HVAC Financial Incentives for Equipment Upgrades

Upgrading your heating, ventilation, and air conditioning (HVAC) equipment can pay off big in the long run by lowering energy and repair costs. But you must have financial resources to invest in a new heating and cooling system before you reap its benefits.

The cost of a new installation can be a stumbling block if the high-efficiency equipment you want carries a high price tag. If you have not budgeted for the expense, you may be hard-pressed to squeeze additional dollars out of your bank account to upgrade your HVAC system.

Rebates and Tax Credits to the Rescue

The good news is you do not have to drain savings to pay for a high-efficiency system. Financial incentives in the form of rebates and tax credits can make it easy to afford new equipment for your Portland home.

At Sun Glow, we can help you find the local, state, and federal incentives that make equipment upgrades affordable. We also offer financing that enables you to pay for your new heating and cooling system over several months. 

Our HVAC experts can recommend and install the upgrade that best suits your comfort, financial, and energy needs. That may mean upgrading your current equipment to a more energy-efficient model or switching to another type of HVAC system.

ENERGY STAR^® recommends six ways that can deliver significant energy and cost savings. For example, it says you can save $300 annually with a heat pump water heater and 12 percent on energy costs with energy-efficient windows. Other recommended upgrades are smart thermostats, insulation, heat pumps, and preparing your home for increased electrical use. 

Each recommendation is a candidate for a tax credit or rebate.

Federal Tax Credits

The Inflation Reduction Act (IRA) of 2022 provides tax credits for qualified HVAC systems and other improvements. You can claim up to $600 for eligible air conditioners, furnaces, and boilers. The maximum credit on air-source heat pumps is $2,000.

New equipment must meet eligibility requirements. A gas furnace, for example, must have an annual fuel utilization efficiency rating (AFUE) of 97 percent to qualify. AFUE measures the energy efficiency of gas furnaces and boilers.

Our team at Sun Glow can identify which heating and cooling equipment qualifies for credits.

Federal Rebates

The IRA also allotted money to states for rebates that will reduce the purchase price of qualifying equipment. State energy departments nationwide are creating rebate programs that may be underway in late 2024. Rebate eligibility is income-based and aimed at low- and middle-income households.

If you plan to transition your home from fossil fuel-based appliances and HVAC equipment to their electrical counterparts, you may want to time your upgrades to the rebate program rollout.

Once it is up and running, you may qualify for a rebate of up to $8,000 for a heat pump or up to $4,000 for an electrical panel upgrade. Wiring, electric stoves, electric clothes dryers, heat pump water heaters, home insulation, ventilation, and sealing are among the home improvements eligible for rebates.

NW Natural

Become a new customer by bringing natural gas to your home for the first time and installing a new high-efficiency natural gas furnace and central air conditioner to get up to $2,600. Existing customers can receive up to $1,800 for upgrading to a high-efficiency furnace.

Existing and new customers also get money back for installing gas fireplaces, water heaters, and whole-house generators.

These incentives are available through Dec. 31, 2023.

PGE

As a PGE customer, you can get a $200 discount by contracting with an approved HVAC installer, such as Sun Glow, for a high-efficiency heat pump. Other incentives include savings of up to $2,250 on a qualifying Carrier ducted heat pump and up to $400 on a qualifying ductless mini split system.

Check the utility’s website for other home improvement savings and energy tips. Hurry, some incentives, such as the Carrier heat pump offer, expire at the end of the year.

Energy Trust of Oregon

Find savings on everything from heating and cooling to kitchen appliances, solar systems, and more through Energy Trust. Sun Glow is an Energy Trust of Oregon Trade Ally. We can install your new equipment and help you apply for your incentive.

Carrier

Carrier offers incentives throughout the year in conjunction with local utilities and through its Cool Cash rebates program. If you installed qualified Carrier equipment between Sept. 11 and Nov. 18 this year, you must submit your Cool Cash claim by Dec. 18 to be eligible for the rebate.

As Factory Authorized Carrier Dealers, we can help you apply for Cool Cash and keep you apprised of other Carrier incentives.

Upgrade Your HVAC Today

Sun Glow is ready to help you achieve your heating and cooling goals in Portland, OR. Call us at 503-270-3945 or request service online.