A Guide to HVAC Rebates in 2023

November 27, 2022

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

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

Rebates for High-Efficiency Furnaces

Many manufacturers of high-efficiency furnaces provide rebates for a new system. These furnaces incorporate energy-efficient components like variable-speed blower motors, which enable the thermostat to refine how much heating is released. It’s an easy way to reduce energy use overall. Local utilities also share furnace rebates since less energy use translates to less strain on the local energy grid.

The government’s ENERGY STAR® program is also helpful for acquiring a furnace rebate. You can enter your ZIP Code to learn which rebates you could be qualified for. Equipment displaying the ENERGY STAR® rating means it meets your region’s standards for energy-efficient comfort.

Air Conditioner Rebates

Plenty of of the same rebates for high-efficiency furnaces are also useful for air conditioners. You can save hundreds on new installation for equipment from a top brand like Lennox. Just check with your local utility companies to learn which makes and models are suitable. In addition, you can often combine federal and local rebates for even greater 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.

Potential 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 appreciate this level of efficiency, and so most provide rebate programs for new smart thermostats. After some time, these rebates essentially permit you to get a free smart thermostat!

These utility companies also create programs where they exchange lower rates for the capability to control your thermostat during peak energy use. This helps reduce strain on the grid, especially when heat waves or cold fronts arrive. When participating 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 from rebates, tax credits are also promoted for the purchase and installation of energy-efficient HVAC systems. For example, the Inflation Reduction Act reactivated 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 each year as opposed to only once. These credits are available for a much larger variety of projects, like 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 known as the High-Efficiency Electric Homes and Rebates Act, or HEEHRA. This incentive is particularly geared toward heat pump technology, which transfers heat instead of generating it by igniting fuel. To persuade more people to convert to this energy-efficient comfort system, these rebates are substantially higher than incentives for AC units and furnaces.

If a household’s income is lower than 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 median income can pay for 50% of equipment and installation costs.