California’s HOMES program—short for Home Efficiency Rebates—is a powerful new way for homeowners to earn energy rebates for making their entire home more efficient. Funded by the Inflation Reduction Act (IRA) and managed by the California Energy Commission (CEC), HOMES rewards Californians for reducing household energy use, with payouts based on actual energy savings.
The program officially received federal funding in January 2025 and is expected to launch later this year.
What Is the HOMES Program?
The HOMES program offers performance-based rebates to homeowners who improve their home's energy efficiency. Unlike HEEHRA, which focuses on specific appliances, HOMES takes a whole-home approach, providing incentives based on how much energy your upgrades actually save.
This means you can receive higher rebates for deeper retrofits—especially when combining multiple improvements like insulation, HVAC replacement, window upgrades, and air sealing.
How Much Are HOMES Rebates?
The value of your HOMES rebate depends on how much energy your project saves. California has split the funding into two main categories:
| Program Type | Funding Share | How It Works |
|---|---|---|
| Equitable Building Decarbonization Program | 60% | Targets low-income households and disadvantaged communities through direct-install services. |
| Pay-for-Performance Rebates | 40% | Offers incentives based on measured energy savings, open to a broader range of households. |
The more energy you save, the more you earn. Exact rebate amounts will vary and be finalized in 2025 when the program officially launches.
What Home Projects Will Qualify?
The HOMES program supports a variety of efficiency-focused energy upgrades, including:
- Whole-home insulation and air sealing
- Window and door upgrades
- High-efficiency HVAC systems
- Smart thermostats
- Comprehensive retrofits designed to lower your home’s total energy consumption
To maximize your rebate, combining multiple upgrades into a single project will likely yield better results.
See eligible equipment and upgrades →
Who Can Qualify for HOMES Rebates?
The HOMES program is open to all Californians, but rebate amounts will scale based on:
- How much energy your project saves
- Your household income (with additional incentives for lower-income households)
- Whether you live in a disadvantaged or underserved area
Check income limits and priority areas →
When Can You Apply for HOMES Rebates?
While HOMES rebates are not yet open, the California Energy Commission has already:
- Received a $291 million award from the U.S. Department of Energy (January 2025)
- Begun designing program details and rebate structures
- Scheduled implementation plans to begin rolling out in Spring and Summer 2025
To stay ahead of the launch, homeowners can start preparing by:
- Getting a home energy audit to identify potential improvements
- Contacting local contractors about whole-home upgrades
- Subscribing to program updates so you can apply as soon as it opens
Follow program status updates →
HOMES vs. HEEHRA: What's the Difference?
| Feature | HOMES | HEEHRA |
|---|---|---|
| Focus | Whole-home efficiency | Individual appliances and electrification |
| Based on Income? | No (but income impacts rebate size) | Yes (income-qualified only) |
| Rebate Type | Performance-based (energy saved) | Fixed amounts per upgrade |
| Status | Launching in 2025 | Phase I active, Phase II coming soon |
Want both? In some cases, households may qualify for both HOMES and HEEHRA, depending on income and upgrade type.
Final Thoughts
The HOMES program in California offers a huge opportunity to reduce your home’s energy use—and get paid to do it. Whether you're upgrading insulation, replacing an aging HVAC system, or overhauling your windows, this IRA-funded program could deliver thousands in energy incentives in 2025.
We’ll keep this page updated as the California Energy Commission finalizes its plans and opens applications. In the meantime, take steps now to get your home upgrade-ready and maximize your savings.