Single family homes, condominium owners and owners with four or fewer units can now get up to $8,000 to install a heat pump HVAC system.

It’s part of a new round of cuts funded by the Biden administration’s Inflation Relief Act. First round is still open and offers clean energy home retrofit rebates for a variety of appliances in low- and middle-income apartments.

Why it matters

Heat pumps can heat and cool your home and are extremely efficient, which means they can help you save hundreds of dollars a year on your electric bill. Heat pumps are up to five times more efficient than traditional heating and cooling systems, meaning they can provide five times more cooling or heating power than the electricity they consume.

And because they don’t burn fossil fuels (like a traditional gas furnace) and are much more efficient than traditional A/C units, heat pumps not only improve indoor quality, but can help significantly reduces climate pollution as more households install them.

These rebates aim to boost the adoption of heat pumps to fight climate change while helping people reduce their energy costs. So if your oven on gas or A/C is on the fritz, consider switching to a heat pump.

What do discounts cover?

As we said earlier, this is the second installment of new federal rebates to increase the adoption of clean energy appliances at home. This special rebate allows qualified single-family homes with incomes between $4,000 and $8,000 to install a heat pump HVAC system.

You can get the rebates upfront as an instant rebate or as a paper check from the contractor after installation.

Note that these discounts do not cover electrical panel upgrades, which may be required depending on your home. However, these discounts can be combined with other financial incentives. Learn more about state and local clean energy incentives at switchison.org and climateaction.ca.gov.

Who is eligible?

Low- and moderate-income single-family homes, as well as properties with four or fewer units — such as mobile homes, duplexes and apartments — are eligible.

Homeowners or renters making between 80% and 150% of the area median income can receive up to $4,000 for a heat pump HVAC system, and those making less than 80% of the area median income will be eligible for up to to $8,000.

For example, a household of four in Orange County with an income of $129,750 or less would be eligible for the $8,000 rebate and an income of $236,700 or less for the $4,000 rebate. An LA County household of four with an income of $110,950 or less would be eligible for the $8,000 rebate and an income of $208,050 or less for the $4,000 rebate. You can check your eligibility Here.

What if I’m a tenant?

In LA City, 63% of households rent their homes, as does 54% in LA County, according to US Census Bureau data.

Only the home or property owner can claim the rebate, however tenants can encourage their landlord to claim. If the homeowner pays the electric bill, let them know that this can help them save money. If they don’t, tell them it will help save you money, improve your indoor air quality, and increase their property value.

If you’re worried about a heat pump HVAC upgrade that will raise your rent, that’s true, and it’s something local nonprofits and researchers are working to address through policy (see our previous coverage of to this Here).

The LA City Council recently voted to eliminate a local provision that allows landlords to evict tenants in cases where “substantial renovation” work will take more than 30 days, which Tenant advocates applauded it as a necessary step to ensure tenants aren’t penalized with clean energy improvements.

As federal abatement rules currently apply, landlords and owners of low-income apartments or other rental properties receiving a qualified income abatement are not allowed to raise rents because of energy improvements or evict tenants for to rent at higher rents for at least two. years.

If you rent a property with more than four units, you can check our story about discounts available on a variety of clean appliancessuch as induction stoves and heat pumps.

How do I apply?

Only the owner or owner of the property can apply.

You can check your eligibility and apply for discounts Here. You need to work with a certified contractor that you can find Here.

What’s next?

President-elect Donald Trump has promised to “repeal” many of the clean energy cuts for consumers in the Biden administration’s Inflation Relief Act. California is still awaiting Energy Department approval for additional consumer rebate programs, so many of those rebates may be at risk under the Trump administration.

If you’re thinking about going solar, buying an electric vehicle, or needing to upgrade your electrical panel and want to take advantage of federal financial incentives, time is of the essence. Check this guide from the nonprofit Rewiring America to learn more about all the federal incentives available for clean energy home retrofits.

Other clean energy resources