The Inflation Reduction Act (IRA) Home Energy Rebates Program is a game-changer for Texas homeowners looking to upgrade their homes and cut energy costs. At Lex Air East Texas, we’re here to help break it down and ensure those eligible for rebates are able to upgrade their electrical and HVAC systems at a lower upfront cost.
The Home Energy Rebates Program incentivizes those looking to upgrade their heat pumps, water heaters, electrical panel upgrades, and more, allowing them to receive up to thousands of dollars in rebates. For many moderate and low-income households, this program makes it more affordable than ever to invest in energy-efficient systems that pay off in both comfort and cost savings.
If you want to upgrade your home’s HVAC system, contact the Tyler, TX, air conditioning installation professionals at Lex Air East Texas today. Our technicians will help you find a system that works for you. Our Tyler, TX, electricians can also help upgrade your home’s electrical system, allowing you to save money while upgrading your home.
Call (903) 833-9510 to schedule a free quote from a member of our team today.
Understanding the Inflation Reduction Act (IRA)
The Inflation Reduction Act (IRA) is a federal law passed in 2022 aimed at reducing greenhouse gas emissions, addressing climate change, and promoting clean energy initiatives. It includes significant investments in renewable energy, energy-efficient technologies, and tax incentives to encourage eco-friendly practices. The act also seeks to lower costs for consumers while boosting the economy through clean energy jobs and innovation.
How the IRA Can Help Texas Homeowners Save Money
Under the IRA, Texas homeowners may soon have access to rebate programs and tax credits for energy-efficient home upgrades, such as HVAC system replacements, improved insulation, and the installation of energy-efficient windows or heat pumps. The Home Energy Rebates Program offers direct financial incentives to certain qualifying homeowners in order to offset the upfront costs of some of these upgrades.
Over time, these energy-efficient improvements can help households save money on energy bills, making it an excellent opportunity for Texans to reduce energy costs while improving home comfort. 
Understanding the Home Energy Rebate Programs
The Home Energy Rebates programs, introduced under the Inflation Reduction Act (IRA), allow homeowners to receive rebates for certain home, HVAC, and electrification improvements that improve their household energy efficiency. Upgrading your home’s appliances to ENERGY STAR-certified appliances or upgrading the overall energy efficiency of your home could make you eligible for money back on your investment.
The rebates are typically higher for those with a lower to moderate household income and can apply to those in single and multifamily buildings. These programs not only help households save on energy bills but also contribute to the nationwide goal of reducing greenhouse gas emissions and enhancing energy independence.
What Are ENERGY STAR Appliances?
ENERGY STAR appliances are products certified by the U.S. Environmental Protection Agency (EPA) to meet strict energy efficiency standards. These appliances use less energy and water compared to standard models, helping homeowners increase their energy savings while decreasing their environmental impact. Common ENERGY STAR-certified appliances include refrigerators, dishwashers, washing machines, and HVAC systems.
How Do Rebates Work?
Rebates work by providing a partial refund or discount after you purchase a qualifying product or service. To take advantage of a rebate, you typically need to submit proof of purchase, like a receipt or invoice, along with a completed rebate application.
The Home Energy Rebates will function as point-of-sale rebates, meaning they will be applied instantly at the time of purchase and deducted from the total cost of the appliance, system, or service. These rebate programs can help make energy-efficient upgrades and other qualifying expenses more affordable.
Are the Home Energy Rebate Programs Available in Texas Yet?
No, the Home Energy Rebates are not available in Texas yet, as of August 2025, due to a pause in federal funding. In order to provide homeowners with these rebates, the federal government needs to grant funding to the Texas State Energy Conservation Office (SECO) under the IRA Home Energy Rebates Program. Then, SECO can launch the program in Texas.
Many state energy offices have applied to the Department of Energy (DOE) for funding. However, it has only approved funding for a handful of states and has only provided a handful of U.S. residents with rebates so far.
Texas has been approved for $5 million in early administrative funding for the Home Energy Rebates program. However, a pause in funding from the federal government has brought progress on the rebate program to a standstill. You can track the program through the Texas SECO website.
