Updated January 25, 2023
Thanks to offers from ComEd and the IRS, you can save now and save later when you install new high-efficiency heating and cooling equipment in your Fox River Valley home. You’ll need a qualified contractor to take full advantage, and Compass Heating and Air has you covered on all fronts.
In this article, we’ll outline two great offers that every homeowner in Barrington, East Dundee or any Fox River Valley town should know about. Put together, you can save up to or more than a thousand dollars on a new furnace, central air system, or mini split/heat pump system.
There’s only one catch if you can even call it that: The new equipment must meet energy efficiency requirements. But that works out even better for you in the long run.
High-efficiency uses less energy than other options. So, after you save a bundle on the installation, you’ll see lower bills every month after that.
Once again, we reached out to ComEd communication specialist Luz Bottecchia for the most up-to-date information. We heard from Chris Czarnecki, government relations manager for the Air Conditioner Contractors of America
But first, let’s start local.
ComEd offers rebates for many Energy Star-certified appliances. Their HVAC incentives include:
o $125 for = 15 SEER
o $125 for = 14.2 SEER2
o $175 for = 16 SEER
o $175 for = 15.2 SEER2
o $225 for = 18 SEER
o $225 for = 17.2 SEER2
o $1,275 on = 15 EER
o $1,500 on = 17 EER
o $1,800 on = 20 EER
You can even get discounts for system tune-ups!
Air source Heat Pumps qualify for $100 discount, and Central Air Conditioning systems qualify for a $35 discount!
Adding a Smart Thermostat will get a discount of $100 , and there’s an addition $75 rebate through the ComEd Marketplace- just click here for more information. Duct sealing also can save you $250!
Check out more energy-saving tips here.
According to Bottechia, more than one million ComEd customers have taken advantage of these offers since 2008. In all, the program has saved homeowners more than $5 billion over the last 12 years.
And, those savings have been especially welcome over the last dozen months: ComEd noted a three-percent increase in residential use in 2020. That was due in large part to people being home more because of the pandemic.
But, that uptick was accompanied by a 4.9-percent decrease in system usage across the board.
“ComEd’s average residential customers’ bills will be lower this year than they were in 2008, in part because these successful energy efficiency programs have helped them use less energy,” said Boettechia.
You can apply online for the offers, and many of them are provided through a certified HVAC contractor at the time of service- be sure to ask your contractor about these discounts! To qualify, you must have the unit installed by a qualified service provider. We’ll get into that a little later.
Meanwhile, the models you choose have to meet specific efficiency requirements. You’ll notice “HSPF” and “SEER” next to the models.
The HSPF or Heating Seasonal Performance Factor,(now HSPF2), tells you how much energy a heat pump uses to produce heat.
Seasonal Energy Efficiency Ratio, or SEER, (now SEER2) measures how much energy your HVAC unit uses to provide air conditioning.
To qualify for the rebates, you must use a ComEd Energy Efficiency Service Provider. You can find a list of providers here. And, yes, Compass Heating and Air is on there.
The benefit of a certified provider, along with knowing the work gets done correctly, is having someone familiar with the process and qualifications.
Also, make sure the company you choose is certified by the brand you’ve purchased. Most brands require a certified tech to install the new equipment. Otherwise, they’ll void the warranty.
For the rebate itself, we’ll fill out an application and include invoices for every item installed. Mini splits, for instance, have two or more components, depending on the setup.
Heat pump rebates in the IRA (Inflation Reduction Act) for Illinois residents are going to depend on your income and the heat pump equipment you and your contractor select. If you do qualify and install a qualifying heat pump system, incentives could exceed $3,500 to $5,000.
Broadly speaking, every year for the next ten years, Illinois homeowners can claim a tax credit for 30 percent of the cost of qualified projects that make their home less drafty or improve energy efficiency, to an annual limit of $1,200 credit.
That means you can spend $4,000 annually to improve the comfort and efficiency of your home and the IRA will throw you up to $1,200 of that investment back in the form of tax credits and cash rebates.
Qualifying incentives include:
The Illinois Citizens Utility Board supports the IRA because they have long argued that climate change will cost electric customers billions in higher bills in years to come, so the board concludes that fighting climate change through strong clean energy legislation is a pro-consumer issue.
Now, this is a credit, not a rebate. That means however much you qualify for comes off what you owe. So let’s say Uncle Sam’s expecting $2,000 in taxes after you file. With a $600 credit, you’ll only owe $1,400.
And, if you owe less than $600 — say, $200 — in taxes, the rest is a rebate. Using that $200 number, you’d get $400 back with a $600 credit.
We threw a lot of numbers, quotes, and acronyms at you here. But, the bottom line is this: You can promote energy independence at home while saving money and staying comfortable. And, we can help you do it.
Call or email Compass Heating and Air for a free consultation when you’re ready to replace your old heating and cooling system. We’ll help you choose a new, energy-efficient HVAC system that will keep your home comfortable while saving you money.