Federal Energy Rebates: Save Big on Home Upgrades in Utah

Imagine cutting your energy bills and making your home more comfortable. Plus, you could get money back from the government to help pay for it. That’s what federal energy rebates can do for Utah homeowners like you! These rebates are part of the Inflation Reduction Act (IRA). They help you afford upgrades that save energy. These upgrades include better insulation, new heating and cooling systems, and electric appliances.

If you live in Eagle Mountain, Salt Lake, or Utah County, this guide will help you. It will explain how to qualify for these rebates. You will learn what they cover, where to apply, and why they are a great opportunity. Let’s dive in and see how you can save money while making your home more efficient!

What Are Federal Energy Rebates?

The Inflation Reduction Act, passed in 2022, created two programs to help homeowners make their homes more energy-efficient:

1. Home Efficiency Rebates (HOMES): This program gives you money back when you make upgrades that cut down on your home’s energy use. For example, adding insulation to your walls or getting a better air conditioner can help you earn rebates. These rebates depend on how much energy you save. The more energy you save, the bigger the rebate!
2. Home Electrification and Appliance Rebates (HEEHRA): This program helps you replace gas or old appliances with new electric ones. These modern appliances use less energy, such as heat pumps, electric water heaters, and electric stoves. It’s especially helpful for low and moderate-income households.

Utah received $101 million to fund these rebates. The Utah Office of Energy Development is setting them up. They’re expected to launch before the end of 2025, so now’s the perfect time to start planning.

Why These Rebates Matter

These rebates are a fantastic opportunity for several reasons:

• Lower Energy Bills: Upgrading to energy-efficient appliances, like a new air conditioner, can help you save on electricity. Better insulation also reduces gas usage. This means you will have smaller utility bills each month. For example, a smart thermostat can save you up to 10% on your energy costs by adjusting temperatures when you’re not home.

• Money Back for Upgrades: The rebates can cover a big chunk of the cost of these improvements. For low-income households, you could get up to $8,000 for energy-saving projects or $14,000 for new electric appliances. That’s like getting a huge discount on making your home better!

• Help the Environment: Using less energy cuts down pollution from power plants. This helps clean the air in Utah and fight climate change. This makes our communities healthier for everyone.

• Stay Comfortable: Upgrades like insulation or a new HVAC system help keep your home cool in summer and warm in winter. This way, you stay comfortable no matter the weather.

• Boost Home Value: Energy-efficient homes attract more buyers. These upgrades can raise your home’s value if you sell.

Who Can Qualify for These Rebates?

Most homeowners in Utah can qualify for at least some of these rebates, but the biggest savings go to low and moderate-income households. Here’s how it works:

Income Levels

Your income level determines how much rebate you can get:

• Low-Income Households: If your household income is 80% or less of your area’s median income (AMI), you can get double the rebate amount for HOMES projects (up to $4,000 or $8,000) and up to $14,000 for HEEHRA projects.

• Moderate-Income Households: If your income is between 80% and 150% of the AMI, you can receive 50% of the cost. This is up to $7,000 for HEEHRA projects and standard amounts for HOMES projects.

• Higher-Income Households: If your income is over 150% of the AMI, you can still get HOMES rebates. These rebates can be up to $2,000 or $4,000. However, you will not qualify for HEEHRA rebates.

Understanding Area Median Income (AMI)

The AMI is the middle point of incomes in your area—half of the households earn more, and half earn less. It varies depending on where you live and how many people are in your household. For example, in Salt Lake County, the 2025 AMI for a family of four is around $95,000. So, 80% of that would be about $76,000 or less to qualify for the higher rebates. You can find your area’s AMI on the HUD User website. You can also contact the Utah Office of Energy Development when the programs start.

Type of Home

The rebates are available for existing homes, including:

• Single-family homes

• Duplexes

• Townhomes

• Multifamily units (like apartments)

For multifamily buildings, at least 50% of the residents must have low or moderate incomes. Rebates are limited to 100 units per building.

Where You Live

Since the rebates are managed by each state, Utah’s program will be run by the Utah Office of Energy Development. If you live in Eagle Mountain, Salt Lake, Utah County, or anywhere else in Utah, you’ll apply through Utah’s program.

