How the Inflation Reduction Act and Rebate Programs Reward Energy-Efficient HVAC Upgrades
For homeowners, few things are more appealing than saving money on utility bills. And for many people, the best way to do that is to replace that clunky, outdated A/C, heat pump, or furnace with a new, more energy-efficient system. After all, HVAC systems consume more energy than any other appliance in the home - and older units tend to be much less efficient due to technological limitations and years of wear & tear.
Of course, not every homeowner is in a position to shell out for a new and improved HVAC system, but thanks to the Inflation Reduction Act signed into law in 2022 and additional tax rebates from companies, that’s about to change! This article will explain how the new bill and companies’ rebates can dramatically cut the cost of installing a new energy-efficient HVAC system - and the benefits that come along with it!
What is the Inflation Reduction Act, and How Can it Help?
The Inflation Reduction Act (IRA) is legislation designed to improve the economy and boost clean energy production. Among its many provisions are various programs that incentivize eco-friendly and energy-saving home improvements by offering tax credits and rebates on things like solar panels, electric vehicles, weather-proofing, appliance upgrades, and high-efficiency HVAC systems.
Homeowners can see massive savings by upgrading to an energy-efficient heating and cooling system - whether in the form of an immediate point-of-sale rebate or a tax credit that they can claim when they file their yearly taxes.
What Kind of Systems Qualify For Rebates and Tax Credits?
With the Inflation Reduction Act, heat pumps may be worth up to a $2,000 tax rebate, and gas furnaces and A/Cs up to $600. These incentives only apply to units installed after January 1, 2023 - so there’s no better time than now to upgrade!
Additionally, Lennox's consumer rebate program is available until February 3rd. It gives customers even greater savings of up to $1,700 when purchasing select systems. These rebates can be combined with the Inflation Reduction Act tax incentives of up to $2,000 for heat pumps and $600 for gas furnaces and A/Cs, so homeowners are now in a better position than ever to upgrade their HVAC systems. Keep in mind manufacturer rebates like this do expire. However, they’re often followed by seasonal rebate programs throughout the year. Check with The Meridian Company for current manufacturer offerings.
In addition to the already mentioned rebates and incentives, local energy companies DTE and BWL are also offering rebates for qualifying appliances like HVAC systems and electric vehicle charging stations. Consumers Energy is also offering rebates up to $1,050. Homeowners can take advantage of these incentives to upgrade their homes and save a significant amount of money with tax credits while saving on energy bills with new, more energy-efficient A/Cs, heaters, or heat pumps.
Benefits of Installing an Energy-Efficient HVAC System
Homeowners can enjoy tremendous savings by taking advantage of the tax credits and rebates offered by the IRA, Lennox, DTE, BWL, and Consumers Energy - but that’s not the only way they can save. Since qualifying systems are required to be highly energy efficient, homeowners will also see their energy bills go down with the new system.
Installing a new HVAC system or heat pump has many benefits for homeowners. It can help keep the home at a comfortable temperature throughout the year, save them money on energy costs, provide greater energy efficiency, and contribute to healthier indoor air quality.
About The Meridian Company
The Meridian Company is a family-owned and local business serving Lansing, MI, and the surrounding areas. They provide full-service solutions, superior customer service, and fast response. Call them today for EV charging station installation or A/C, heat pump, furnace, and heater installation in Lansing, MI.
