Saving Money on Your System: A Guide to Rebates and Incentives

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When you’re looking for a new air conditioning or heating system, it is important to factor in the total cost of ownership, not just the initial sticker price. Here are a few points to consider:

  • Higher efficiency units cost more, but can result in more rebates, incentives. While higher efficiency systems often are priced higher, they also tend to come with greater rebates and government incentives.
  • Government agencies and power companies want you to be efficient. Government agencies and power companies want to encourage the use of higher efficiency equipment to help reduce power consumption during the summer cooling season. That is the time which most often stresses the ability of the local power plant to keep up with demand.
  • Incentives are offered by federal, state or local governments and utility companies and change frequently. These often come in the form of direct rebates, tax credits or tax deductions and can total more than $1,000 per system, depending on your geographic location and the type of system purchased.

TIP: Incentives for air conditioners and heat pumps are generally tied to efficiency ratings and performance.  The efficiency of air conditioning systems in the U.S. is measured by Seasonal Energy Efficiency Rating or SEER. Heat pumps are measured by Heating Seasonal Performance Factor or HSPFA higher SEER or HSPF number signifies higher efficiency.

Is it worth it? When trying to decide if a higher efficiency system with incentives is worth the cost, it’s helpful to calculate the expected payback, or time required before additional efficiency savings cover the cost of the unit. Using an app, such as e-Saver™ to calculate your payback can make the process quick and easy. Your exact payback will depend on the system cost, amount of incentive, cost of electricity, and your regional climate.

Did you know you can search online for rebates and incentives? Some of the best sources of information we’ve found to help search and keep track of incentives are:

These websites are searchable databases that also contain a lot of valuable information on policies that support renewable energy and energy-efficiency.

Discover the finance options for your new HVAC system here.

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31 thoughts on “Saving Money on Your System: A Guide to Rebates and Incentives

  1. Heating and AC Team wants to replace my AC with a Rudd 13 SEER 2 T Air Conditioner. Are there any rebate available

  2. I bought a new heating and air conditioner from Horizon and was told I qualified for a$500.00 rebate.They sent in paperwork and I am wondering when I can expect the rebate to be sent. I bought a new system on 5/22/18 .model #TEM6A0B24H21SA. Horizon. Heating&Air conditioning, LLC. Hendersonville,NC 28792

  3. I’M 68 AND ABOUT 50 YEARS AGO OR SO I THOUGHT IT WOULD BE MORE EFFICIENT TO HOOK UP A GASOLINE ENGINE CONVERTED TO NATURAL GAS AND HOOKED UP TO A GENERATOR. TO MAKE BOTH HEAT FOR THE HOUSE AND ELECTRICITY TO USE AND SELL EXCESS TO THE UTILITY COMPANY’S. WELL THAT’S ONE OF THE BEST THINGS GOING ON TODAY IN BOTH GERMANY BY VW MACHINES AND IN JAPAN BOTH HONDA AND YANMAR ARE DOING THIS BIG TIME WITH OVER 100 THOUSAND UNITS BUT ARE SHAFTING PEOPLE FOR MORE THAN THEY ARE WORTH BY SELLING THEM FOR BIG MONEY BY THE THERM.. AND IN GERMANY THE PEOPLE WHO ARE ON THE GROUND FLOOR ARE TRYING TO GET PEOPLE TO PAY FOR THE FOUNDER’S PROFFET’S PLUS MAKE ALL THE MONEY SELLING BACK TO THE UTILITY COMPANY’S..

  4. I purchased a new goodman air conditioning system and had it installed 10/1/2017. I was told it would qualify for midamerican energy rebate of $750. Now I am told no rebate will be coming for 1300 seer system. Why?

    • First, gather your outdoor unit model number, indoor equipment model number (furnace and coil or air handler unit). We then recommend using www.ahridirectory.com to download the equipment AHRI documents. You can typically use the utility website to view their available rebates and if your equipment meets their minimum efficiency requirements. You can usually submit your rebates directly if your equipment qualifies for the prescribed rebates.

      Also, the “Residential Energy Credits” (federal tax credit) for qualifying equipment was predated to 1/1/2017 and active through 12/31/2018. You can download IRS form 5695 and instructions to submit it with your taxes if you equipment efficiency is high enough.

  5. Hì I am Lan, 68 year old,
    I want to replace my old furnace and ÁC so rebates would go to my saving accout or tax Credit ..

  6. HI, I JUST INSTALLED A NEW DAIKON DUCTLESS HEAT AND AIR CONITIONER
    SYSTEM W/ 4 ROOM UNITS. IS THERE A REBATE PROGRAM FOR THIS AND
    WHERE WOULD I APPLY…I LIVE IN SOUTHERN NH. THANK YOU.
    LUIZ

    • Hi Luiz,

      Thank you for visiting the site. Please check out the DSIREUSA website to see if there are available incentives for your new system: http://www.dsireusa.org/

  7. Today, 12/18/17, I got a check from Energy Trust of Oregon for $500.00. Not sure if it’s real or not. No phone number on it so I can find out what’s it’s for. I did have a 3′ x 2′ window put in some time ago.

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