A Guide to HVAC Rebates in 2023

November 27, 2022

A dependable HVAC system is crucial for a comfortable and energy-efficient home, but it’s also a significant investment. Every homeowner deserves the most efficient comfort solutions possible, 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 ideal time to explore your options. Different companies, organizations and even government entities are extending rebates in 2023 to help everyone procure a new, high-efficiency HVAC system.

Rebates for High-Efficiency Furnaces

Many 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 enable the thermostat to optimize how much heating is produced. It’s a great way to reduce energy use overall. Local utilities also share furnace rebates as less energy use results in less strain on the local energy grid.

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

Air Conditioner Rebates

Many of the same rebates for high-efficiency furnaces are also useful for air conditioners. You can save hundreds on new installation for equipment from a leading brand such as Lennox. Just talk to your local utility companies to verify which makes and models are entitled. Additionally, 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 easily add up to 10% of a new, high-efficiency air conditioner.

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 can benefit from this degree of efficiency, and so most provide rebate programs for new smart thermostats. After some time, these rebates effectively enable you to get a free smart thermostat!

Your utility companies also provide programs where they exchange reduced rates for the capacity to control your thermostat during peak energy use. This helps reduce strain on the grid, especially when heat waves or cold fronts come through. When enrolled in this program, your thermostat may automatically be adjusted by a few degrees.

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

A little different than 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 offered credits for up to 10% of the project’s cost. The revised credits are now worth 30% of the cost and may be claimed every year as opposed to only once. These credits are available 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 provide 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 incorporated separate legislation known as 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 burning fuel. To motivate more people to convert to this energy-efficient comfort system, these rebates are substantially higher compared to incentives for AC units and furnaces.

If a 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 making 80-150% of the average income can take care of 50% of equipment and installation costs.