What Upgrades Are Covered?

The rebates cover a variety of upgrades that make your home more energy-efficient. Here’s a closer look at what’s included:

Home Electrification and Appliance Rebates (HEEHRA)

These upgrades help you switch to electric appliances:

• Insulation and Air Sealing: Same as HOMES, these improve efficiency.

• Ventilation Improvements: Better airflow systems improve air quality and efficiency.

• Heat Pump Water Heaters: These use electricity to heat water more efficiently than traditional water heaters.

• Air Source Heat Pumps: These are super-efficient systems that heat and cool your home using electricity.

• Electric Panel/Wiring Upgrades: If you’re switching to electric appliances, you might need to upgrade your electrical system.

• Electric Cooking Appliances: Think electric stoves or ovens that replace gas models.

• Heat Pump Clothes Dryers: These dryers use less energy than traditional ones.

The final list of eligible upgrades will be ready when Utah starts the programs. Check the Utah Energy Hub for updates.

How Much Can You Get?

The amount you get depends on the upgrade and your income level. Here’s a breakdown:

• HOMES Rebates: You get more money if your upgrades save more energy. For example, a project that cuts your energy use by 35% could get you up to $4,000, or $8,000 if you’re low-income.

• HEEHRA Rebates: These are only for low and moderate-income households. Low-income households can get 100% of the cost covered up to $14,000, while moderate-income households get 50% up to $7,000.

These amounts can make a big difference. This is especially true for large projects like installing a new heat pump or upgrading your home’s insulation.

How to Apply for the Rebates

When the programs launch, applying should be straightforward. Here’s the process:

1. Check Your Eligibility:
   1. Find out if your income qualifies for the bigger rebates. Check your area’s AMI through the HUD User website or local resources.
   2. Confirm that your home (single-family, duplex, etc.) is eligible.
2. Choose Your Upgrades:
   1. Decide what energy-efficient improvements you want to make. A professional contractor, like Ninja Plumbing, Heating & Air, can help you pick the best options for your home.
3. Get Quotes:
   1. Contact a licensed contractor to get estimates for the work. This helps you know the cost and what rebates you might get.
4. Apply for the Rebate:
   1. Once the program launches, apply through the Utah Office of Energy Development or their designated website. For HEEHRA, the rebate might be applied at the point of sale, meaning you get the discount when you buy the appliance.
5. Complete the Work:
   1. After approval, have your contractor do the upgrades. Then, submit proof of the work to claim your rebate.

Important: Rebates are not retroactive, meaning you won’t get money back for work done before you’re approved. Wait for the program to launch and follow the application process to ensure you qualify.

How Ninja Can Help

At Ninja Plumbing, Heating & Air, we’re ready to help you make the most of these federal energy rebates. We have over 20 years of experience serving Eagle Mountain, Salt Lake, and Utah County. We are a family-owned business with an A+ rating from the Better Business Bureau. Here’s how we can support you:

• Free Consultations: We provide free assessments to find upgrades that qualify for rebates. This includes smart thermostats and efficient HVAC systems.

• Professional Installation: Our licensed technicians install everything from insulation to heat pumps, ensuring your upgrades meet program requirements.

• Rebate Guidance: When the programs launch, we’ll help you navigate the application process to maximize your savings.

• Summer Readiness Package: For just $69, first-time clients can get our package. It includes an HVAC inspection, a tune-up, and an energy efficiency check. This will help prepare your home for summer and future rebates.

Don’t miss out on these savings! Call us at (801) 997-8909 or visit Ninja HVAC to start planning your upgrades.

Conclusion

Federal energy rebates are a game-changer for Utah homeowners looking to save money and make their homes more efficient. To make the most of these programs in 2025, know who qualifies, what upgrades are covered, and how to apply. If you add insulation, upgrade your HVAC system, or switch to electric appliances, you can save money. These rebates can help you with those upgrades.

At Ninja Plumbing, Heating & Air, we’re here to help you every step of the way. Contact us today to learn how you can prepare for these rebates and keep your home comfortable year-round. Visit Ninja HVAC or call (801) 997-8909 to get started. For more details on the rebates, check out the Utah Energy Hub or the Department of Energy.