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

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

Furnace Rebates Require High Efficiency Models

Numerous manufacturers of high-efficiency furnaces offer rebates for a new system. These furnaces feature energy-efficient components such as variable-speed blower motors, which enable the thermostat to refine how much heating is generated. It’s a great way to reduce energy use overall. Local utilities also offer furnace rebates because 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 type in your ZIP Code to learn which rebates you might be approved for. Equipment displaying the ENERGY STAR® rating means it meets your region’s standards for energy-efficient comfort.

Rebates for Air Conditioning Systems

A lot of 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 leading brand such as Lennox. Just check with your local utility companies to find out which makes and models are entitled. 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 air conditioner

Available Rebates for Smart Thermostats

A smart thermostat is a particularly valuable upgrade to your home comfort system. With intelligent programming, you can enhance the daily schedule. Utility companies appreciate this kind of efficiency, and so most extend rebate programs for new smart thermostats. Over time, these rebates effectively enable you to get a free smart thermostat!

Local utility companies also provide programs where they swap reduced rates for the capacity to control your thermostat during peak energy use. This helps avoid strain on the grid, particularly when heat waves or cold fronts show up. When registered in this program, your thermostat will automatically be changed by a few degrees.

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

Somewhat different compared to 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 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 as opposed to only once. These credits are available for a much wider variety of projects, such as home energy audits, electrical, insulation, ventilation, and even your doors and windows! The programs are fashioned to provide the most benefits for lower-income households, maximizing the improvements to HVAC efficiency across the country.

New Legislation for Heat Pump Rebates

The recently passed Inflation Reduction Act contained separate legislation called the High-Efficiency Electric Homes and Rebates Act, or HEEHRA. This incentive is particularly targeted 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 systems and furnaces.

If the 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 that meet 80-150% of the typical income can pay for 50% of equipment and installation costs.