Rebates & Savings with the Inflation Reduction Act

The inflation Reduction Act has made it easier than ever to make the switch to energy-efficient heating and cooling systems. Homeowners are eligible for generous rebates after installing a new heat pump, making it an even more cost-effective choice. With the help of these rebates and incentives, you can enjoy the benefits of efficient heating and cooling while also saving money in the long run.

The Inflation Reduction Act created two new residential rebate programs.

  • The Home Energy Performance-Based, Whole-House Rebates (HOMES) Program will provide rebates for whole-house energy savings retrofits.
  • The High-Efficiency Electric Home Rebate (HEEHRA) Program will provide point-of-sale consumer discounts on the purchase of high-efficiency electric home appliances.

Heat Pump Rebates with the Inflation Reduction Act:

By taking advantage of the incentives provided by the Inflation Reduction Act, you can make sure that your home remains comfortable and energy-efficient for years to come. With the improved energy efficiency that a heat pump provides, you’ll have more money in your pocket and a healthier environment for everyone. It’s never been easier to make the switch to energy-efficient heating and cooling. With the help of heat pump rebates, you can enjoy all the benefits of a more efficient home with minimal expense.

Learn More about Heat Pump Rebates

Dran’s Heating & Air Conditioning recommends industry leading Rheem systems.

Beginning this year rebates are available for heat pumps at the point of sale, cutting costs of purchase and installation up to $8,000. If home electrical upgrades are needed to integrate new heat pumps, rebates of up to $4,000 are available for households.

Home energy performance-based, whole house rebates (HOME Rebates) for:

  • Rebates for energy efficiency retrofits range from $2K to $4K for individual households and up to $400,000 for multi-family buildings.
  • Grants to states to provide rebates for home retrofits
    • Up to $2,000 for retrofits reducing energy use by 20% or more, and up to $4,000 for retrofits saving 35% or more
    • Maximum rebates double for retrofits of low- and moderate-income homes.
  • The high-efficiency electric home rebate program to:
    • Develop a high efficiency electric home rebate program with $225 million allocated for tribes.
    • Includes point of sale rebates administered by states.
    • Includes means testing and will provide 50% of the cost for incomes 80 to 150% of area median income, and 100% of the cost for incomes 80% of area medium income and below, and similar tiers for multi-family buildings.
    • includes a $14,000 cap per household, with an $8,000 cap for heat pump costs, $1,750 for a heat pump water heater, and $4,000 for panel/service upgrade.
    • Other eligible rebates include electric stoves and clothes dryers, and insulation/air sealing measures.

Click here to learn more about rebates and savings with the Inflation Reduction Act.