A well-designed HVAC system is vital for a comfortable and energy-efficient home, but it’s also a major investment. You deserve the most productive comfort solutions possible, which is why HVAC rebates are so beneficial. They can help make sure 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. A variety of companies, organizations and even government entities are extending rebates in 2023 to help everyone procure a new, high-efficiency HVAC system.

Furnace Rebates Require High Efficiency Models

Numerous manufacturers of high-efficiency furnaces provide rebates toward buying a new system. These furnaces include energy-efficient components like variable-speed blower motors, which enable the thermostat to fine-tune how much heating is produced. It’s a great way to lower energy use overall. Local utilities also offer furnace rebates because less energy use translates to 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 might be qualified for. Equipment with the ENERGY STAR® rating means it fulfills 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 top brand like Lennox. Just consult your local utility companies to verify which makes and models are eligible. What’s more, you can often bundle federal and local rebates for even more savings. Don’t hesitate to see what all you can find, because it can easily add up to 10% of a new, high-efficiency air conditioner

Available Rebates for Smart Home Accessories Like Smart Thermostats

A smart thermostat is an especially valuable improvement to your home comfort system. With intelligent programming, you can optimize the daily schedule. Utility companies can benefit from this degree of efficiency, and so most offer rebate programs for new smart thermostats. Over time, these rebates essentially permit you to get a free smart thermostat!

These utility companies also create programs where they provide lower rates for the capacity to access your thermostat during peak energy use. This helps minimize strain on the grid, especially when heat waves or cold fronts come through. When enrolled in this program, your thermostat will automatically be corrected by a few degrees.

Additional Cost-Saving Options: High Efficiency Products and Home Improvement Credits

Slightly different than rebates, tax credits are also available for the purchase and installation of energy-efficient HVAC systems. For example, the Inflation Reduction Act restarted a program in 2021 that supplied credits for up to 10% of the project’s cost. The revised credits are now worth 30% of the cost and can be claimed every year instead of only once. These credits are available 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 offer the most benefits for lower-income households, maximizing the improvements to HVAC efficiency across the country.

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 targeted toward heat pump technology, which transfers heat instead of creating it by burning fuel. To motivate more people to change to this energy-efficient comfort system, these rebates are substantially higher compared to incentives for AC systems 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 making 80-150% of the average income can cover 50% of equipment and installation costs.