A Guide to HVAC Rebates in 2023

November 27, 2022

A quality 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 possible, which is why HVAC rebates are so worthwhile. They can help guarantee high-efficiency furnaces, air conditioners and other equipment is more affordable.

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

Rebates for High-Efficiency Furnaces

Lots of manufacturers of high-efficiency furnaces extend rebates toward buying a new system. These furnaces incorporate energy-efficient components such as variable-speed blower motors, which let the thermostat optimize how much heating is released. It’s a fantastic way to lower energy use overall. Local utilities also share furnace rebates because less energy use means less strain on the local energy grid.

The government’s ENERGY STAR® program is also useful 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 meets your region’s standards for energy-efficient comfort.

Air Conditioner Rebates

A lot of of the same rebates for high-efficiency furnaces are also applicable to air conditioners. You can save hundreds on new installation for efficient cooling from a top brand like Lennox. Just talk to your local utility companies to verify which makes and models are eligible. In addition, you can easily combine federal and local rebates for even higher savings. Don’t hesitate to learn what's out there, because it can quickly add up to 10% of a new, high-efficiency air conditioner.

Obtainable Rebates for Smart Thermostats

A smart thermostat is an especially valuable improvement to your home comfort system. With intelligent programming, you can optimize the daily schedule. Utility companies appreciate this kind of efficiency, and so most extend rebate programs for new smart thermostats. After some time, these rebates effectively allow you to get a free smart thermostat!

These utility companies also provide programs where they exchange discounted rates for the capability to control your thermostat during peak energy use. This helps avoid strain on the grid, namely when heat waves or cold fronts arrive. When participating in this program, your thermostat may automatically be changed by a few degrees.

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

A little different compared to rebates, tax credits are also promoted for the purchase and installation of energy-efficient HVAC equipment. 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 can be claimed each year instead of 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 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 called the High-Efficiency Electric Homes and Rebates Act, or HEEHRA. This incentive is especially 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 significantly higher than incentives for AC units and furnaces.

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