A quality HVAC system is vital for a comfortable and energy-efficient home, but it’s also a significant investment. Every homeowner deserves the most efficient comfort solutions possible, which is why HVAC rebates are so beneficial. They can help guarantee high-efficiency furnaces, air conditioners and other equipment is more affordable.

HVAC efficiency standards are increasing next year, so now’s a great time to check out your options. A variety of companies, organizations and even government entities are extending rebates in 2023 to help everyone acquire a new, high-efficiency HVAC system.

Rebates for High-Efficiency Furnaces

Numerous manufacturers of high-efficiency furnaces extend rebates toward the cost of a new system. These furnaces incorporate energy-efficient components like variable-speed blower motors, which enable the thermostat to fine-tune how much heating is produced. It’s an easy way to reduce energy use overall. Local utilities also offer furnace rebates because 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 see which rebates you may be approved for. Equipment displaying the ENERGY STAR® rating means it meets your region’s standards for energy-efficient comfort.

Air Conditioner Rebates

Many of the same rebates for high-efficiency furnaces are also useful for 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 eligible. What’s more, you can often bundle federal and local rebates for even greater savings. Don’t hesitate to find out what's all available, because it can easily add up to 10% of a new, high-efficiency air conditioner

Available Rebates for Smart Thermostats

A smart thermostat is an incredibly valuable addition to your home comfort system. With intelligent programming, you can enhance the daily schedule. Utility companies can benefit from this kind of efficiency, and so most extend rebate programs for new smart thermostats. Over time, these rebates virtually permit you to get a free smart thermostat!

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

Other Ways to Save: High Efficiency Products and Home Improvement Credits

Somewhat different compared to rebates, tax credits are also offered 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 updated credits are now worth 30% of the cost and may be claimed every year as opposed to 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 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 incorporated separate legislation referred to as the High-Efficiency Electric Homes and Rebates Act, or HEEHRA. This incentive is specially geared toward heat pump technology, which transfers heat instead of creating it by combusting fuel. To motivate more people to transition to this energy-efficient comfort system, these rebates are considerably higher compared to incentives for AC units and furnaces.

If the household’s income is less than 80% of the local median, you are able to 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.