A reliable HVAC system is vital for a comfortable and stress-free home, but it’s also a significant purchase. Each and every homeowner deserves top-notch climate control solutions, no matter their budget. That’s why HVAC rebates and other savings opportunities are so beneficial. By utilizing rebates, tax credits and various plans, you can make new installation more affordable. But before you get started, let’s review some things to ensure you maximize your savings.
For example, HVAC efficiency standards are getting higher, so you should check the minimum ratings to get a better understanding of what’s right for your local climate. If you want to apply for rebates and tax credits, the HVAC system needs to meet these standards.
Climate Control Service Experts can help simplify the process. By providing information about local HVAC rebates online, it becomes more convenient for homeowners to save money and effort on this crucial utility. We’ll also help you find the perfect make and model to ensure you benefit the most from heat pump incentives, AC incentives and more.
As our HVAC systems advance, so do our standards for energy-efficient heating and cooling. There are different rating systems for heating and cooling units, and anything failing to reach these standards can only be sold or installed if they were manufactured before the cutoff date. Use these rating systems to quickly identify which models are eligible for rebates and tax credits.
Every seven years, the U.S. Department of Energy updates the minimum efficiency requirements for HVAC systems. This time, there are new minimum efficiency standards that homeowners should keep in mind. In Northern states, non-compliant AC and heat pump systems finished before January 1, 2023, can still be sold and installed. Meanwhile, in the Southeast and Southwest regions, non-compliant air conditioning systems are prohibited regardless of their manufacture date. Non-compliant heat pumps made before January 1, 2023, can still be sold and installed in these areas.
Understanding HVAC efficiency ratings is essential for both manufacturers and homeowners:
Minimum HVAC Efficiency Ratings for 2024
Type of System | 2023 Minimum Rating (Northern) | 2023 Minimum Rating (South + Southeast) |
AC (<45,000 BTU/hr) | 14 SEER (13.4 SEER2) | 15 SEER (14.3 SEER2) |
AC (>45,000 BTU/hr) | 14 SEER (13.4 SEER2) | 14.5 SEER2 (13.8 SEER2) |
Split-system heat pump | 15 SEER (14.3 SEER2)
8.8 HSPF (7.5 HSPF2) |
15 SEER (14.3 SEER2)
8.8 HSPF (7.5 HSPF2) |
Single-package heat pump | No change | No change |
A large part of why HVAC technology improved was the need for safer, more efficient refrigerant. In the past, most air conditioners used something called R-22, more commonly known as Freon, for coolant. But this substance is a hydrochlorofluorocarbon (HCFC), which was found to damage the ozone. The US started to phase out HCFCs in the mid 1990s and passed the 2020 American Innovation and Manufacturing Act to speed up the replacement of HVAC equipment still using Freon and other HCFC refrigerants.
The Inflation Reduction Act of 2022 has made it easier for homeowners to save on new HVAC equipment and other energy-efficient upgrades. This is how you can utilize these opportunities:
You can claim tax credits for different energy-efficient improvements like HVAC systems and insulation as well as energy-efficient windows and doors. These credits help cut down the total cost of home energy upgrades, making it more affordable to enhance your home’s efficiency.
This credit will cover 30% of eligible home improvements, up to $1,200 annually. This extends to heating and cooling systems, energy-efficient windows and doors, and insulation. By using this incentive, you can invest in better home efficiency and enjoy sustained energy savings.
The Inflation Reduction Act of 2022 offers substantial financial incentives for certain energy upgrades, available through 2032. Homeowners can receive up to $3,200 annually, lowering the cost of energy-efficient home improvements by 30%.
Solar Energy Systems and Solar HVAC: With the Inflation Reduction Act, you can get a tax credit for 30% of the cost of installing clean energy systems like solar panels and solar-powered HVAC systems. This credit makes solar energy more available and affordable, promoting the use of renewable energy sources.
High-Efficiency Heat Pumps: The Act also includes incentives for purchasing and installing energy-efficient heat pump systems. incentives can cover a large part of the cost, making heat pumps an attractive option for boosting your home’s heating and cooling efficiency. Heat pumps are a particularly energy-efficient option and can greatly lower your energy consumption and costs.
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