Low-income Arizona residents who need to replace their air conditioners with heat pumps could get a rebate for up to 100% of the cost of new equipment through Efficiency Arizona. The program launched on Aug. 29 to deploy funds from the Inflation Reduction Act.
Eligible homeowners can receive up to $8,000 in rebates from the program for a new heat pump, which can cover the full cost. The program involves replacing an air conditioner with a heat pump, which is a more energy-efficient alternative to an air conditioning unit. Heat pumps transfer heat instead of generating heat or cold, so they use less energy than a traditional system.
The Governor’s Office of Resiliency contracted with Resource Innovations to administer the rebate program. Resource Innovations will work with Wildfire, a community action agency, to identify eligible recipients and work with contractors to install the systems.
The program, called Efficiency Arizona , is funded by the U.S. Department of Energy’s Home Energy Rebates programs through funds from the Inflation Reduction Act.
“It’s not going to stop being hot here anytime soon, and cost should not be a barrier to keeping Arizonans safe and healthy,” Gov. Katie Hobbs said at an event announcing the program's launch.
Hobbs said residential cooling systems will continue to be strained during the summers, and hundreds of Arizona families will experience outages due to outdated equipment.
The installation of new heat pumps will prevent systems from breaking down and save recipients money on long-term energy bills, U.S. Deputy Energy Secretary David Turk said.
Wealthier Americans have been able to access savings associated with installing more energy-efficient appliances and systems, Turk said. However, the cost of a more efficient system could have been prohibitive for those who needed it most.
“This program is literally saving lives in addition to saving money,” Turk said.
About one in 10 Arizonans is cost-burdened by energy expenses, Turk said. A person is generally considered cost-burdened by energy expenses if they spend more than 6% of their income on it.
Heat pump rebates are the first phase of the Efficiency Arizona program. In the fall, the second phase will begin. It's a statewide rollout of the home retrofit program, offering a variety of energy efficiency rebates. The third phase begins during winter, a pilot program for multifamily properties aimed at improving energy efficiency.
California-based Resource Innovations will partner with the state to administer the program, working with Wildfire to track and distribute rebates. The company already had a large presence in Arizona, working with local utilities like APS, SRP and Southwest Gas on energy efficiency rebate programs, like those for smart thermostats and other technology.
Wildfire and its local community action agencies around the state will determine eligibility for rebates in the first phase, said Lauren Casentini, CEO of Resource Innovations. The first phase is designated for people who earn below 80% of the area median income for the full rebate and between 80% and 150% of the area median income for rebates up to 50% of the project cost.
The state has through 2031 to spend the money provided by the Inflation Reduction Act, said Dan Merchant, principal at Resource Innovations. The funding is expected to impact more than 23,000 households in Arizona and reduce their average annual energy burden by more than $763 per year.
Reach the reporter at cvanek@arizonarepublic.com . Follow her on X, formerly Twitter, @CorinaVanek .
This article originally appeared on Arizona Republic: Rebate program aims to improve Arizonan's access to efficient home cooling systems
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