Can You Apply IRA Home Energy Rebates and Claim the Energy Efficient Home Improvement Credit on the Same Project?
Yes, those eligible can utilize both the Home Energy Rebates Programs and the Energy Efficient Home Improvement Credit (25C tax credit) on the same project, but there are specific rules to follow. While Home Energy Rebates allow certain homeowners to claim discounts on certain appliances upfront, the 25C tax credit then allows homeowners to claim a percentage of the remaining cost of qualifying upgrades on their tax returns.
If you were to upgrade your home with new appliances that qualify for both the rebate and the tax credit, you could maximize your savings while improving your home’s energy efficiency. However, it’s important that you keep detailed records, including receipts and any rebate documentation, and consult a tax professional to ensure you meet all requirements and don’t accidentally “double dip” on the same expenses.
Different Home Energy Rebate Programs You May Be Eligible For
If you are looking to make certain energy-efficiency improvements to your Texas home, you may be eligible for certain rebates under the Home Energy Rebates Program. Below are the eligibility requirements and how our HVAC and electrical professionals can help you.
Home Efficiency Rebates
The Home Efficiency Rebates offer financial incentives for homeowners who improve energy efficiency within their homes through things like better insulation, upgraded HVAC systems, or high-performance windows. To qualify for a Home Efficiency Rebate, you’ll need to have an energy audit performed to measure your home’s energy use before and after the upgrades.
Depending on the amount of energy savings achieved, you can receive rebates of up to $4,000, or up to $8,000 if you qualify as a low- or moderate-income household. Nearly all homeowners may qualify for home efficiency rebates, including those in single-family homes and multifamily buildings.
Home Electrification and Appliance Rebates
The Home Electrification and Appliance Rebate Program provides financial incentives for purchasing energy-efficient electric appliances and making home electrification upgrades. These rebates are income-based, with households earning less than 150% of the area median income (AMI) qualifying for the largest benefits.
Depending on your eligibility, you can receive upfront discounts of up to $14,000 to help cover the costs of upgrades on qualifying equipment like heat pumps, water heaters, and electrical panel upgrades. Below are some of the key appliances that you can save money on.
HVAC Heat Pump Rebate
Depending on your income level, you can qualify for rebates of up to $8,000 to offset the cost of purchasing and installing a new heat pump. This rebate makes it easier to upgrade to a system that can help you save money on the heat pump as well as save money on energy bills.
If you are interested in upgrading your home’s heat pump, contact the Tyler heat pump installation professionals at Lex Air East Texas today.
Heat Pump Water Heater Rebate
If you are under the median income in your income, you can qualify for rebates of up to $1,750 to help cover the cost of purchasing and installing a heat pump water heater, reducing both upfront expenses and long-term energy bills.
Looking for heat pump water heater installation services in Tyler? Look no further than the professionals at Lex Air East Texas. We can help determine whether or not you qualify for the rebate and can install the new water heater, allowing you to save money and save energy.
Electrical Wiring and Electrical Panel Upgrade Rebate
Homeowners below a certain income level can receive up to $2,500 for electrical wiring upgrades and up to $4,000 for electrical panel upgrades. These incentives make it easier to transition to energy-efficient systems and ensure your home’s electrical infrastructure is safe and reliable.
If you are interested in having your home’s wiring system updated, hire Lex Electric for our whole home rewiring services in Tyler. Additionally, we also provide electrical panel installation in Tyler, allowing you to make electrification improvements to your home without breaking the bank.
Let the Team at Lex Air East Texas Increase Your Home’s Energy Efficiency Today
Upgrading your home’s energy efficiency is a smart investment that can help you save energy and enhance your comfort. At Lex Air East Texas, we’re here to make the process simple and affordable for homeowners in Tyler, TX, and the surrounding areas.
Whether you’re looking to upgrade the electrical equipment in your single-family home or the HVAC equipment in a multifamily building, we can help you maximize your savings through the Inflation Reduction Act.
Ready to get started? Call us at (903) 833-9510 or contact us online to receive a quote or to learn more about how we can help.