Modern HVAC units are dramatically more efficient than their older counterparts. While a new gas furnace might operate at 95% efficiency, a unit from just 30 years ago might be 80% efficient or less.
Why does it matter? The more efficient your HVAC is, the less energy it requires to keep your home comfortable. Upgrading your HVAC is an investment that pays dividends over time.
If you’re still on the fence about an upgrade, the State of Minnesota is making the decision easier with its new energy efficiency programs.
Here’s what you need to know about the new programs and options for improving your HVAC efficiency today.
Energy Efficiency Programs for Minnesota Residents
The federal Inflation Reduction Act set aside $500 billion for clean energy grants. This includes the Home Energy Rebate program, which must be developed and implemented by each state in the union. In addition, Minnesota’s state legislature allocated money for two other programs that can help defray the cost of upgrading your HVAC.
Home Energy Rebate Program
This program is still being developed, and will accept first applications in late 2024 to early 2025. It will allow for rebates from $2000-$8000 towards installing efficient, cleaner home energy options (like high-efficiency HVAC systems). These grants will be available to people who earn at or below 150% of the median income in their county.
Residential Heat Pump Rebate Program
A heat pump can be three to four times more efficient than an electric heater. Even in the coldest weather, when you’ll want to use a heat pump along with a traditional furnace, using a pump could cut electricity use by as much as 40 percent.
The Residential Heat Pump Rebate Program offers benefits of up to $4,000 towards the installation of an air-source heat pump.
Residential Electric Panel Upgrade Grant Program
This new program can help defray the cost of upgrading your electrical panel to support a new HVAC system, heat pump, or other energy efficient upgrades. It’s an income-based grant of $2 to 3,000, which may be enough to cover the entire cost of the retrofit.
Additional Energy Efficiency Programs
The above programs are currently being finalized and rolled out. In the meantime, there are existing programs to help defray the costs of an energy efficiency upgrade available now.
The State of Minnesota offers income-based programs to help with heating and weatherization. In addition, local energy providers also have ongoing programs:
- Minnesota Energy Resources
- Xcel Energy Home Rebates
- Centerpoint Home Heating Rebates
When the time comes to take advantage of these energy efficiency programs, it’s important to select a qualified contractor with a history of satisfied customers. We’ve been serving Minnesota for over four generations! Contact us for a quote today.
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