A Guide to HVAC Rebates in 2023

November 27, 2022

A dependable HVAC system is crucial for a comfortable and energy-efficient home, but it’s also a significant investment. Everyone deserves the most effective comfort solutions possible, which is why HVAC rebates are so beneficial. They can help ensure high-efficiency furnaces, air conditioners and other equipment is more budget friendly.

HVAC efficiency standards are increasing next year, so now’s a great time to explore your options. Various companies, organizations and even government entities are promoting rebates in 2023 to help everyone acquire a new, high-efficiency HVAC system.

Rebates for High-Efficiency Furnaces

Many manufacturers of high-efficiency furnaces extend rebates toward buying 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 a fantastic way to decrease 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 recommended for securing a furnace rebate. You can enter your ZIP Code to see which rebates you may 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 applicable to air conditioners. You can save hundreds on new installation for a system from a top brand such as Lennox. Just talk to your local utility companies to learn which makes and models are suitable. In addition, you can usually bundle federal and local rebates for even greater savings. Don’t hesitate to find out what's all available, because it can quickly add up to 10% of a new, high-efficiency AC system.

Potential 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 level of efficiency, and so most provide rebate programs for new smart thermostats. In time, these rebates essentially enable you to get a free smart thermostat!

Local utility companies also create programs where they provide lower rates for the ability to control your thermostat during peak energy use. This helps minimize strain on the grid, namely when heat waves or cold fronts show up. When participating in this program, your thermostat can automatically be corrected by a few degrees.

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

Somewhat 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 updated 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 fashioned to share 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 referred to 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 producing it by burning fuel. To persuade more people to change to this energy-efficient comfort system, these rebates are considerably higher compared to incentives for AC units and furnaces.

If your household’s income is less 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 take care of 50% of equipment and installation costs.