Homes and businesses make up one-third of climate warming greenhouse gas emissions in the United States. But the Biden Administration has pledged to change that — in large part through an $8.8 billion program meant to help homeowners pay for energy-saving upgrades.
Earlier this year, New York became the first state approved to receive a portion of those funds from the Inflation Reduction Act’s home energy rebate program. New York received an initial $158 million to implement a rebate program to help residents save money on insulation and energy-efficient electric appliances.
The funding expanded the state’s EmPower+ program, first announced in 2021, which provides incentives for weatherization, electrical upgrades, heat pumps, and heat pump water heaters — which all can help reduce the amount of energy a home uses. The new funding provides eligible low- and moderate-income New Yorkers up to $14,000 to pay for select, energy-saving home improvements.
Tens of thousands of New Yorkers are taking advantage of the program, according to a spokesperson for the state energy authority, NYSERDA.
Between January and November 2024, more than 28,000 home improvement projects were completed with the EmPower+ program, the spokesperson said. NYSERDA estimates the upgrades will result in over $10 million in total energy bill savings across those households.
Long-needed upgrades
John Graves, 79, has lived in Ithaca nearly his entire life, mainly in a two-storey white house in the city’s South Hill neighborhood. He said the home was built sometime in the 1800s, though the exact year is unknown.
Most modern-day homes in New York are built on top of insulation, like fiberglass or foam, and have barriers to prevent moisture and pollutants from seeping in from the dirt below. But Graves’s old house had few of those upgrades. Water would seep into his unfinished basement when it rained, and he worried about health effects of living so close to the dirt floor.
Graves knew that installing a material that would prevent moisture from seeping into the home, called a vapor barrier, would be useful. But for decades, the cost remained too high.
“Ever since we bought this house, like 30 years ago, my wife has said, let's get a vapor barrier on the dirt,” said Graves. “And we never did it.”
That changed this past summer. Graves began hearing about the new funding for home improvements and learned that he qualified. First, a local HVAC company came to his home to do an energy audit to determine where energy could be saved. Then, a few weeks later, they put foam insulation on the walls of the basement and in part of the attic, and installed the vapor barrier.
Graves estimates the project would have cost thousands of dollars, which he couldn’t afford. But with the new program, he didn’t have to pay.
“Because I qualified, it was free,” Graves said. It’s too early to tell if he’ll save money on heating this winter, he added, but his home already feels more comfortable.
Navigating the incentives
New York is eligible to receive $317.7 million from the federal government's home energy rebate program over the next several years.
To help homeowners access these incentives, NYSERDA has contracted with organizations across the state to provide energy-saving information to local residents.
In the Southern Tier, the Cornell Cooperative Extension has helped nearly 200 residents — including Graves — complete home energy upgrades this year, according to Eileen Hanrahan, a community energy advisor with the organization.
“We go to events, we go to food lines, we go anywhere where we feel that low- to moderate-income folks are going to be,” said Hanrahan. “We talk to them as much as possible.”
Hanrahan said she understands that dealing with government incentives isn’t always easy — people need to submit applications, wait to see if they qualify, and then find a contractor. Often, the contractors approved to work on these programs are overbooked.
But Hanrahan’s job is to streamline the process. She said she can help someone fill out an application in about five minutes, and she’ll also help connect them with a contractor.
“These programs get announced, but they don't say this is how you get to them,” said Hanrahan. “So that's why our job is critical.”
More funding to help New Yorkers reduce their home energy use became available last month when the state announced a new appliance upgrade program. The program provides up to $840 in rebates for eligible New Yorkers to replace clothes dryers with heat pump-powered alternatives, and additional incentives for electrical wiring and panel upgrades. Those rebates are available as coupons directly from certain retailers.
Since that program launched in November, NYSERDA has issued 93 rebate coupons, according to a department spokesperson.