Ductless HVAC rebates are a great way to lower the upfront cost of mini-split installation. There are several ways to get heat pump rebates and other financial incentives, through both federal programs like the Inflation Reduction Act Heat Pump Tax Credit and state-led initiatives like grants or private funds. Below, explore the different heat pump rebates that are available for eligible and qualifying homeowners in New York, New Jersey, and Pennsylvania.
Depending on the type of system you have installed, the layout of your home, and other critical factors, you may be eligible for one or more rebates and financial incentives below.
The Inflation Reduction Act of 2022 was signed into law by the Biden administration in August of the same year, and invests $369 billion into various sources of clean energy, including residential heat pumps and ductless mini-split systems. Homeowners may be eligible for the following credits, according to the Natural Resources Defense Council:
- Residential Clean Energy Tax Credit – Reimbursement of 30% of the cost of a new home heat pump (no cap).
- Energy Efficient Home Improvement Tax Credit – Reimbursement of 30% of the cost of the upgrade or purchase of a residential heat pump, up to $2,000.
New York has recently signed the American Rescue Plan Act (ARPA) according to Heat Smart CNY, which provides $26.7 million in funds to assist Home Energy Assistance Program (HEAP) recipients in improving the energy efficiency of their homes. Under the EmPower New York Program, eligible residents may receive up to $20,000 per home for qualifying insulation upgrades, heat pump installation, and weatherization improvements.
Participating HVAC contractors and installers offer up to $2,500 in rebates to eligible homeowners on a case-by-case basis. These funds are provided by local carbon offset payments, which are contributions made by private citizens for the payment of energy-efficient initiatives in an effort to “make up” for their own carbon footprint.
Qualifying homeowners can receive a discount of as much as 50% of the cost of eligible improvements, including new heat pump installation, up to $5,000 total for a single-family residence. Qualifying two to four-unit structures may be eligible for a discount of up to $10,000 according to the New York State Energy Research and Development Authority (NYSERDA).
Per the State of New Jersey Board of Public Utilities, the Clean Energy Comfort Partners installation program offers zero-cost heat pump installation to qualifying residents, paid for by the New Jersey Societal Benefits Charge, a state-run public benefits fund. Residents can apply for this benefit through their utility company.
The SAVEGREEN Project is operated by New Jersey Natural Gas and offers heat pump rebates of up to $1,500 on upgrades and new installations to qualifying residents, as well as up to $15,000 in financing for income-eligible customers, subject to credit approval. This option allows homeowners to pay over time with 0% APR financing for up to 7 years. Caps may apply.
Residents may be eligible for up to a $200 rebate on qualifying ENERGY STAR certified mini-split air conditioning units.
Residents may be eligible for up to a $150 rebate on a qualifying ENERGY STAR certified terminal heat pump.
Pennsylvania’s WARM Program provides energy-efficient upgrades to eligible low-income residents. This may include weatherization and insulation upgrades or the replacement of inefficient air conditioners and heating units with ductless technology. Applicants must use at least 375 kWh of electricity per month and have a gross annual income before taxes of 200% or less of 2022 Federal Poverty Guidelines.
At Jones Services, we’re committed to helping our customers achieve affordable, energy-efficient home heating and cooling. We can work with you to determine the rebate options available to you and create an installation plan that maximizes your home comfort while minimizing your upfront costs.
Contact us today to learn more or to schedule a quote in Pennsylvania, New Jersey, or New York by calling our team of qualified HVAC contractors at (845) 299-2234. We are available now to answer your urgent questions.