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A reliable HVAC system is essential for a comfortable and energy-efficient home, but it’s also a major investment. Any homeowner deserves top-notch comfort solutions, regardless of their budget. That’s why HVAC rebates and other savings opportunities are so helpful. By tapping into rebates, tax credits and other programs, you can make new installation more affordable. But before you dive in, let’s review some things to ensure you maximize your savings.

As an example, the energy efficiency standards for HVAC systems are increasing, so it will help to check the minimum ratings to get a better idea of what’s an energy-efficient option for the climate. In order to be eligible for these tax credits, the HVAC system needs to meet these standards.

ÐÓ°É Heating, Air Conditioning & Plumbing can help simplify the process. By sharing details about local HVAC rebates online, it becomes easier for homeowners to save money and time on this crucial utility. We’ll also help you find the ideal make and model to ensure you benefit the most from heat pump rebates, AC rebates and more.

How New Regulations Impact Energy Efficiency Ratings and HCFC Refrigerant

As our HVAC systems evolve, so do our standards for what makes them energy efficient. There are distinct rating systems for heating and cooling units, and any models that are noncompliant 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.

HVAC Efficiency Standards

Every seven years, the U.S. Department of Energy updates the minimum efficiency regulations for HVAC systems. This time, there are new minimum efficiency standards homeowners should know. In Northern states, non-compliant AC and heat pump systems built before January 1, 2023, can still be sold and installed. Meanwhile, in the Southeast and Southwest regions, non-compliant air conditioning systems are off-limits 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 metrics is crucial for both manufacturers and homeowners:

• SEER and SEER2: Seasonal Energy Efficiency Ratio systems are for air conditioners, with the SEER2 ratings applying to newer AC systems. The minimum for both SEER and SEER2 ratings vary by region across the United States, with hotter southern climates requiring high efficiency ratings.
• EER: A similar system to SEER, EER ratings focus only on the electric capacity of an AC or heat pump, comparing the BTUs against energy output in watts.
• HSPF and HSPF2: HSPF stands for Heating Seasonal Performance Factor and measures energy use with heat pumps, with HSPF2 being the newest standard for more recent designs.
• AFUE: The Annual Fuel Utilization Efficiency system illustrates furnace efficiency by the amount of heat produced per dollar of fuel. Today’s minimum standards require an 81% AFUE rating or higher.

Minimum HVAC Efficiency Ratings for 2024

New EPA Refrigerant Regulations

A large part of why HVAC technology evolved 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 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.

Lower Up-Front Costs with Federal Tax Credits

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 take advantage of these opportunities:

• Home Energy Credits
• Home Energy Tax Credits

Home Energy Credits

You can claim tax credits for eligible energy-efficient improvements such as HVAC systems and insulation as well as energy-efficient windows and doors. These credits help lower the total cost of home energy upgrades, making it more affordable to boost your home’s efficiency.

Energy-Efficient Home Improvement Credit

This credit will cover 30% of eligible home improvements, up to $1,200 each year. This extends to heating and cooling systems, energy-efficient windows and doors, and insulation. By taking advantage of this incentive, you can invest in better home efficiency and enjoy long-term energy savings.

Federal Tax Credits and Deductions

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, reducing 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, encouraging the use of renewable energy sources.

Heat Pumps: The Act also covers incentives for installing energy-efficient heat pump systems. These credits 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 significantly reduce your energy consumption and costs.