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 significant investment. Every homeowner deserves the most productive comfort solutions achievable, which is why HVAC rebates are so important. They can help guarantee high-efficiency furnaces, air conditioners and other equipment is more budget friendly.

HVAC efficiency standards are going up next year, so now’s an excellent time to explore your options. A variety of 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 the cost of a new system. These furnaces incorporate energy-efficient components such as variable-speed blower motors, which allow the thermostat to refine how much heating is produced. It’s a fantastic way to reduce energy use overall. Local utilities also provide furnace rebates as less energy use translates to less strain on the local energy grid.

The government’s ENERGY STAR® program is also helpful for obtaining a furnace rebate. You can submit your ZIP Code to find out which rebates you might be approved for. Equipment with the ENERGY STAR® rating means it satisfies your region’s standards for energy-efficient operation.

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 a system from a top brand like Lennox. Just check with your local utility companies to learn which makes and models are eligible. In addition, you can easily combine federal and local rebates for even higher savings. Don’t hesitate to see what all you can find, because it can quickly add up to 10% of a new, high-efficiency air conditioner.

Available Rebates for Smart Thermostats

A smart thermostat is an incredibly valuable improvement to your home comfort system. With intelligent programming, you can enhance the daily schedule. Utility companies can benefit from this degree of efficiency, and so most offer rebate programs for new smart thermostats. In time, these rebates effectively allow you to get a free smart thermostat!

Local utility companies also create programs where they swap reduced rates for the capacity to access your thermostat during peak energy use. This helps reduce strain on the grid, particularly when heat waves or cold fronts arrive. When enrolled in this program, your thermostat will automatically be corrected by a few degrees.

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

A little different compared to rebates, tax credits are also available for the purchase and installation of energy-efficient HVAC equipment. For example, the Inflation Reduction Act reactivated 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 instead of only once. These credits are available for a much larger variety of projects, such as home energy audits, electrical, insulation, ventilation, and even your doors and windows! The programs are tailored to provide 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 included separate legislation called the High-Efficiency Electric Homes and Rebates Act, or HEEHRA. This incentive is particularly targeted toward heat pump technology, which transfers heat instead of creating it by combusting fuel. To persuade more people to convert to this energy-efficient comfort system, these rebates are significantly higher compared to incentives for AC units and furnaces.

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