Rebates in Memphis

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 get the most out of your savings.

For instance, the energy efficiency standards for HVAC systems are increasing, so you should check the minimum ratings to get a better understanding of what’s best for the climate. To qualify for rebates and tax credits, the HVAC system needs to meet these criteria.

Service Experts Heating & Air Conditioning can simplify the process. By sharing details about local HVAC rebates online, it becomes more convenient for homeowners to save cash and hours on this crucial utility. We’ll also help you find the ideal make and model to ensure you benefit the most from heat pump discounts, AC discounts and more.

How New Standards Impact Energy Efficiency Ratings and HCFC Refrigerant

As solutions for climate control advance, so do our standards for what makes them energy efficient. There are different 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.

HVAC Efficiency Standards

Over the course of seven years, the U.S. Department of Energy updates the minimum efficiency standards for HVAC systems. This time, there are new minimum efficiency standards homeowners should know. In Northern states, non-compliant AC and heat pump systems finished before January 1, 2023, can still be sold and installed. Meanwhile, in the Southeast and Southwest regions, non-compliant air conditioning systems are not allowed no matter their manufacture date. Non-compliant heat pumps made before January 1, 2023, can still be sold and installed in these areas.

Understanding HVAC efficiency ratings is crucial for both manufacturers and homeowners:

• SEER and SEER2: Seasonal Energy Efficiency Ratio systems are for air conditioners, with the SEER2 ratings used for newer AC systems. The minimum for both SEER and SEER2 ratings fluctuate by region across the United States, with hotter southern climates requiring greater efficiency ratings.
• EER: An analogous 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 modern designs.
• AFUE: The Annual Fuel Utilization Efficiency system measures 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 US EPA Refrigerant Regulations

A large part of why HVAC technology advanced 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.

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. This is how you can benefit from these opportunities:

• Household Energy Credits
• Home Energy Tax Credits

Home Energy Credits

You can apply for tax credits for eligible energy-efficient improvements such as 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 improve your home’s efficiency.

Energy-Efficient Home Improvement Credit

This credit will cover 30% of the cost of eligible home improvements, up to $1,200 annually. This extends to heating and cooling systems, energy-efficient windows and doors, and insulation. By using this incentive, you can receive better home efficiency and enjoy even more energy savings.

National Tax Credits and Deductions

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 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 available and affordable, promoting the use of renewable energy sources.

Energy-Efficient Heat Pumps: The Act also includes incentives for purchasing and installing energy-efficient heat pump systems. These credits can cover a significant portion of the cost, making heat pumps an attractive option for improving your home’s heating and cooling efficiency. Heat pumps are a particularly energy-efficient option and can greatly reduce your energy consumption and costs.