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

HVAC efficiency standards are going up next year, so now’s an excellent 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.

Furnace Rebates Require High Efficiency Models

Lots of manufacturers of high-efficiency furnaces offer rebates toward buying 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 provide 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 acquiring a furnace rebate. You can enter your ZIP Code to see which rebates you could be approved for. Equipment featuring the ENERGY STAR® rating means it meets your region’s standards for energy-efficient operation.

Earning a Rebate for a High Efficiency Air Conditioner

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 leading brand such as Lennox. Just check with your local utility companies to find out which makes and models are suitable. What’s more, you can easily combine federal and local rebates for even higher 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 an incredibly valuable improvement to your home comfort system. With intelligent programming, you can enhance the daily schedule. Utility companies appreciate this degree of efficiency, and so most offer rebate programs for new smart thermostats. Over time, these rebates essentially enable you to get a free smart thermostat!

These utility companies also offer programs where they swap discounted rates for the capacity to access your thermostat during peak energy use. This helps minimize strain on the grid, namely when heat waves or cold fronts show up. When participating in this program, your thermostat may automatically be corrected by a few degrees.

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

Slightly 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 reactivated a program in 2021 that offered credits for up to 10% of the project’s cost. The revised credits are now worth 30% of the cost and can be claimed each year rather than only once. These credits are eligible for a much greater variety of projects, such as home energy audits, electrical, insulation, ventilation, and even your doors and windows! The programs are designed to offer the most benefits for lower-income households, maximizing the improvements to HVAC efficiency all over the country.

New Legislation for Heat Pump Rebates

The recently passed Inflation Reduction Act incorporated separate legislation called the High-Efficiency Electric Homes and Rebates Act, or HEEHRA. This incentive is especially aimed toward heat pump technology, which transfers heat instead of creating it by igniting fuel. To encourage more people to transition 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 below 80% of the local median, you could use the rebates to cover 100% of the costs of a new heat pump. Households making 80-150% of the typical income can pay for 50% of equipment and installation costs.