A Guide to HVAC Rebates in 2023

November 27, 2022

A dependable HVAC system is vital for a comfortable and energy-efficient home, but it’s also a significant investment. You deserve the most efficient comfort solutions achievable, 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. Different 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

Numerous manufacturers of high-efficiency furnaces provide rebates toward the cost of a new system. These furnaces feature energy-efficient components like variable-speed blower motors, which enable the thermostat to fine-tune how much heating is produced. It’s an easy way to lower 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 acquiring a furnace rebate. You can submit your ZIP Code to find out which rebates you might be approved for. Equipment featuring the ENERGY STAR® rating means it satisfies your region’s standards for energy-efficient operation.

Air Conditioner Rebates

Plenty of of the same rebates for high-efficiency furnaces are also applicable to air conditioners. You can save hundreds on new installation for a system from a leading brand like Lennox. Just talk to your local utility companies to find out which makes and models are entitled. Additionally, you can often join federal and local rebates for even greater savings. Don’t hesitate to find out what's all available, because it can quickly add up to 10% of a new, high-efficiency AC system.

Available Rebates for Smart Thermostats

A smart thermostat is an incredibly valuable improvement 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. In time, these rebates effectively allow you to get a free smart thermostat!

Your utility companies also create programs where they provide discounted rates for the capability to access your thermostat during peak energy use. This helps reduce strain on the grid, especially when heat waves or cold fronts come through. When registered in this program, your thermostat can automatically be corrected by a few degrees.

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

Somewhat different than 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 may be claimed each year rather than only once. These credits are obtainable for a much larger variety of projects, like home energy audits, electrical, insulation, ventilation, and even your doors and windows! The programs are designed to provide 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 contained 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 igniting fuel. To encourage more people to transition to this energy-efficient comfort system, these rebates are substantially higher than incentives for AC units and furnaces.

If the 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 meeting 80-150% of the median income can cover 50% of equipment and installation costs.