New York on Thursday became the first state in the country to launch a federally backed rebate program aimed at making homes more energy efficient. 

Under the program, low-to-moderate income households will be able to access up to $14,000 for home upgrades, like installing air sealing, insulation and heat pumps. The Biden administration estimates that such upgrades could end up saving households hundreds of dollars each month on their utility bills.

What You Need To Know

  • New York is the first state to launch this rebate program, aimed at allowing more low-and-income families to make their homes more energy efficient

  • New York is set to receive $158 million for the initiative

  • The initiative is part of the Inflation Reducation Act, Democrats' signature climate legislation

New York has been allocated $158 million for the initiative. The funding is part of Democrats’ signature climate law, the Inflation Reduction Act, which President Joe Biden signed in 2022. 

In a statement, John Podesta, the senior advisor to the president for International Climate Policy, praised New York as “leading the way as the first of several states that will make these game-changing incentives available to their residents this summer and fall.”

So far, more than a dozen other states have also submitted applications to participate in the Home Energy Rebate program.

"Thanks to our strong partnership between New York State, the Biden Administration, and U.S. Department of Energy, we are making important progress to make the clean energy transition affordable for all New Yorkers,” Gov. Kathy Hochul said in a statement.

According to the Biden administration, New York is also working to launch another federally backed rebate program, also funded through the Inflation Reduction Act. It will provide eligible households up to $8,000 for projects that reduce energy usage by at least 20%.