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Home Energy Rebate Program FAQs

1. What is the Home Energy Rebate Program?

On Aug. 16, 2022, President Joseph R. Biden signed the landmark Inflation Reduction Act, which provides nearly $400 billion to support clean energy and address climate change, including $8.8 billion for the Home Energy Rebates.
These rebates — which include the Home Efficiency (HER) Rebates and Home Electrification and Appliance (HEAR) Rebates — will put money directly back in the hands of American households. The rebates can help you save money on select home improvement projects that can lower your energy bills.
The U.S. Department of Energy (DOE) estimates these rebates will save households up to $1 billion annually on energy bills and support over 50,000 U.S. jobs.

2. Who is eligible for the rebates?

New Mexico homeowners or renters who earn below 80% of Area Median Income (AMI) or who participate in certain benefit programs. Click HERE for a list of those programs. programs.


3. What is my Area Medium Income?

That amount is generally based on the income level in the county in which you live. You can find 2024 Income Limits for various counties HERE.


4. What does this program cover?

The program offers rebates for certain eligible electric appliances that are Energy-Star Certified, and/or energy efficient technologies. For more information click here.


5. When does this program begin?

We expect New Mexico’s program to start in the fall of 2024.


6. When does it end?

The program will end four years after launch.


7. I am interested in purchasing and having a heat pump or other energy-efficient appliance in my home. If I do so, will I be eligible for a rebate under this program?

Yes, if you meet the income limits. If you are eligible for the program, your cost of purchasing and installing a range of energy-efficient appliances, including heat pumps, are eligible for rebates up to certain limits. See the table below for details.
There are other rebates available, not displayed in this chart, for Home Efficiency measures like Energy Star windows.
Please note: To be eligible for the rebates, the qualifying appliances or technology must be installed by an authorized contractor.


Product Rebates: 

Upgrade Type Qualified Product Rebate Amount Not to Exceed
Appliance Heat Pump Water Heater $1,750
Heat Pump for Space Heating or Cooling $8,000
  Electric Stove, Cooktop, Range, Oven or Heat pump clothes dryer $840
Building Materials Electric load service center $4,000
Insulation, Air sealing and ventilation $1,600
  Electric wiring $2,500
Maximum Rebate $14,000



8.Where do I find a list of authorized installers for New Mexico?

ECMD will have a list available when the program launches in fall 2024.


9.What forms are necessary to apply for? And where do I find these forms?

An online application will be available when the program launches in fall 2024. Check back here for updates or subscribe to our newsletter here.


10.Do I pay full price for the energy efficiency measure (heat pump, insulation, etc.) and then have the State reimburse me the amount of my rebate?

No. Once your eligibility has been determined through the online application process, you will receive a coupon that you can present to a retailer or installer
when purchasing your items. The coupon will let the retailer or installer know they should deduct the amount of the rebate from your purchase price. You will have to pay any amount that exceeds your designated rebate.


11.Can the coupon also cover installation costs?

Yes. Once the coupon is issued, it can be used for both purchasing and installing appliances. Please note, however, that those combined costs may exceed the amount of the coupon. Any costs above the amount of the coupon, whether for purchase or installation—or a combination of the two—is the customer’s responsibility.


12. Do self-installation projects qualify for the rebates?

No. Projects must be installed by a program-certified installer to be eligible for the rebate.


13. I want to combine rebates for several different items. How much money is available for a household seeking home energy rebates?

The maximum allowable rebate per household is $14,000.


14. Is there a list of U.S. Department of Energy-approved technologies that can receive rebates?

The Program covers certain eligible electric appliances that are Energy-Star Certified and/or energy efficient technologies. For a partial list click HERE.
Because states will design programs to meet their local needs, there is not a national list of technologies that are eligible for Home Energy Rebates. The DOE Consumer Energy Savings Hub HERE.
Visit the EPA’s fact sheet HERE on ENERGY STAR certifications that are relevant to the Home Electrification and Appliance Rebates.


15.I need assistance. Where can I get answers to further questions?
For updates, check back on this website, or consider signing up for our newsletter here.
For more questions contact us here.


16.I am a contractor; how can I participate?

Existing contactors can be trained on how to participate in the rebate program. Contractors interested in installing heat pumps under this program must be certified by EPA and the NM Construction Industries Division. If a contractor is already qualified to conduct IRA Rebate measures, they should submit their qualifications to the Energy Conservation and Management Division to be considered as a qualified installer for the rebate program here.


17.I would like to get a job offering these services. What training and certifications do I need?

The energy transition provides an opportunity to create more high-paying jobs for New Mexico’s current and prospective workforce.
For New Mexicans interested in becoming first-time contractors, community colleges, unions, vendors, and apprenticeship programs are available to provide training.
A few programs including Training for Residential Energy Contractors (TREC) will offer entry-level training. TREC’s objectives include lowering training expenses for both new and existing home energy contractors, increasing the availability of training opportunities for underrepresented populations, and offering testing and certifications for contractors specializing in the installation of home energy efficiency and electrification technologies. We hope to launch the TREC program in the fall; check back here for updates or consider signing up for the newsletter here.
For further information, individuals can reach out to training facilities such as EnergySmart Academy at Santa Fe Community College which provides certification programs. Additionally, you may get access to free tuition as well as supplementary support services.


18.For more FAQ’s where can we go?

Please visit the DOE’s home rebates FAQ page here.