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, there are a few things to keep in mind to ensure you maximize your savings.
As an example, HVAC systems’ energy efficiency is getting higher, so you’ll want to check the minimum ratings to get a better idea of what’s energy efficient for your local climate. If you want to apply for these tax credits, your HVAC system needs to meet these criteria.
Air Engineers Service Experts can simplify things for you. By sharing details about local HVAC rebates online, it becomes quicker for homeowners to save money and time on this crucial utility. We’ll also aid you in locating the ideal make and model to ensure you benefit the most from heat pump incentives, AC incentives and more.
As solutions for climate control evolve, so do our standards for energy-efficient heating and cooling. There are specific 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 easily identify which models are eligible for rebates and tax credits.
Over the course of 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 regions, non-compliant AC and heat pump systems made before January 1, 2023, can still be sold and installed. However, in the Southeast and Southwest regions, non-compliant air conditioning systems are not allowed whatever their manufacture date. Non-compliant heat pumps made before January 1, 2023, can still be sold and installed in these areas.
Knowing these HVAC efficiency metrics 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 remove 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. Let’s explore how you can utilize these opportunities:
You can claim tax credits for various energy-efficient improvements such as HVAC systems and insulation as well as energy-efficient windows and doors. These credits help lower the overall cost of home energy upgrades, making it more affordable to improve your home’s efficiency.
This credit recoups 30% of eligible home improvements, up to $1,200 every year. This includes upgrades to heating and cooling systems, energy-efficient windows and doors, and insulation. By taking advantage of this incentive, you can upgrade to 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 Installations and Solar-Powered 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, spreading the use of renewable energy sources.
Heat Pumps: The Act also offers incentives for purchasing and installing energy-efficient heat pump systems. These credits can cover a significant portion of the cost, making heat pumps especially attractive for boosting your home’s heating and cooling efficiency. Heat pumps are extremely efficient and can greatly decrease your energy consumption and costs.
© 2024 Service Experts, Service Experts Heating & Air Conditioning, and the Service Experts logo and design are registered trademarks of Service Experts LLC and used under license by SE Canada Inc. All Rights Reserved. *Not applicable to the Advantage Program. See your signed Advantage Program Agreement for full details and exclusions. 100% Satisfaction Guarantee is subject to certain restrictions and limitations as set forth in the applicable Terms and Conditions.