A Guide to HVAC Rebates in 2023

November 27, 2022

A quality HVAC system is vital for a comfortable and energy-efficient home, but it’s also a major investment. Every homeowner deserves the most efficient 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 budget friendly.

HVAC efficiency standards are climbing next year, so now’s an excellent time to compare your options. Various companies, organizations and even government entities are promoting rebates in 2023 to help everyone acquire a new, high-efficiency HVAC system.

Rebates for High-Efficiency Furnaces

Numerous manufacturers of high-efficiency furnaces provide rebates for a new system. These furnaces feature energy-efficient components like variable-speed blower motors, which let the thermostat fine-tune how much heating is generated. It’s a great way to decrease energy use overall. Local utilities also share furnace rebates because less energy use results in less strain on the local energy grid.

The government’s ENERGY STAR® program is also helpful for obtaining a furnace rebate. You can submit your ZIP Code to see which rebates you may be qualified for. Equipment featuring the ENERGY STAR® rating means it satisfies your region’s standards for energy-efficient operation.

Air Conditioner Rebates

Many of the same rebates for high-efficiency furnaces are also suitable for air conditioners. You can save hundreds on new installation for efficient cooling from a top brand such as Lennox. Just check with your local utility companies to verify which makes and models are entitled. In addition, you can usually combine federal and local rebates for even greater savings. Don’t hesitate to learn what's out there, 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 addition to your home comfort system. With intelligent programming, you can optimize the daily schedule. Utility companies highly value this level of efficiency, and so most offer rebate programs for new smart thermostats. After some time, these rebates essentially permit you to get a free smart thermostat!

Local utility companies also offer programs where they swap reduced rates for the ability to access your thermostat during peak energy use. This helps minimize strain on the grid, particularly when heat waves or cold fronts come through. When registered in this program, your thermostat can automatically be changed by a few degrees.

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

Somewhat different from 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 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 obtainable for a much wider variety of projects, like 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 especially geared toward heat pump technology, which transfers heat instead of generating it by combusting fuel. To motivate more people to change to this energy-efficient comfort system, these rebates are substantially higher than incentives for AC systems and furnaces.

If your household’s income is less than 80% of the local median, you can use the rebates to cover 100% of the costs of a new heat pump. Households meeting 80-150% of the average income can pay for 50% of equipment and installation costs.