Saving Money On Your HVAC System

Couple looking over paperwork on how they can save money on their energy bill

Originally published on April 18, 2017

A Guide to AC and Heating Rebates & Incentives

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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50 thoughts on “Saving Money On Your HVAC System

  1. I just installed a new havoc system. My old unit was original equipment installed 35 years ago. What local and federal rebates am I entitled to for replacing and updating my old unit?? My home is all electric.

  2. I contacted so cal Edison and SoCal gas twice to ask questions and have them send me an application for rebates on my new hvac and thermostat for $12,800 Rheem. I was told I would the application by mail. This was about three weeks ago. This was the second request. I have not received. This was purchased from Home Depot through their vendor. The old York was 23 years old and had many repairs. The unit was installed on 7/26 inspected by city 8/19 and paid by a wire transfer from my credit union.
    If the forms and rebates are available please forward to me.

    Thank you

  3. We are installing a System Performance solar from Pacific solar costing us about $23k. The company said energy tax credit is 30% $6,700. The PV system will produce 983kwh per month on average and will offset powebill of approximately $230per month. Is the EIC available for 2019 tax?

  4. In July 2018, we had a mini-split installed in our home by Reliance Kingston, ON. We were supposed to receive a rebate of $1,000. As of today, 27 Dec 2018, we have yet to receive our cheque. Speaking with Reliance, there were issues with paperwork. I was told in mid-November it is in your hands. I would like to know the status of the above.

    • I’m sorry but we do not manage rebates. We suggest contacting the rebate person/company with your completed paperwork to get a status update.

  5. My home is in bad need of new insolation, I was wondering if excel energy had assistants or rebates on this and the cost.
    Thank you Roxann

  6. Forget rebates. What Idaho Power requires, you won’t get with a $10,000.00 system. I know from my purchase Sept. 2017 with Home Heating & AC.

  7. I want to purchase a ac heat pump unit ,how do i get or apply for gov rebates and
    incentives in arlington texas?

    • Hello my name is
      I am struggling.
      I have no air conditioning in my house for the past 30 days.
      I even pay $$$200 just for freon to
      MR RUBEN Collazo 214-675-4345
      Four day later I call him back for more
      He never return my call..someone
      Else found out that there was a leak .. I need help.

      • It sounds like that guy ripped you off. Give him a bad Yelp review. If you are a home owner I encourage you to contact your local heating and cooling and see what their finance options are for replacing the unit if it is bad. But it may be just a simple fix.

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