The government is sweetening the pot for homeowners who want to ditch their old HVAC units for cutting-edge tech.
The Inflation Reduction Act offers households up to $10,000 to upgrade to heat pumps that can both heat and cool homes more efficiently than conventional gas-powered furnaces or AC units.
The scoop
The government will send $2,000 in rebates to all homeowners who install heat pumps through the IRA. Depending on your household's income, though, you could be eligible for up to $8,000 more. Those two rebates can be stacked for a maximum total of $10,000.
Those rebates go a long way to helping with the hardest obstacle of all with heat pumps — the upfront cost of $4,000-8,000 on average. Many homeowners can cut that cost in close to half, if not more, with the government chipping in.
These tax incentives may not last much longer, though. President-elect Donald Trump said he wants to "rescind all unspent funds" allocated for the program, so while that would need approval from Congress and it's too early to project a possible end date, the benefits may not be around for much longer.
Once the heat pump is installed, it provides a major upgrade in energy efficiency and the ability to both cool and heat a residence. That nifty trick is accomplished by moving heat from indoors to outdoors or vice versa, unlike gas-powered furnaces, which generate heat from scratch.
For homeowners looking to shop for the best rates in the area and tap into all the available rebates, EnergySage's Heat Pump Marketplace is the perfect place to start.
How it's working
Consumers who install heat pumps with an assist from the government are reaping the rewards.
Heat pumps can save energy usage by up to 50%. Through that, the average household can recoup a median amount of $300-650 a year in energy costs, per research from the U.S. Department of Energy's National Renewable Energy Laboratory.
🗣️ Which of these factors would most effectively motivate you to buy a heat pump?
🔘 Lower energy bills 💰
🔘 Better temperature control 🌡️
🔘 Helping the planet 🌎
🔘 I'd never buy a heat pump 🚫
🗳️ Click your choice to see results and speak your mind
Another big benefit is for the environment. Heat pumps are cleaner than gas-powered furnaces, which burn dirty energy. That results in both indoor and outdoor carbon pollution that contributes to the dangerous warming of the planet.
💡Save thousands with a heat pump
A heat pump can save you thousands of dollars in heating and cooling costs — but first you have to find the right installer at the right price.
Use EnergySage's free tool today to find local options, compare prices, and see how much you can save.
The Cool Down may receive a commission on signups made through links on this page, but we only promote partners we vet and believe in. For more cool tips like this one, check out our solutions list here.
With the government paving the way, it's the perfect time for consumers to make the switch.
What people are saying
"There are millions of people who would benefit from putting in heat pumps," said Eric Wilson, a researcher in the National Renewable Energy Laboratory.
"My heat pump is great…saving me money and keeping me comfortable," one Redditor shared in response to a post titled "Heat Pumps: Are they as good as I'm being told?"
Another poster agreed and called theirs "very efficient."
Meanwhile, even in the frigid Minnesota winters, local homeowner Michael Overend told Yale Climate Connections his heat pumps have "done great."
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