A Guide to HVAC Rebates in 2023

November 27, 2022

A well-designed HVAC system is essential for a comfortable and energy-efficient home, but it’s also a big investment. You deserve the most effective comfort solutions possible, 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 increasing next year, so now’s an excellent time to compare your options. Various companies, organizations and even government entities are offering 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 extend rebates for a new system. These furnaces include energy-efficient components like variable-speed blower motors, which let the thermostat refine how much heating is released. It’s a fantastic way to decrease energy use overall. Local utilities also offer furnace rebates as less energy use means less strain on the local energy grid.

The government’s ENERGY STAR® program is also useful for securing a furnace rebate. You can submit your ZIP Code to see which rebates you may be eligible for. Equipment displaying the ENERGY STAR® rating means it meets your region’s standards for energy-efficient performance.

Air Conditioner Rebates

A lot of of the same rebates for high-efficiency furnaces are also applicable to air conditioners. You can save hundreds on new installation for a system from a leading brand like Lennox. Just consult your local utility companies to verify which makes and models are suitable. What’s more, you can easily bundle 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 air conditioner.

Obtainable Rebates for Smart Thermostats

A smart thermostat is an incredibly valuable upgrade to your home comfort system. With intelligent programming, you can fine-tune the daily schedule. Utility companies appreciate this kind of efficiency, and so most offer rebate programs for new smart thermostats. Over time, these rebates effectively permit you to get a free smart thermostat!

Local utility companies also offer programs where they swap discounted rates for the capacity to adjust your thermostat during peak energy use. This helps avoid strain on the grid, particularly when heat waves or cold fronts arrive. When registered in this program, your thermostat will automatically be adjusted by a few degrees.

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

Somewhat different from rebates, tax credits are also available 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 new credits are now worth 30% of the cost and can be claimed every year as opposed to only once. These credits are available for a much larger variety of projects, including 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 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 geared toward heat pump technology, which transfers heat instead of producing it by combusting fuel. To motivate more people to transition to this energy-efficient comfort system, these rebates are substantially higher than incentives for AC units and furnaces.

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