A Guide to HVAC Rebates in 2023

November 27, 2022

A quality HVAC system is vital for a comfortable and energy-efficient home, but it’s also a significant investment. You deserve the most efficient comfort solutions achievable, which is why HVAC rebates are so worthwhile. They can help make sure high-efficiency furnaces, air conditioners and other equipment is more affordable.

HVAC efficiency standards are climbing next year, so now’s an excellent time to compare your options. Different companies, organizations and even government entities are offering rebates in 2023 to help everyone procure a new, high-efficiency HVAC system.

Rebates for High-Efficiency Furnaces

Numerous manufacturers of high-efficiency furnaces extend rebates toward buying a new system. These furnaces feature energy-efficient components such as variable-speed blower motors, which allow the thermostat to refine how much heating is generated. It’s a fantastic way to reduce energy use overall. Local utilities also offer furnace rebates as less energy use translates to less strain on the local energy grid.

The government’s ENERGY STAR® program is also useful for acquiring a furnace rebate. You can enter your ZIP Code to see which rebates you might be eligible for. Equipment with the ENERGY STAR® rating means it fulfills your region’s standards for energy-efficient performance.

Air Conditioner Rebates

Plenty of of the same rebates for high-efficiency furnaces are also suitable for air conditioners. You can save hundreds on new installation for efficient cooling from a leading brand such as Lennox. Just check with your local utility companies to verify which makes and models are entitled. Additionally, you can usually join federal and local rebates for even higher savings. Don’t hesitate to see what all you can find, because it can easily add up to 10% of a new, high-efficiency AC system.

Available Rebates for Smart Thermostats

A smart thermostat is an especially valuable addition to your home comfort system. With intelligent programming, you can enhance the daily schedule. Utility companies appreciate this kind of efficiency, and so most offer rebate programs for new smart thermostats. Over time, these rebates virtually enable you to get a free smart thermostat!

Your utility companies also create programs where they exchange lower rates for the capability to control your thermostat during peak energy use. This helps reduce strain on the grid, namely when heat waves or cold fronts come through. When enrolled in this program, your thermostat may automatically be changed by a few degrees.

Other Ways to Save: Tax Credits for Energy-Efficient Equipment and Home Improvement Projects

Slightly different from rebates, tax credits are also available for the purchase and installation of energy-efficient HVAC systems. For example, the Inflation Reduction Act reactivated a program in 2021 that offered credits for up to 10% of the project’s cost. The revised credits are now worth 30% of the cost and may be claimed every year instead of only once. These credits are eligible for a much greater variety of projects, like home energy audits, electrical, insulation, ventilation, and even your doors and windows! The programs are fashioned to provide the most benefits for lower-income households, maximizing the improvements to HVAC efficiency across the country.

New Legislation for Heat Pump Rebates

The recently passed Inflation Reduction Act incorporated separate legislation called the High-Efficiency Electric Homes and Rebates Act, or HEEHRA. This incentive is specially geared toward heat pump technology, which transfers heat instead of producing it by igniting fuel. To encourage more people to change to this energy-efficient comfort system, these rebates are significantly higher compared to incentives for AC units and furnaces.

If the household’s income is lower than 80% of the local median, you are able to use the rebates to cover 100% of the costs of a new heat pump. Households making 80-150% of the typical income can take care of 50% of equipment and installation costs.