A well-designed HVAC system is crucial for a comfortable and energy-efficient home, but it’s also a big investment. Everyone deserves the most efficient comfort solutions achievable, which is why HVAC rebates are so beneficial. They can help ensure 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. Various companies, organizations and even government entities are extending rebates in 2023 to help everyone secure a new, high-efficiency HVAC system.

Rebates for High-Efficiency Furnaces

Many manufacturers of high-efficiency furnaces offer rebates for a new system. These furnaces feature energy-efficient components like variable-speed blower motors, which enable the thermostat to optimize how much heating is generated. It’s an easy way to reduce energy use overall. Local utilities also share furnace rebates as less energy use means less strain on the local energy grid.

The government’s ENERGY STAR® program is also recommended for acquiring a furnace rebate. You can enter your ZIP Code to find out which rebates you may be approved for. Equipment with the ENERGY STAR® rating means it satisfies your region’s standards for energy-efficient operation.

Rebates for Air Conditioning Systems

Plenty 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 like Lennox. Just consult your local utility companies to verify which makes and models are eligible. Additionally, you can often combine 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 cooling system

Potential Rebates for Smart Thermostats

A smart thermostat is a particularly valuable upgrade 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. After some time, these rebates virtually enable you to get a free smart thermostat!

Local utility companies also provide programs where they swap discounted rates for the ability to adjust your thermostat during peak energy use. This helps reduce strain on the grid, namely when heat waves or cold fronts come through. When participating in this program, your thermostat may automatically be changed by a few degrees.

Additional Cost-Saving Options: Tax Credits for Energy-Efficient Equipment and Home Improvement Projects

Slightly different than 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 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 available for a much wider variety of projects, including home energy audits, electrical, insulation, ventilation, and even your doors and windows! The programs are fashioned to offer 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 specially geared toward heat pump technology, which transfers heat instead of generating it by combusting fuel. To encourage more people to transition to this energy-efficient comfort system, these rebates are substantially higher than incentives for AC systems and furnaces.

If a household’s income is below 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 average income can take care of 50% of equipment and installation costs.