HOMES Rebate Program Guide 2026

HOMES (Home Owner Managing Energy Savings) is the whole-home rebate program created by the Inflation Reduction Act alongside HEAR. While HEAR pays rebates per appliance installed, HOMES pays based on total whole-home energy savings — a fundamentally different model that rewards deep retrofits rather than single-measure replacements.

HOMES is less talked about than HEAR because it's harder to administer and most states haven't launched it yet. But for practitioners who do comprehensive energy audits and deep retrofits, HOMES is where the larger rebates are. This guide covers everything you need to know to use it effectively.

How HOMES Works: The Savings-Based Model

Under HEAR, a client gets a rebate because they installed an eligible appliance. Under HOMES, a client gets a rebate because their home uses less energy than it did before — measured in percentage reduction of whole-home energy consumption.

The program is called HOMES because the unit of analysis is the house, not the appliance. The question HOMES asks is: how much less energy does this house use after the retrofit? HEAR asks: which eligible items were installed?

This distinction matters for practitioners because:

• HOMES rewards the combination of improvements, not individual measures
• A project with modest equipment but excellent air sealing and insulation may qualify for more HOMES money than a heat pump-only swap
• HOMES requires energy modeling or measured data — it cannot be done without a pre/post assessment
• HOMES is inherently an energy auditor's program; HVAC contractors who don't do comprehensive assessments cannot qualify clients on their own

HOMES Rebate Amounts

Per-Unit Calculation

The amounts above are maximums. Actual HOMES rebates are calculated as:

• LMI households: Up to 80% of project cost, subject to the tier maximum ($4K or $8K)
• All other households: Up to 50% of project cost, subject to the tier maximum ($2K or $4K)

This means for HOMES to pay out at its maximum, the project cost must be at least $5,000 (for non-LMI Tier 1) up to $10,000 (for LMI Tier 2). Most comprehensive retrofits easily meet these thresholds.

Modeled vs. Measured Savings Pathways

HOMES allows two methods for calculating savings: modeled and measured. Which pathway your state uses — and which you choose — affects your workflow, timeline, and certainty of rebate payment.

What Projects Hit the Savings Thresholds

The 20% and 35% thresholds refer to whole-home energy reduction — usually measured in source energy (total energy including generation and distribution losses) or site energy (energy consumed at the building). Confirm with your state which metric they use.

Typical Savings by Project Type

The Homes That Hit 35%+ Most Reliably

• Pre-1980 construction in IECC Climate Zones 4–7 (Northeast, Midwest, Mountain West)
• Oil or propane heat with no existing HVAC efficiency improvements
• Air leakage rate above 8 ACH50 on blower door test
• Attic with R-19 or less insulation (most pre-1990 construction)
• No existing mechanical ventilation (common in older construction)
• Single-pane windows (still common in older rural housing)

Stacking HOMES with HEAR and 25C

The most common practitioner confusion: can you use both HOMES and HEAR on the same project?

Yes — with conditions. HOMES and HEAR can be applied to the same project, but they cannot cover the same costs. The rule is that any specific cost can only be covered by one program at a time.

How to Stack HOMES + HEAR Correctly

The practical approach:

1. Scope the project to include HEAR-eligible appliances (heat pump HVAC, HPWH, panel upgrade)
2. Apply HEAR rebates to those specific appliances at point of sale
3. Apply HOMES rebates to the remaining eligible costs — insulation, air sealing, labor, other envelope work — that are not covered by HEAR
4. Apply 25C credits to the net cost remaining after both HEAR and HOMES rebates

Example Stack — Deep Retrofit, Massachusetts LMI Household

On a $23,300 project, an LMI client ends up paying approximately $4,850 out of pocket — about 21% of total cost. That's what HOMES + HEAR stacking looks like in practice.

HOMES vs. HEAR: Which to Use When

Certification Requirements for HOMES

HOMES requires a qualified energy auditor to conduct the pre/post assessment and submit the energy model or measured data to the program. This is different from HEAR, which in most states does not require the installing contractor to have energy auditing credentials.

Accepted Credentials (Varies by State)

HOMES State Implementation Status

HOMES is launching alongside HEAR in most states, but some states have prioritized HEAR first. Here's the current landscape:

Practitioner HOMES Checklist

Before Proposing HOMES to a Client

• Confirm your state has HOMES launched and accepting applications
• Determine which pathway your state uses (modeled or measured)
• Verify your credential is accepted by the state program (BPI, RESNET, etc.)
• Run a preliminary energy model or assessment to estimate savings percentage — don't promise 35%+ without a calculation
• Identify whether the client is LMI (<80% AMI) — the rebate difference is 2x

For the Assessment

• Conduct blower door test (ACH50) — critical for air sealing improvement calculations
• Document current insulation levels in attic, walls, and basement/crawlspace
• Identify current heating/cooling system age and efficiency (AFUE, SEER, HSPF)
• Collect 12 months of utility bills for baseline (measured pathway requirement; useful even for modeled)
• Model pre/post energy use with proposed improvement scope
• If savings threshold is marginal (around 20% or 35%), consider adding low-cost measures (air sealing, programmable thermostat) to push over the line

For HOMES + HEAR Stacking

• Document which costs are covered by HEAR (appliance-specific) vs. HOMES (remaining eligible costs)
• Ensure no cost is claimed under both programs
• Process HEAR rebates at point of sale; submit HOMES application separately with energy model
• Calculate 25C credit on net cost after both HEAR and HOMES rebates are applied

Related Resources

• HEAR vs HOMES — Side-by-Side Comparison
• IRA HEAR & HOMES FAQ
• How to Enroll as a HEAR/HOMES Contractor
• State Tracker — HEAR & HOMES Program Status
• Best States for IRA Rebates — Ranked
• IRA Rebate Calculator
• Massachusetts — Top-Ranked HOMES State
• Colorado — Only State with Measured Pathway Live