A Guide to HVAC Rebates in 2023

November 27, 2022

A well-designed HVAC system is vital for a comfortable and energy-efficient home, but it’s also a big investment. Every homeowner deserves the most effective comfort solutions available, which is why HVAC rebates are so worthwhile. They can help guarantee high-efficiency furnaces, air conditioners and other equipment is more budget friendly.

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

Rebates for High-Efficiency Furnaces

Numerous manufacturers of high-efficiency furnaces provide rebates toward buying a new system. These furnaces incorporate energy-efficient components such as variable-speed blower motors, which let the thermostat fine-tune how much heating is released. It’s a fantastic way to reduce energy use overall. Local utilities also provide furnace rebates since less energy use results in less strain on the local energy grid.

The government’s ENERGY STAR® program is also recommended for acquiring a furnace rebate. You can enter your ZIP Code to find out which rebates you may be approved for. Equipment displaying the ENERGY STAR® rating means it satisfies your region’s standards for energy-efficient performance.

Air Conditioner Rebates

A lot of of the same rebates for high-efficiency furnaces are also suitable for air conditioners. You can save hundreds on new installation for equipment from a top brand such as Lennox. Just talk to your local utility companies to learn which makes and models are suitable. In addition, you can often join federal and local rebates for even more savings. Don’t hesitate to see what all you can find, because it can quickly add up to 10% of a new, high-efficiency AC system.

Obtainable Rebates for Smart Thermostats

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

These utility companies also create programs where they swap lower rates for the capability to adjust your thermostat during peak energy use. This helps minimize strain on the grid, namely when heat waves or cold fronts come through. When registered in this program, your thermostat will automatically be adjusted by a few degrees.

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

A little different from rebates, tax credits are also promoted for the purchase and installation of energy-efficient HVAC equipment. For example, the Inflation Reduction Act restarted a program in 2021 that supplied credits for up to 10% of the project’s cost. The revised credits are now worth 30% of the cost and can be claimed each year as opposed to only once. These credits are obtainable for a much wider variety of projects, including home energy audits, electrical, insulation, ventilation, and even your doors and windows! The programs are fashioned to share the most benefits for lower-income households, maximizing the improvements to HVAC efficiency nationwide.

New Legislation for Heat Pump Rebates

The recently passed Inflation Reduction Act incorporated separate legislation known as the High-Efficiency Electric Homes and Rebates Act, or HEEHRA. This incentive is especially targeted toward heat pump technology, which transfers heat instead of generating 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 systems and furnaces.

If the household’s income is less than 80% of the local median, you could use the rebates to cover 100% of the costs of a new heat pump. Households meeting 80-150% of the median income can pay for 50% of equipment and installation costs.