Heat pumps are becoming a popular choice due to their ability to both heat and cool a home. The best part is that they’re extremely energy-efficient, meaning you can save a bundle on your annual heating and cooling bills. Even better, opting to have a heat pump installed in your Ohio home can come along with some great tax rebates and incentives.
Inflation Reduction Act of 2020
One of the most well-known tax incentives that homeowners can enjoy when it comes to investing in a new heat pump for their home is through the Inflation Reduction Act of 2020. This allows homeowners to reclaim up to 30% of the total purchase price of their new system. The maximum amount that you can claim is $2,000 per system.
This particular tax incentive is given in the form of a tax credit for the year that you install your new heat pump system. Instead of receiving a check in the mail, you can reduce your tax bill by the amount of the credit. You can get a list of all the heat pump systems that qualify for this tax credit on the ENERGY STAR website.
Duke Energy’s Residential Efficiency Rebate Program
Duke Energy is a local utility provider for the Ohio area that offers residents a rebate for investing in energy-efficient appliances for their homes. To be eligible to receive this rebate, you must purchase a heat pump that has a SEER rating of 14 or greater. The heat pump must have an ECM or electronically commutated motor to be eligible. Homeowners can get back $350 per unit installed.
The Energy Cooperative’s Residential Energy Efficiency Rebate Program
One program that is gaining more popularity as homeowners are looking for ways to reduce their energy bills is the Radio Controlled Switch Program. Known informally as the RCS program, this requires homeowners to have a special radio control switch installed on their HVAC system. This switch is controlled by the local utility company and can shut off and turn on your system remotely.
The whole idea behind the RCS program is to help reduce energy consumption at times of very high demand. Most homeowners can expect to receive an interruption in their HVAC service around 10 times throughout the year during the worst of the winter and summer energy demands.
In most cases, homeowners don’t experience any severe changes in their comfort level when their system’s operation is interrupted by the radio control switch. Apart from doing your part to help lower rising energy costs by better controlling demand, having a radio control switch put on your heat pump can reward you with a rebate of up to $599.
Home Energy Rebates Program
The Home Energy Rebates Program is a fairly new program that’s rolling out through the 2024 and 2025 years. Under this program, homeowners can receive direct point-of-sale discounts on the purchase of their new heat pump system. Those who have a low income can receive a discount of up to $8,000, while those with a moderate income can receive a discount of up to $4,000.
To qualify for the low-income discount, your household income must be under 80% of the area’s median income. To receive the moderate-income discount, your household income must be 150% or less of the area’s median income. To be eligible for this program, you have to go through a state-approved contractor that must get approval for your system’s installation from the State Energy Office.
AEP Ohio’s Residential Energy Efficiency Rebate Program
AEP Ohio offers its own Residential Energy Efficiency Rebate for homeowners who invest in a new heat pump. The amount of the incentive that you receive will be highly dependent on the specific type of heat pump that you purchase. Most residential air-source heat pumps can make you eligible to receive an incentive of $300 or more. A geothermal heat pump can increase that incentive to $1,200 per unit.
First Energy Rebate Program
First Energy offers its own rebate program for homeowners who invest in heat pumps. First Energy also goes by the name of Ohio Edison, Toledo Edison, and The Illuminating Company. Homeowners who purchase a heat pump can receive a rebate of up to $750. You can determine your exact rebate amount by checking First Energy’s website.
Dominion Energy Rebate Program
Dominion Energy is offering eligible customers a rebate of $650 for qualified heat pump purchases. To be eligible for the rebate, your new heat pump must be ENERGY STAR-certified. You can get the rebate procedure information online at Dominion Energy’s website.
The Many Benefits of Investing in a Heat Pump
Apart from becoming eligible to receive a wide variety of tax incentives and rebates when you purchase a new heat pump, its installation does come along with many other great benefits that you should be aware of. One of the most important is that it can provide both heating and cooling for your home.
Traditionally, one of the bigger drawbacks of trying to use a heat pump in Ohio is that the temperature gets too cold for the heat pump to work. Modern-day heat pumps can now function efficiently at temperatures down to -20 degrees Fahrenheit. This allows the heat pump to be a single HVAC system that can take care of your comfort needs year-round
One very big advantage of investing in a heat pump for your home is that it has a very high operating efficiency. In fact, during the winter months, a heat pump can have an efficiency rating of anywhere between 300 and 400%. The only other type of heating system that comes close to this efficiency is an electric furnace that operates at 100% efficiency. When your heat pump is operating efficiently, you can enjoy the vast amount of energy savings that it will provide for you throughout the entire year.
Another great advantage of a heat pump over traditional heating systems is that it doesn’t produce any sort of harmful exhaust fumes. Furnaces that burn natural gas, heating oil, or propane all end up producing toxic fumes like carbon monoxide. These require adequate ventilation to safely get the fumes out of your home and always have the possibility of malfunctioning and allowing those toxic fumes to build up inside your home.
When you go with a heat pump, you can have the peace of mind that there’s never a possibility of those harmful exhaust fumes accumulating inside your home. Furthermore, heat pumps are very versatile in the fact that they can be installed to work with your existing ductwork or can be installed to not use ductwork at all. These ductless mini-split systems can be highly advantageous for homeowners who don’t have any existing ducting in their homes.
Reliable Heat Pump Installation Service
Anderson Heating, Cooling, Plumbing & Electric offers reliable heat pump installation service to the entire Mentor, OH community. We can also assist with all your plumbing, air conditioning, heating, drain, sewer, and electrical needs. Call our staff today to book your next service appointment.
