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Considering an HVAC upgrade? You can collect an $8,000 rebate for a new system

Given that major changes to the IRA would require congressional action, the situation remains fluid.

Given that major changes to the IRA would require congressional action, the situation remains fluid.

Photo Credit: iStock

As energy costs rise and homeowners seek more efficient ways to heat and cool their homes, heat pumps have become an increasingly attractive alternative to traditional HVAC systems. 

The scoop

Unlike traditional furnaces or air conditioners that generate heat or cold air, heat pumps work by transferring heat from one place to another. In the winter, they extract warmth from the outside air and bring it indoors; in the summer, they reverse the process to cool your home. 

According to Consumer Reports, modern heat pumps are more efficient than ever, even in colder climates where older models used to struggle. There are two main types: air-source heat pumps, which are widely used and easier to install, and geothermal heat pumps, which offer even greater efficiency but come with a higher upfront cost.

To help manage these costs, the Inflation Reduction Act offers tax credits and rebates for heat pump installations. IRA incentives allow for rebates of up to $8,000, depending on income eligibility, as well as a 30% tax credit on installation costs.


💡Save thousands with a heat pump


A heat pump can save you thousands of dollars in heating and cooling costs — but first you have to find the right installer at the right price.

Use EnergySage's free tool today to find local options, compare prices, and see how much you can save.

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EnergySage | Heat Pumps

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Given that major changes to the IRA would require congressional action, the situation remains fluid. Homeowners interested in these incentives might consider acting sooner rather than later to maximize potential savings.

How it's working

Modernizing your home with heat pumps is a fantastic way to embrace both energy efficiency and cost savings. 

Heat pumps are incredibly efficient, using two to four times less energy than traditional gas heaters. This efficiency translates into lower electricity bills, making them a smart financial choice for homeowners. Plus, they offer the dual benefit of heating in the winter and cooling in the summer, which can be particularly appealing for maintaining comfort year-round.

Heat pumps also play a crucial role in helping the planet. Unlike traditional heating methods that often rely on methane — a harmful gas — heat pumps help lower air pollution. In fact, a study by the National Renewable Energy Laboratory found that switching to heat pumps can reduce household energy pollution by 36-64%.

What people are saying

Homeowners who have switched to heat pumps often praise their dual-function efficiency and the noticeable drop in energy bills. Many also appreciate the improved indoor air quality compared to traditional systems. 

What is stopping you from upgrading to a heat pump system?

The cost of installation 💵

I live in a cold area 🥶

I don't know enough about it 🤷

I already have one 😎

Click your choice to see results and speak your mind.

On social media, discussions highlight the long-term savings and environmental benefits, with users encouraging others to take advantage of rebates while they last. Some concerns remain about upfront installation costs, but supporters argue that federal incentives make them a smart investment.

For those ready to make the switch, platforms like EnergySage's Heat Pump Marketplace can help homeowners compare options and find the best system for their needs. 

With potential savings of thousands of dollars and growing concerns about future policy changes, now may be the best time to upgrade your home's HVAC system.

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