A quality HVAC system is crucial for a comfortable and energy-efficient home, but it’s also a major investment. You deserve the most efficient comfort solutions achievable, 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 climbing next year, so now’s an excellent 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.

Receive a Tax Rebate by Installing a High Efficiency Furnace

Numerous manufacturers of high-efficiency furnaces offer rebates toward the cost of a new system. These furnaces incorporate energy-efficient components like variable-speed blower motors, which let the thermostat refine how much heating is generated. It’s an easy 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 recommended for securing a furnace rebate. You can enter your ZIP Code to see which rebates you could be approved for. Equipment displaying the ENERGY STAR® rating means it satisfies your region’s standards for energy-efficient operation.

Rebates for Air Conditioning Systems

Many of the same rebates for high-efficiency furnaces are also applicable to air conditioners. You can save hundreds on new installation for equipment from a top brand like Lennox. Just consult your local utility companies to verify which makes and models are entitled. Additionally, you can often combine federal and local rebates for even higher savings. Don’t hesitate to learn what's out there, 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 improvement to your home comfort system. With intelligent programming, you can optimize the daily schedule. Utility companies can benefit from this degree of efficiency, and so most provide rebate programs for new smart thermostats. After some time, these rebates virtually enable you to get a free smart thermostat!

Your utility companies also provide programs where they exchange reduced rates for the capacity to access your thermostat during peak energy use. This helps avoid strain on the grid, especially when heat waves or cold fronts arrive. When registered in this program, your thermostat can automatically be adjusted by a few degrees.

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

Slightly different than rebates, tax credits are also available for the purchase and installation of energy-efficient HVAC equipment. 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 can be claimed every year as opposed to only once. These credits are obtainable for a much greater 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 nationwide.

New Legislation for Heat Pump Rebates

The recently passed Inflation Reduction Act contained 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 producing it by combusting fuel. To encourage more people to convert to this energy-efficient comfort system, these rebates are significantly higher compared to incentives for AC systems and furnaces.

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