Alabama | Pending | Program in development |
| Alaska | Pending | Program in development |
| Arkansas | Pending | Program in development |
| Delaware | Pending | Program in development |
| Florida | Returned | State returned federal funds |
| Georgia | Pending | Program in development |
| Idaho | Pending | Program in development |
| Indiana | Pending | Program in development |
| Iowa | Pending | Program in development |
| Kansas | Pending | Program in development |
| Kentucky | Pending | Program in development |
| Louisiana | Pending | Program in development |
| Mississippi | Pending | Program in development |
| Missouri | Pending | Program in development |
| Montana | Pending | Program in development |
| Nebraska | Pending | Program in development |
| North Carolina | Pending | Program in development |
| North Dakota | Pending | Program in development |
| Ohio | Pending | Program in development |
| Oklahoma | Pending | Program in development |
| South Carolina | Pending | Program in development |
| South Dakota | Returned | State returned federal funds |
| Tennessee | Pending | Program in development |
| Texas | Pending | Program in development |
| Utah | Pending | Program in development |
| West Virginia | Pending | Program in development |
| Wyoming | Pending | Program in development |
23 states currently open. If your state is listed as “Pending,” the money is allocated but the program is not yet accepting applications. Bookmark your state page — we update statuses as programs launch.
How to Apply Step by Step
The application process varies by state, but the general flow looks like this:
Step 1: Check Your Eligibility
Start with two questions: Is your state’s HOMES program open? And what income tier do you fall into? Use our rebate calculator to answer both in under 60 seconds.
Step 2: Get an Energy Audit
Contact a BPI-certified energy auditor (more on this below). They will assess your home, identify the biggest efficiency gaps, and run the energy model that determines your rebate amount. Many state programs cover the audit cost or reimburse it as part of the rebate.
Step 3: Choose Your Improvements
Based on the audit results, work with your contractor to design a scope of work that hits the minimum energy savings threshold. A good contractor will optimize the package — combining high-impact, lower-cost improvements like air sealing and insulation with bigger upgrades like heat pumps to maximize your rebate.
Step 4: Submit Your Application
In most states, your contractor handles the paperwork. They submit the energy model, proposed scope of work, cost estimates, and your income documentation to the state program administrator. Approval typically takes 2–6 weeks.
Step 5: Complete the Work
Once approved, the work gets done. Some states require pre-approval before construction begins. Others let you start immediately and submit for the rebate after. Do not skip this detail — starting work before pre-approval in a state that requires it can disqualify your project.
Step 6: Get Your Rebate
After the work passes inspection (usually by a third-party verifier), you receive your rebate. In point-of-sale states, the contractor already applied the discount to your invoice. In reimbursement states, you will get a check or direct deposit within 4–8 weeks.
Pro tip: Document everything. Keep every receipt, every contractor invoice, every energy audit report. States can request additional documentation months after approval, and missing paperwork is the number one reason rebates get clawed back.
HOMES vs HEAR: Which Program Is Right for You?
HOMES and HEAR are the two surviving federal rebate programs after the OBBB killed the 25C and 25D tax credits. They are both funded by the Inflation Reduction Act, both state-administered, and both income-based. But they cover very different things.
| Feature | HOMES | HEAR (HEEHRA) |
|---|---|---|
| Focus | Whole-home energy performance | Individual appliance electrification |
| Total federal budget | $4.3 billion | $4.5 billion |
| Max rebate (low income) | $8,000 | $14,000 |
| Max rebate (moderate) | $4,000 | $7,000 |
| Energy modeling required? | Yes | No |
| Works on single appliances? | No — whole-home only | Yes |
| Point-of-sale discount? | Some states | Yes (designed for POS) |
| Can you use both? | Yes, for different improvements in the same home | |
Choose HOMES if: You are planning a major renovation that touches insulation, HVAC, and air sealing together. The whole-home approach typically delivers bigger total savings — both on your energy bills and in rebate dollars.
Choose HEAR if: You need to replace one specific appliance — a water heater, stove, or electrical panel. No energy modeling needed, and the rebate is applied at checkout. Read the full HEAR program guide for details.
The smart move: Use both. You can get HOMES rebates for your insulation and HVAC overhaul, then use HEAR for a new heat pump water heater and electric stove. The programs are designed to stack. We break down exactly how in our stacking rebates guide.
Stacking HOMES with Other Incentives
HOMES rebates do not exist in a vacuum. Most homeowners can layer multiple incentives on the same project to dramatically reduce costs. Here is what stacks with HOMES:
HOMES + HEAR
As mentioned above, you can use both federal programs on the same home as long as the rebates apply to different improvements. HOMES covers the whole-home performance work; HEAR covers individual appliance swaps. Together, a low-income household could theoretically receive up to $22,000 in combined federal rebates.
HOMES + Utility Rebates
Your local utility almost certainly offers its own efficiency rebates. These are separate from federal programs and fully stackable. Common utility rebates include $50–$300 for smart thermostats, $500–$2,000 for heat pumps, and $200–$800 for insulation. Find your utility’s programs on our state rebates page.
HOMES + State Programs
Several states run their own rebate or loan programs on top of the federal HOMES allocation. California’s TECH Clean California, New York’s EmPower+ program, and Massachusetts’s Mass Save all provide additional incentives that can be combined with HOMES.
HOMES + Weatherization Assistance (WAP)
The federal Weatherization Assistance Program provides free weatherization to low-income households. If you qualify for WAP, you can use it for basic air sealing and insulation, then layer HOMES funding on top for more extensive work like HVAC replacement.
What does NOT stack: You cannot “double-dip” — meaning you cannot use HOMES and HEAR on the exact same piece of equipment. You also cannot exceed 100% of project costs when combining programs. Most state administrators will flag this during review.
For a step-by-step breakdown, read our complete guide to stacking energy rebates.
Finding a Qualified Contractor
You cannot DIY a HOMES project. The program requires work to be performed by qualified contractors, and most states mandate BPI (Building Performance Institute) certification.
What BPI Certification Means
BPI-certified contractors have passed exams on building science, energy auditing, and retrofit installation. They understand how insulation, air sealing, ventilation, and HVAC interact as a system — not just how to install individual products. This matters because a poorly designed retrofit can create moisture problems, indoor air quality issues, or even carbon monoxide risks.
How to Find a BPI Contractor
- BPI Contractor Finder: Search at bpi.org/find-a-contractor by zip code
- State program websites: Most HOMES programs maintain lists of approved contractors
- ENERGY STAR contractor network: energystar.gov/campaign/improvements/findcontractor
- Local utility programs: Utilities often have pre-vetted contractor networks
Red Flags to Watch For
- Any contractor who says they can “guarantee” a specific rebate amount before doing an energy audit
- Pressure to sign a contract before the energy model results come back
- No BPI certification or unwillingness to provide their certification number
- Quoting only one improvement (e.g., just insulation) without assessing the whole house
- No mention of combustion safety testing or ventilation assessment
A legitimate HOMES contractor will walk through your house, test blower door air leakage, inspect insulation levels, evaluate your HVAC system, and then design a package of improvements that hits the energy savings target. They handle most of the rebate paperwork and coordinate with the state program administrator.
Expect the audit-to-rebate timeline to run 3–6 months depending on your state’s backlog. Get started now — contractor calendars fill up fast once programs launch, and the funds are first-come, first-served.
Ready to see what you qualify for? Run your numbers through our energy rebate calculator, or check the full 2026 energy rebates guide for a complete picture of every incentive available to you.