An Overview of Energy Rebates for Energy-Efficient HVAC Systems
You may enjoy energy rebates if you improve your HVAC system's energy efficiency. The rebates can lower your cost of HVAC replacement or upgrade. Below is a brief overview of these rebates.
Who Are Rebate Providers?
HVAC rebates are actually energy-efficiency rebates. Different parties use the rebates to encourage energy efficiency. Energy efficiency helps to:
- Ensure that energy demand does not exceed supply
- Keep energy costs affordable
- Reduce pollution related to energy production and consumption
Below are the usual parties that offer the rebates.
The Government
The government offers energy rebates at different levels. You may get rebates from the national, state, and local government.
Utility Companies
Many utility companies also offer rebates for their clients. The rebates frequently change, so you should always inquire about the latest offers.
What Are the Types of Rebates?
Different forms of energy efficiency rebates are available. Below are the most common.
Tax Credits
You use tax credits to decrease the amount of taxes you owe the government. Say you get a tax credit of $1,000, but you owe $2,500 in taxes. The tax credits can reduce your tax bill so that you only pay $1,500. Thus, anyone who gifts you tax credits effectively puts money in your pockets.
Tax Deductions
You use tax deductions to reduce your taxable income. Say you have a taxable income of $40,000, and you have received a tax deduction of $5,000 as a rebate. You will often only pay taxes on $35,000 (taxable income minus tax deduction).
Direct Rebates
Direct rebate is actually money that the provider sends to you after purchase. Say you buy a $10,000 heating system and gets a $1,000 rebate. You will pay full price for the heating system and then get a check for $1,000 afterward. Thus, a direct rebate is like a discount, only that you don't get it instantly.
What Are the Determining Factors?
Different factors determine whether you qualify for energy rebates and how much you can get. Below are some of the top factors.
Location
Rebate providers usually define the geographical boundaries of their programs. For example, state-sponsored rebates are only available to properties within the state's boundaries. Utility providers will only provide rebates to those within their areas of operations.
Energy-Saving Measures
You may enjoy energy rebates when you take measures that reduce your energy consumption. For example, you may enjoy energy rebates if:
- You install an energy-efficient HVAC system
- You install a smart thermostat
- You upgrade your attic insulation
- You install energy-efficient windows
The providers determine the exact prerequisites. For example, they define the specific energy efficiencies that HVAC systems must meet to qualify for rebates.
How Can You Find Rebates?
Multiple rebates may be available at any time — you just have to find them. Below are some rebate-hinting tips.
Contact Potential Providers
The most direct method is to contact those who usually provide the rebates. For example, you can contact the local government or your utility company to ask about the available offers.
Ask Your HVAC Contractor
Many HVAC providers also have up-to-date information on relevant rebates. Discuss with your provider about every installation, replacement, or remodeling that you plan to make, and they may help you identify the rebates for which you qualify.
Use Online Resources
You can also search for available rebates online. Some websites even have dedicated resources for searching for rebates.
Rebates are just one way of affording HVAC systems. Art Douglas Plumbing Inc. can advise you on further cost-saving measures. We have been active in the HVAC industry for years. We provide complete HVAC solutions for installation, repair, and service. Talk to us for further discussions on how to afford your HVAC replacements or installations.
