If you heat and cool your home with an old gas-powered system, then good news: Upgrading to a heat pump is more affordable than ever, thanks to major government incentives, and it's basically guaranteed to save you tons of money.
Why are there so many heat pump incentives?
In short, both the federal government and most states offer incentives on heat pumps because they are a highly effective way to save homeowners money and reduce planet-heating pollution at the same time. This aligns with the goals that many countries and states currently have in place for achieving carbon neutrality.
When it comes to federal incentives through the Inflation Reduction Act, most heat pump installations qualify for a tax credit of 30% of the project cost up to $2,000.
And while President Trump has attempted to slash funding for the IRA, this will ultimately require an act of Congress. All things considered, though, interested homeowners are well advised to act sooner rather than later to ensure they can take advantage of maximum savings.
Which states have the best incentives?
While most states offer some form of incentives, the top slots are held by California, Colorado, New York, and Washington. In these places, incentives in addition to the $2,000 federal credit can often reach several hundred to several thousand dollars, and many of them are available to both homeowners and renters.
California, in particular, aims to have 6 million heat pumps installed by 2030, and it's looking to public-private partnerships as well as funding and incentives to make it a reality. Californians in income-eligible households are also able to take advantage of hefty incentives from TECH Clean California.
Why else should I get a heat pump?
The biggest expense associated with a heat pump is installing it — and these incentives dramatically lower those costs. After that, there will only be savings to look forward to.
For example, Harvest, a system that uses heat pumps to heat (and cool) air and water, has a track record of cutting utility bills by 30% on average. Given these savings, it's no wonder that heat pumps only take a matter of years to pay for themselves.
Got a ductless mini split? Swap your outdated remote for a smart controller to elevate your cooling experience Klima is a smart thermostat and controller that's very different to a traditional Nest or Ecobee. It’s designed specifically for ductless heating and cooling — like room A/Cs, window A/C units, and mini split heat pumps — regardless of brand or age. Klima helps you save on energy bills and make your life easier by automatically regulating your home’s temperature to exactly how you like it. You can even control your A/C from your phone and monitor usage no matter where you are. Learn more → |
Heat pumps aren't just good for the wallet; they're also good for health and safety.
Heat pumps work by moving heat from the surrounding environment to warm — or cool — air and water. That means that burning gas is no longer necessary, and moving away from burning gas means ridding your home of air pollution. Considering that burning gas releases known irritants, toxins, and carcinogens, including benzene and carbon monoxide, making this switch will mean the entire family can breathe easier.
|
Which of these factors would most effectively motivate you to buy a heat pump? Click your choice to see results and speak your mind. |
Lower energy bills 💰 Harvest co-founder Jane Melia pointed out that gas can be dangerous in other ways, too. "I'm sitting on an earthquake fault. ... Half of fires after an earthquake are due to the gas," she explained. "And then there's the nitrous oxide in your house and in your neighborhood. So, yeah, heat pumps are the right thing to do."
Other resources for finding incentives
Even if you're unable to upgrade to a heat pump while IRA credits are available, Melia emphasized that the switch is still worth your money — namely because it will drastically lower monthly bills. She also highlighted Rewiring America as an excellent resource for finding rebates.
On the state level, the Database of State Incentives for Renewables & Efficiency includes the full list of 48 states offering state- or utility-level incentives. But even that list leaves out municipal programs at the county, city, and town levels. It's worth doing a simple search with your town name and heat pump incentives to find what offers may be available.
You can go through trusted contractor networks — like this one in California — or through utility providers in your state to find trusted installation experts and gather quotes. Since many utility providers also offer their own incentives, it's always good to check across the board — federal, state, local, and utility — to make sure you're maximizing your potential savings.
Join our free newsletter for easy tips to save more and waste less, and don't miss this cool list of easy ways to help yourself while helping the planet.
