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, here are a few helpful tips to ensure you optimize your savings.
As an example, the energy efficiency standards for HVAC systems are getting higher, so you should check the minimum ratings to understand what’s best for the climate. To qualify for these tax credits, the HVAC system needs to meet these criteria.
Barlow Service Experts can help simplify things for you. By sharing details about local HVAC rebates online, it becomes quicker for homeowners to save funds and time on this crucial utility. We’ll also aid you in locating the perfect make and model to ensure you benefit the most from heat pump incentives, AC incentives and more.
As solutions for climate control improve, so do our standards for energy-efficient heating and cooling. There are specific rating systems for heating and cooling units, and noncompliant models can only be sold or installed if they were manufactured before the cutoff date. Use these rating systems to effortlessly identify which models are eligible for rebates and tax credits.
Every 7 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. However, in the Southeast and Southwest regions, non-compliant air conditioning systems are prohibited no matter their manufacture date. Non-compliant heat pumps manufactured before January 1, 2023, can still be sold and installed in these areas.
Better 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 deplete the ozone. The US started to eliminate 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. Here’s how you can utilize these opportunities:
You can claim tax credits for different energy-efficient improvements including HVAC systems and insulation as well as energy-efficient windows and doors. These credits help cut down the overall cost of home energy upgrades, making it more affordable to boost your home’s efficiency.
This credit allows you to cover 30% for the installation of eligible home improvements, up to $1,200 annually. This includes upgrades to heating and cooling systems, energy-efficient windows and doors, and insulation. By using this incentive, you can upgrade to better home efficiency and enjoy long-term energy savings.
The Inflation Reduction Act of 2022 offers considerable financial incentives for certain energy upgrades, available through 2032. Homeowners can receive up to $3,200 annually, cutting down the cost of energy-efficient home improvements by 30%.
Solar Energy System Installation 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 accessible and affordable, fostering the use of renewable energy sources.
High-Efficiency Heat Pumps: The Act also includes incentives for the installation of energy-efficient heat pump systems. incentives can cover a large part of the cost, making heat pumps especially attractive for improving your home’s heating and cooling efficiency. Heat pumps are extremely efficient and can greatly lower your energy consumption and costs.
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