Can HEAR and HOMES rebates be combined?

Yes. HEAR and HOMES are stackable under the IRA. An LMI household can receive up to $14,000 in HEAR rebates plus up to $8,000 in HOMES rebates for a combined maximum of $22,000. HOMES calculates its rebate on net project cost after HEAR rebates, so HEAR should be processed first.

What is the maximum combined HEAR + HOMES rebate?

The theoretical maximum is $22,000 for LMI households: $14,000 HEAR + $8,000 HOMES (at 35%+ energy savings). For moderate-income households (80-150% AMI), the maximum is $15,000: $7,000 HEAR + $8,000 HOMES. Market-rate households (above 150% AMI) are not eligible for HEAR but can receive up to $8,000 from HOMES alone.

Does HOMES require an energy audit?

Yes. HOMES requires a certified energy assessment to establish the baseline energy consumption and model the projected savings from proposed upgrades. The modeled savings path (most common) uses approved software run by a HERS rater or BPI Building Analyst. The energy model must show 20%+ projected energy savings for the HOMES rebate to apply.

Do you have to apply for HEAR and HOMES separately?

In most states, yes — HEAR and HOMES are separate applications. Some states (Michigan, Maryland) offer a bundled application for both programs. In all cases, HEAR documentation should be submitted and processed before HOMES to establish the correct net cost basis for the HOMES rebate calculation.

What energy savings threshold does HOMES require?

HOMES requires a minimum 20% whole-home energy savings to qualify. The rebate tiers are: 20-34% savings = up to $2,000 market-rate / $4,000 LMI; 35%+ savings = up to $4,000 market-rate / $8,000 LMI. Savings are calculated on whole-home energy consumption, not individual measure performance.

HEAR + HOMES Combined Rebates 2026 — Stack Up to $22,000 in IRA Rebates

Newsletter HEAR vs. HOMES HOMES Guide HEAR Application State Tracker

Last updated: April 12, 2026

HEAR (Home Energy Rebates) and HOMES (Home Owner Managing Energy Savings) are two separate IRA programs that can be stacked for the same project. When combined on a qualifying deep retrofit, the maximum total rebate for an LMI household is $22,000.

$22,000

Maximum combined HEAR + HOMES rebate (LMI household, 35%+ energy savings)

Sequencing is critical. HOMES calculates its rebate on the net project cost after HEAR rebates are deducted. Process HEAR first, then submit HOMES with the net cost basis. Reversing this order can reduce your HOMES rebate or create audit complications.

Combined Rebate Amounts by Income Tier

Household income	HEAR maximum	HOMES maximum (35%+ savings)	Combined maximum
≤80% AMI LMI	$14,000	$8,000	$22,000
81–150% AMI Moderate	$7,000	$8,000	$15,000
>150% AMI Market Rate	Not eligible	$8,000	$8,000

HOMES maximums shown for ≥35% energy savings. At 20–34% savings: LMI max = $4,000; moderate/market-rate = $2,000. See HOMES program guide for full tier details.

HEAR vs. HOMES: Core Difference

	HEAR	HOMES
Income requirement	Yes (≤150% AMI)	No income limit
Rebate basis	Equipment installed	Energy savings achieved
Minimum threshold	None (install qualifying equipment)	20% whole-home energy reduction
Audit required	No	Yes — HERS rater or BPI Building Analyst
Pre-approval (some states)	CO, NY, MD, RI require it	NY, CO, MD require it
Best for	Individual equipment upgrades	Whole-home deep retrofits

What Projects Achieve 20%+ Savings for HOMES?

Retrofit package	Typical modeled savings	HOMES eligible?
Heat pump only (replacing gas furnace)	12–18%	Usually not at 20%
Heat pump + insulation/air sealing	22–30%	Yes — 20–34% tier
Heat pump + insulation + HPWH	28–38%	Yes — may reach 35% tier
Full deep retrofit (HP + weatherization + HPWH + windows)	35–55%	Yes — 35%+ tier

Design for the savings threshold, not just the equipment list. A heat pump alone often won't hit 20% savings. Add insulation and air sealing and you're typically in the 22–30% range. Add a heat pump water heater and you may reach the 35%+ tier that doubles the HOMES rebate.

The 6-Step Combined Job Workflow

Qualify the household for both programs

Confirm income eligibility (HEAR) and whether the project can achieve 20%+ savings (HOMES). HEAR income check first — if the household isn't HEAR-eligible, evaluate HOMES-only.

