More than Electrification: How Federal Rebate Programs Are Modernizing American Homes

Electrification, the process of switching systems running on fossil fuels, such as gas furnaces or propane water heaters, to systems running on electricity, has become a familiar concept, most visibly through the rise of electric vehicles. However, when it comes to homes, electrification programs are doing something far more practical than the name suggests.

APTIM has been working on behalf of the state of Wisconsin to deliver the Home Electrification and Appliance Rebates (HEAR) program since 2024 and has begun to gather valuable insights on how electrification programs function in practice.

Funded through the Inflation Reduction Act, HEAR helps low- and moderate-income families upgrade and modernize homes that have not seen significant improvements in decades. APTIM implements these programs across multiple states, and the story is consistent everywhere: these programs deliver safer, more efficient homes to the families who need them most.

The Challenge: Aging Housing Stock in the US

Much of the country’s housing stock was built before modern energy codes existed, when insulation standards were limited and long-term energy performance was not a primary consideration. For homeowners with resources, that may represent an inconvenience. For low- and moderate-income families, it can create ongoing challenges through homes that cost more to operate, are less comfortable, and may have outdated electrical systems that pose safety risks. These conditions contribute to higher energy burdens, where utility costs consume a disproportionate share of household income. That is the gap HEAR helps close.

What HEAR Actually Funds: A Modernization Toolkit

Look beyond the program name and examine what is eligible for rebates. HEAR functions as a comprehensive modernization toolkit focused on improving safety, efficiency, and affordability.

Electrical Panel & Wiring Upgrades

Older homes in lower-income neighborhoods frequently have outdated electrical panels and wiring that do not meet modern safety standards. Decisions to fund these upgrades are often driven by safety considerations rather than electrification.

Wisconsin data illustrates this clearly. Panel and wiring upgrades are the most common improvement, appearing in 62% of completed HEAR projects. Approximately 25% of those upgrades are directly related to safety concerns.

Nearly 20% of participating households have completed panel or wiring upgrades without pursuing additional projects. This indicates a significant portion of program funding is being used to address foundational safety issues in residential infrastructure.

High-Efficiency HVAC Systems

Many eligible households operate heating and cooling equipment that is 20 to 30 years old, often beyond its expected service life. When these systems are replaced through HEAR, the results can be significant.

In Wisconsin, 23% of heat pump installations replace electric resistance heating, propane, fuel oil, and other delivered fuels rather than natural gas. In these cases, heat pumps are often selected because they represent the most practical, cost-effective upgrade.

For homes using natural gas, approximately 83% of participants are choosing dual-fuel or hybrid systems. These configurations allow heat pumps to operate efficiently during milder temperatures, while existing natural gas systems provide support during colder conditions.

Insulation & Air Sealing

Homes across all climates often have gaps around windows, doors, and structural penetrations. These gaps allow conditioned air to escape, increasing energy needs.

Insulation and air sealing improvements are fuel-neutral solutions reducing energy use regardless of the heating or cooling systems in place. A well-sealed home requires less energy to operate and results in lower utility costs.

In Wisconsin, insulation and air sealing upgrades account for approximately 12% of completed HEAR projects, contributing to improved comfort and energy performance.

Ventilation & Indoor Air Quality

Poor ventilation can lead to persistent humidity, odors, allergens, and respiratory concerns. It is a health issue, and one disproportionately concentrated in older housing stock where adequate fresh air exchange was never part of the original design.

In Wisconsin, about 3% of HEAR projects have been ventilation upgrades. Although less common, these improvements can have meaningful impact on indoor air quality and occupant health. In some cases, simple upgrades, such as installing a bathroom exhaust fan, can significantly improve living conditions.

Who Benefits: Working Families

HEAR is an income-qualified program designed to serve low- and moderate-income households. These households often have the greatest need for upgrades and the fewest resources available to complete them.

In practice, this means:

Lessons Learned from Program Implementation

Wisconsin was one of the first states to launch the HEAR program. This early adoption has provided APTIM with valuable operational insights that have been applied across other states.

Across all programs, several consistent factors contribute to success:

While electrification is often discussed in policy terms, program implementation demonstrates these initiatives deliver practical outcomes such as improved safety, increased comfort, and reduced utility costs.

APTIM supports federal and state energy programs by providing program design, implementation, and operational management services. Our teams work with agencies, utilities, and contractors to deliver scalable energy efficiency and electrification programs that align with community needs.

Explore APTIM’s Rebate Program Management

Published April 2026