Do Utility Companies Offer HVAC Rebates?

If you’re considering upgrading your heating and cooling system, you may be wondering: Are utility rebates on HVAC systems available? The short answer is yes! Many utility companies offer rebates to encourage homeowners and businesses to install energy-efficient HVAC systems. These rebates help offset the upfront cost of new equipment, making it more affordable to invest in energy savings and sustainability.

Common HVAC Products Eligible for Utility Rebates

The types of HVAC systems and components eligible for rebates vary by utility provider and region. However, some of the most commonly covered products include:

• High-efficiency air conditioners – Units with a high SEER (Seasonal Energy Efficiency Ratio) rating may qualify for rebates.
• Heat pumps – Both air-source and ground-source (geothermal) heat pumps often qualify. These systems are energy efficient and environmentally friendly because they don’t burn fuel to generate heat in the winter; instead, they rely on electricity to transfer heat from the outside air or ground.
• Smart thermostats – Many utilities offer rebates for installing programmable or smart thermostats to improve energy efficiency.
• Furnaces – High-efficiency gas furnaces with an AFUE (Annual Fuel Utilization Efficiency) of 90% or higher in the South and at least 95% in the North may be eligible.
• Ductless mini-split systems – These energy-efficient alternatives to traditional HVAC systems typically qualify for rebates.

Many utility companies prioritize rebates for HVAC systems that qualify for ENERGY STAR standards. ENERGY STAR-certified systems must comply with stringent energy efficiency guidelines set by the U.S. Environmental Protection Agency (EPA).

For example, central air conditioners and heat pumps must meet SEER2 (Seasonal Energy Efficiency Ratio) and EER2 (Energy Efficiency Ratio) ratings, with minimum SEER2 requirements of 14.3 in northern states and 15.2 in southern states as of 2025.

Steps to Apply for an HVAC Rebate

1. Check Your Utility Provider’s Website – Most utility companies have a dedicated section listing available rebates and incentives.
2. Call Your Utility Company – Contact your provider directly to ask about current rebate programs.
3. Confirm Equipment Eligibility – Ensure your HVAC system meets the efficiency requirements for the rebate program.
4. Work with a Qualified Contractor – Many rebate programs require installation by a licensed contractor.
5. Submit Your Application – Be prepared to submit the required documents, such as receipts, installation certificates, and potentially a copy of your utility bill.

How to Find Utility Rebates on HVAC Systems

The best way to find out if your local utility offers HVAC rebates is to check their website or contact them directly. Here are examples of utility companies offering rebates:

• Duke Energy Rebates for HVAC – Duke Energy offers rebates on select energy-efficient HVAC systems. For example, homeowners who upgrade their air conditioning system or existing heat pump with 16 SEER (15.2 SEER2) units may be eligible for rebates of $150 and $100, respectively. Those who upgrade an existing heat strip system with a qualifying heat pump can earn a rebate of $300. Customers in North Carolina, South Carolina, Indiana, Ohio, Florida and Kentucky may be eligible.
• PECO Rebates HVAC – PECO Energy in Pennsylvania provides rebates for central air conditioners ($200), air-source heat pumps ($300), and ductless mini-split ($300) that meet ENERGY STAR certification. Homeowners can also get a $25 or $50 rebate for having a professional maintain their air-source heat pump.
• ComEd Rebates HVAC – ComEd in Illinois has significant incentives for high-efficiency air-source heat pumps and ductless mini-split systems, helping customers save on both their initial purchase and long-term energy costs. Air-source heat pumps and ductless and mixed use mini-split heat pump products that comply with standards established by the Air Conditioning Heating and Refrigeration Institute (AHRI) are eligible for discounts of $1,200 and $1,000, respectively. 
• Ameren HVAC Rebates – Ameren Illinois and Ameren Missouri offer a variety of rebates on energy-efficient heating and cooling equipment, including heat pumps and smart thermostats. Instant Incentives through the Ameren Illinois Energy Efficiency Program are available for qualifying smart thermostats ($115), ducted air-source heat pumps, less than 65 kBtu ($900), heat pump water heaters ($1,150), and ductless mini-split heat pumps ($630).
• FPL HVAC Rebate – Florida Power & Light (FPL) provides a $150 rebate for high-efficiency air conditioners with a SEER of at least 16. This rebate can help Florida homeowners combat the heat while reducing energy consumption.
• Georgia Power Rebates for HVAC – Georgia Power offers $1,000 rebates for installing qualifying ductless mini-split and geothermal heat pump systems that are installed by a participating contractor or other licensed professional. Other incentives are available for ENERGY STAR certified ceiling fans and dehumidifiers, duct sealing, and home energy assessments.
• Pacific Gas and Electric (PG&E) – the largest utility company in California, PG&E offers a range of rebates for residential and business customers to upgrade to energy-efficient HVAC systems, including options through the Golden State Rebate Program and other specialized initiatives. These programs offer potential savings from hundreds to thousands of dollars.
• Public Service Electric and Gas (PSE&G) – serving much of New Jersey, PSE&G offers HVAC rebates for energy-efficient upgrades, including new heat pumps, central air conditioners and gas furnaces and boilers.

These are just a handful of utility companies offering HVAC rebates across the country. If your provider isn’t listed here, check their website or contact them directly to see what incentives may be available in your area.

Utility Rebates on Smart Thermostats

Many utility companies also offer rebates for smart thermostats to promote energy efficiency and reduce peak electricity demand. These rebates help lower the cost of buying a smart thermostat, making energy-saving technology more accessible.

On average, smart thermostat rebates range from $50 to $200, depending on the utility provider and location. Utilities provide these incentives because smart thermostats help optimize energy use, reducing strain on the electrical grid while promoting sustainability.