Rebates & Incentives

Thinking about replacing your old central AC system or even installing a new one?

Need to replace your old gas or oil furnace or boiler?

You should consider a new central or ductless heat pump and save

UP TO $7000 OFF THE INSTALLATION!

0% Financing Available

Additional Information about the rebates and incentives:

 

UP TO $2000 FEDERAL TAX CREDIT

The Inflation Reduction Act (IRA), signed into law in August 2022, includes provisions to combat climate change, promote energy efficiency, and reduce greenhouse gas emissions. A key part of the IRA is its focus on incentivizing homeowners and businesses to adopt energy-efficient technologies, including heating, ventilation, and air conditioning (HVAC) systems.

How It Relates to HVAC

The IRA expands and enhances tax credits and rebates for energy-efficient home improvements, including HVAC systems. It aims to encourage the adoption of technologies that reduce energy use and reliance on fossil fuels.

Key Points for HVAC:

  1. Federal Tax Credit for Energy-Efficient HVAC Systems (Section 25C):
    • Energy Efficient Home Improvement Credit: Homeowners can claim a 30% federal tax credit for purchasing and installing eligible energy-efficient HVAC systems, up to $1,200 annually.
    • Specific limits apply:
      • Up to $600 for qualifying air conditioners or furnaces.
      • Up to $2,000 for heat pumps, heat pump water heaters, and biomass stoves.
    • The credit resets each tax year, meaning homeowners can spread their upgrades over several years to maximize benefits.
  2. Electrification and Renewable Energy Incentives:
    • The IRA strongly promotes heat pumps, which are energy-efficient systems that provide both heating and cooling by transferring heat rather than generating it.
    • Heat pumps may qualify for the higher $2,000 credit limit, reflecting their importance in reducing energy consumption.
  3. Incentives for Contractors:
    • The IRA provides additional support for HVAC contractors, including training and certification for installing energy-efficient systems, further boosting industry adoption.

 

How Homeowners Benefit

  • Homeowners upgrading to energy-efficient systems not only save on installation costs due to tax credits and rebates but also reduce energy bills and carbon footprints over time.
  • The IRA encourages a switch from traditional gas-powered systems to more efficient electric-based HVAC options, like heat pumps.

If you're considering upgrading HVAC systems, it’s worth reviewing the specific qualifications for credits, as the system must meet certain energy efficiency standards defined by the U.S. Department of Energy.

UP TO $5000 PSEG ENERGY REBATE

PSEG Long Island offers the Whole Home Heat Pump Program to encourage homeowners to install energy-efficient air source heat pump (ASHP) systems. This program provides rebates based on the heating capacity of the installed system, measured in tons (where 1 ton equals 12,000 BTU).

Rebate Structure:

  • Standard Rate:
    • First 4 Tons: $1,000 per ton
    • Tons 5 and 6: $500 per ton

Example: Installing a 3-ton system would yield a rebate of $3,000.

  • Income-Eligible Rate: Enhanced rebates are available for qualifying households.
    • 1st Ton: $4,000
    • 2nd Ton: $3,000
    • 3rd Ton: $2,000
    • 4th Ton: $1,000
    • 5th and 6th Tons: $500 per ton

Example: A 3-ton system for an income-eligible household would qualify for a $9,000 rebate.

Eligibility and Requirements:

  • Participating Contractors: To qualify for these rebates, installations must be performed by contractors participating in PSEG Long Island's Home Comfort Program.
  • Income Eligibility: Enhanced rebates are available for households meeting specific income criteria. For instance, a single-person household with a gross annual income up to $39,864 may qualify. Income limits increase with household size.
  • Equipment Standards: Installed heat pumps must meet specific efficiency standards, particularly their heating capacity at 17°F, as outlined by PSEG Long Island.

Application Process:

  1. Consultation: Engage with a participating contractor to assess your home's heating and cooling needs.
  2. Verification: If applying for income-eligible rebates, provide necessary income documentation to confirm eligibility.
  3. Installation: The contractor will install the qualifying heat pump system.
  4. Rebate Submission: After installation, the contractor typically assists in submitting the rebate application on your behalf. Check is then sent to customer home from PSEG, after installation and application is complete. 

For comprehensive details, including finding participating contractors and understanding the full eligibility criteria, please visit PSEG Long Island's official Home Comfort Program page.

See below details and pictures describing ductless and ducted heat pump systems…..

what are heat pumps
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why heat pumps

The difference between ducted and ductless heat pumps lies in how they deliver heating and cooling to your home. Here’s a breakdown:

Ducted Heat Pumps

  • How They Work:
    • Use a network of ducts to distribute air throughout the home, similar to traditional HVAC systems.
    • Conditioned air flows through vents connected to a centralized system.
  • Best Suited For:
    • Homes with existing ductwork (e.g., replacing a central HVAC or furnace system).
    • Larger homes or spaces requiring even temperature distribution across multiple rooms.
  • Advantages:
  1. Whole-home comfort: Provides consistent heating and cooling across all rooms.
  2. Aesthetic appeal: Hidden ducts mean no visible indoor units in living spaces.
  3. Retrofitting: Can be installed in homes with pre-existing ductwork, reducing costs.
  • Challenges:
    1. Requires duct installation if none exists, which can be costly and disruptive.
    2. Energy loss through ducts if they are not well-sealed or insulated.

Ductless Heat Pumps (Mini-Splits)

  • How They Work:
    • No ductwork is needed. They consist of an outdoor unit and one or more indoor units (called air handlers) that directly heat or cool individual rooms.
    • Each indoor unit is mounted on a wall or ceiling and connected to the outdoor unit via refrigerant lines.
  • Best Suited For:
    • Homes without existing ductwork.
    • Additions, renovations, or spaces where installing ducts is impractical.
    • Zoned heating and cooling (custom temperatures for different rooms).
  • Advantages:
  1. Energy efficiency: Avoids energy loss through ducts, improving overall efficiency.
  2. Zoning capability: Individual units allow different rooms to have their own temperature settings.
  3. Ease of installation: Installation is faster and less invasive since no ducts are required.
  4. Retrofits and new builds: Ideal for older homes or spaces without ducts.
  • Challenges:
    1. Higher upfront cost for individual units (though savings on ductwork offset this in non-ducted homes).
    2. Indoor units are visible on walls or ceilings, which some homeowners find less appealing.

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Comparison at a Glance

Feature Ducted Heat Pump Ductless Heat Pump
Air Distribution Centralized, via ducts Direct, via individual indoor units
Best For Homes with existing ducts Homes without ducts or for zoned areas
Energy Efficiency Potential loss through ducts No energy loss through ducts
Installation Requires ducts, more complex Easier, no ducts required
Cost Higher for duct installation Higher per unit, but lower without duct
Aesthetics Hidden ducts/vents Visible wall/ceiling units

Choosing the Right System

The choice depends on your home's existing infrastructure, budget, and heating/cooling needs:

  • If you have existing ductwork, a ducted system might be more practical.
  • For homes without ducts or if you want independent temperature control in different rooms, ductless systems are an excellent option.
ducted heat pumps
ductless heat pumps
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