A Guide to HVAC Rebates in 2023

November 27, 2022

A dependable HVAC system is vital for a comfortable and energy-efficient home, but it’s also a major investment. Everyone deserves the most productive 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 going up next year, so now’s an ideal time to check out your options. A variety of companies, organizations and even government entities are extending rebates in 2023 to help everyone acquire a new, high-efficiency HVAC system.

Rebates for High-Efficiency Furnaces

Lots of 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 refine how much heating is produced. It’s a fantastic way to lower energy use overall. Local utilities also provide furnace rebates because 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 type in your ZIP Code to learn which rebates you could be qualified for. Equipment with 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 efficient cooling from a top brand such as Lennox. Just consult your local utility companies to verify which makes and models are entitled. What’s more, you can often combine federal and local rebates for even greater savings. Don’t hesitate to find out what's all available, because it can easily add up to 10% of a new, high-efficiency air conditioner.

Available Rebates for Smart Thermostats

A smart thermostat is a particularly valuable addition to your home comfort system. With intelligent programming, you can fine-tune the daily schedule. Utility companies appreciate this degree of efficiency, and so most extend rebate programs for new smart thermostats. Over time, these rebates essentially allow you to get a free smart thermostat!

These utility companies also provide programs where they provide discounted rates for the ability 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 registered in this program, your thermostat will automatically be corrected by a few degrees.

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

Somewhat different compared to rebates, tax credits are also promoted for the purchase and installation of energy-efficient HVAC systems. For example, the Inflation Reduction Act restarted a program in 2021 that provided credits for up to 10% of the project’s cost. The updated credits are now worth 30% of the cost and may be claimed every year rather than only once. These credits are obtainable for a much larger variety of projects, like 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 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 particularly aimed toward heat pump technology, which transfers heat instead of generating it by burning fuel. To persuade more people to transition to this energy-efficient comfort system, these rebates are considerably higher versus incentives for AC systems and furnaces.

If the 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 that meet 80-150% of the average income can cover 50% of equipment and installation costs.