A well-designed HVAC system is crucial for a comfortable and energy-efficient home, but it’s also a major investment. Every homeowner deserves the most productive 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 increasing next year, so now’s a great time to compare your options. A variety of companies, organizations and even government entities are offering rebates in 2023 to help everyone acquire a new, high-efficiency HVAC system.

Rebates for High-Efficiency Furnaces

Lots of manufacturers of high-efficiency furnaces extend rebates toward the cost of a new system. These furnaces incorporate energy-efficient components such as variable-speed blower motors, which allow the thermostat to fine-tune how much heating is released. It’s a fantastic way to decrease energy use overall. Local utilities also share 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 obtaining a furnace rebate. You can enter your ZIP Code to see which rebates you may be approved for. Equipment with the ENERGY STAR® rating means it meets your region’s standards for energy-efficient operation.

Rebates for Air Conditioning Systems

Plenty of of the same rebates for high-efficiency furnaces are also useful for air conditioners. You can save hundreds on new installation for efficient cooling from a leading brand like Lennox. Just talk to your local utility companies to learn which makes and models are suitable. What’s more, you can usually combine federal and local rebates for even more savings. Don’t hesitate to learn what's out there, because it can quickly add up to 10% of a new, high-efficiency cooling system

2023's Rebates for Smart Thermostats

A smart thermostat is a particularly valuable upgrade to your home comfort system. With intelligent programming, you can optimize the daily schedule. Utility companies appreciate this kind of efficiency, and so most extend rebate programs for new smart thermostats. After some time, these rebates essentially enable you to get a free smart thermostat!

Local utility companies also provide programs where they exchange lower rates for the capacity to access your thermostat during peak energy use. This helps avoid strain on the grid, particularly when heat waves or cold fronts show up. When enrolled in this program, your thermostat will automatically be changed by a few degrees.

Other Incentives: Tax Credits for Energy-Efficient Equipment and Home Improvement Projects

Somewhat different from rebates, tax credits are also offered 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 instead of only once. These credits are eligible 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 nationwide.

New Legislation for Heat Pump Rebates

The recently passed Inflation Reduction Act contained 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 persuade more people to convert to this energy-efficient comfort system, these rebates are considerably higher compared to incentives for AC systems and furnaces.

If your household’s income is below 80% of the local median, you can use the rebates to cover 100% of the costs of a new heat pump. Households that meet 80-150% of the median income can take care of 50% of equipment and installation costs.