A quality HVAC system is crucial for a comfortable and energy-efficient home, but it’s also a major investment. You deserve the most effective comfort solutions achievable, which is why HVAC rebates are so important. They can help ensure 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. Various companies, organizations and even government entities are offering rebates in 2023 to help everyone secure a new, high-efficiency HVAC system.

Furnace Rebates Require High Efficiency Models

Numerous manufacturers of high-efficiency furnaces provide 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 produced. It’s an easy way to lower energy use overall. Local utilities also offer furnace rebates since less energy use translates to less strain on the local energy grid.

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

Rebates for Air Conditioning Systems

Plenty 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 consult your local utility companies to find out which makes and models are suitable. In addition, you can often bundle federal and local rebates for even more savings. Don’t hesitate to find out what's all available, because it can quickly add up to 10% of a new, high-efficiency cooling system

Available Rebates for Smart Thermostats

A smart thermostat is a particularly valuable addition to your home comfort system. With intelligent programming, you can optimize the daily schedule. Utility companies highly value this level of efficiency, and so most provide rebate programs for new smart thermostats. In time, these rebates essentially permit you to get a free smart thermostat!

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

Additional Cost-Saving Options: Tax Credits for Energy-Efficient Equipment and Home Improvement Projects

Slightly different compared to rebates, tax credits are also offered 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 every year rather than only once. These credits are available for a much greater variety of projects, including home energy audits, electrical, insulation, ventilation, and even your doors and windows! The programs are tailored to offer the most benefits for lower-income households, maximizing the improvements to HVAC efficiency all over the country.

New Legislation for Heat Pump Rebates

The recently passed Inflation Reduction Act included separate legislation known as the High-Efficiency Electric Homes and Rebates Act, or HEEHRA. This incentive is particularly targeted toward heat pump technology, which transfers heat instead of producing it by igniting fuel. To motivate more people to transition to this energy-efficient comfort system, these rebates are significantly higher versus incentives for AC systems and furnaces.

If a household’s income is below 80% of the local median, you could 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.