Commission the energy model

A HERS rater or BPI Building Analyst runs a pre-retrofit assessment and models the proposed package. Budget $750–$2,000 for the audit. The model must show 20%+ projected savings to unlock HOMES.

Submit pre-approvals (where required)

NY, CO, and MD require pre-approval for both HEAR and HOMES before installation. MA and other states recommend it. Submit both pre-approvals in parallel — don't wait for HEAR approval before starting HOMES pre-approval.

Install all measures

Install the full package as modeled. Any deviation from the modeled measures (substituting equipment, skipping a measure) requires a model update. HOMES auditors compare installed measures against the model.

Submit HEAR documentation first

File HEAR paperwork: AHRI certificates, invoices, income verification, contractor certification. Receive HEAR rebate confirmation before proceeding to HOMES. This establishes the net cost basis for the HOMES calculation.

Submit HOMES on net cost basis

Include the HEAR rebate confirmation letter, post-installation documentation, and net project cost calculation. HOMES rebate is a percentage of net cost (after HEAR), capped at the tier maximum.

Worked Example: Rural Michigan LMI Household

Project Profile

Family of 4, rural northern Michigan
Oil heat + electric resistance water heater
Household income: $74,000 (≤80% AMI — full LMI tier)
1,600 sq ft, built 1978

Project Scope

Cold-climate air source heat pump: $12,500
Heat pump water heater: $3,200
Attic insulation + air sealing: $4,800
Total project cost: $20,500

Energy Model Result

42% whole-home energy savings (qualifies for 35%+ HOMES tier)

HEAR Rebates

Heat pump (LMI): $8,000
HPWH (LMI): $1,750
Insulation/air sealing (LMI): $1,600
Total HEAR: $11,350

HOMES Rebate (on net cost)

Net cost: $20,500 − $11,350 = $9,150
LMI, 35%+ savings = 50% rebate, capped at $8,000
50% × $9,150 = $4,575 (below cap)
HOMES rebate: $4,575

Total incentives: $15,925 | Client out-of-pocket: $4,575

Payback from oil savings ($3,500–$4,000/year): ~13 months

State-by-State HOMES + HEAR Combined Status

State	HEAR status	HOMES status	Notes
Massachusetts	Live	Live	Mass Save administers both; HERS rater for HOMES modeled path
New York	Live	Live	NYSERDA; pre-approval required for both; 3–5 week lead time
Maryland	Live	Live	MEA; pre-approval required; bundled application available
Michigan	Live (MiHER)	Live (MiHOMES)	EGLE; joint application available
Wisconsin	Live	Live	Focus on Energy; post-installation HOMES submission
Illinois	Live	Live	ICC; HERS rater or BPI BA; post-installation HOMES
Colorado	Live	Live	CEOS; pre-approval required; measured path more common
Georgia	Live	Pending	GEFA running HEAR first; HOMES framework in review
North Carolina	Live	Pending	NC DEQ running HEAR first
Indiana	Live	Pending	OED running HEAR first
New Mexico	Live (POS)	Pending	POS model creates HOMES complexity; pending DOE guidance
Pennsylvania	Targeting Aug 2026	Targeting Aug 2026	Penn Energy Savers plans both programs at launch

Common Mistakes

Installing before HOMES pre-approval (in NY, CO, MD) — results in hard denial with no appeal
Using pre-HEAR project cost as HOMES basis — overstates the rebate; creates audit risk
Modeling measures that aren't installed — HOMES auditors check invoices against the energy model; mismatches trigger denial
Submitting HOMES before HEAR is confirmed — creates ambiguity in net cost calculation; causes delays
Not budgeting the audit cost — $750–$2,000 for the energy model needs to be in the project proposal, not discovered afterward
Designing for HEAR only on a deep retrofit project — if the package is going to achieve 25%+ savings anyway, the HOMES rebate is effectively free money left on the table

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HEAR + HOMES Combined Rebates — 2026 Guide

Combined Rebate Amounts by Income Tier

HEAR vs. HOMES: Core Difference

What Projects Achieve 20%+ Savings for HOMES?

The 6-Step Combined Job Workflow

Worked Example: Rural Michigan LMI Household

Project Profile

Project Scope

Energy Model Result

HEAR Rebates

HOMES Rebate (on net cost)

State-by-State HOMES + HEAR Combined Status

Common Mistakes

Get weekly HEAR + HOMES practitioner updates

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