The 2026 Federal HEAR/HEEHR Rebate Rules Just Changed: What It Means for Gas & Electric Homes.
As of June 1, 2026 the $8.8 billion in funding is officially flowing again to the States, but the rules are changing. The Department of Energy [DOE] is “Removing program allowances for upgrades for fuel-switching (i.e. replacement of non-electric appliances) and instead allowing rebates for upgrading HVAC and appliances only from existing electric equipment to more efficient electric equipment.”
Source: https://www.energy.gov/cmei/scep/home-energy-rebates-program
In the States that already offer them….Here is how to claim under the new rule: Up to $14,000 in HEAR/HEEHR instant discounts (up to $8,000 for the heat pump itself—see full appliance breakdown here) for a reversible heat pump upgrade (ducted or ductless mini-split) — whether your heating system is an electric baseboard or a furnace (natural gas, liquid propane gas or heating oil):
| Existing System Type | Can You Use State HEAR/HEEHR instant Discounts? | The Strategy |
| Old Central AC + Gas/Propane/Oil Furnace | YES (The AC Upgrade) | Replace the dying AC (central or window) with a high-efficiency heat pump (ducted or ductless mini-split). Keep the furnace as a winter backup to create a smart Dual-Fuel system. |
| All-Electric Homes (Baseboards/Older Heat Pump) | YES (The Electric Upgrade) | Swap out old, inefficient electric heating elements for a modern heat pump to slash your winter bills. Improve the efficiency of your old AC (central or window). |
| Full Gas-to-Electric Conversion (Ripping out gas entirely) | NO (Using Federal Funds administered by the State). | Federal HEAR/HEERA funds administered by the State no longer cover removing gas lines. Your State or your Utility may offer other programs for full fuel switching. |
Practical implications
-DOE is changing the program name from “Home Electrification and Appliance Rebates” [HEAR] to “High-Efficiency Electric Home Rebates” [HEEHR]
-The newly issued DOE Program Notice 26-2 explicitly allows homes to retain their fossil-fuel furnaces.
Summer Performance for all homes. No change: The heat pump acts as a premium, ultra-efficient ducted or non ducted air conditioner.
Winter performance for all-electric homes. No change: Heat Pumps are 3x to 4x more efficient than electric baseboards resulting in huge energy savings.
Change: Winter Balancing for homes with furnaces burning natural gas, liquid propane gas or heating oil. The system can automatically shift between electric heat pump power on mild days and the furnace on freezing nights, optimizing both comfort and utility bills.
Note: Those State energy offices that have already launched a HEAR/HEEHR program have until September 1, 2026 to update their local HEAR/HEEHR portals to comply with these changes.
The DOE program notice 26-2 states: “Launched programs are required to make changes within three months of the publication of this Program Notice unless there are extenuating circumstances that require DOE approval beyond this time period. Any existing, approved rebate reservations under the previous program guidance are allowed to be executed, but no new rebate reservations are allowed or can be approved for projects that do not conform to the newprogram strategy.
Replacing a Water Heater too?” The same June 2026 guidelines apply to water heaters. If you have an old electric tank, you can use HEAR/HEEHR funds to upgrade to a high-efficiency Heat Pump Water Heater and get an instant discount up to $1,750. If you are currently on natural gas, liquid propane gas (LP) or heating oil, learn how to navigate your options over at our sister site, NewWaterHeaterDecisions.com
Ready to Claim Your Instant Discount?
Don’t Navigate the Rebate Maze Alone
State portals are rushing to update their software for the September 1 deadline. Tell us about your current heating and cooling setup below, and we will do the heavy lifting for you:
Step 1: We help you confirm your exact State HEAR/HEEHR instant discount eligibility.
Step 2: We check for additional stackable local utility rebates in your area.
Step 3: We match you with 3 qualified, participating local contractors for 100% free, no-obligation quotes.
Let’s see how close to free your upgrade can be! Fill out your setup details in the form below to get started.
By clicking “submit” on the form below, you provide your express written consent to be contacted by up to the 3 Contractors regarding your quote request for a Heat Pump. You agree to receive communications regarding a heat pump quote via phone, text, or email, including the use of automated technology, even if you are on a Do Not Call list. Consent is not a condition of purchase.