Last reviewed July 8, 2026 · J. Park · about 2 minutes
Heating and cooling are among the largest energy costs in most homes. Public programs at the federal, state and local levels can reduce the cost of upgrading to more efficient equipment.
Incentives come in a few forms. Point-of-sale rebates reduce the price when you buy. Mail-in rebates refund part of the cost afterward. Tax credits lower the tax you owe when you file. Heat pumps and high-efficiency furnaces usually qualify for the biggest amounts.
Most programs require equipment to meet minimum efficiency ratings, such as SEER2 for air conditioners and HSPF2 for heat pumps. Check the model number against the program's list before you buy, and keep the paperwork.
Weatherization programs focus on making the whole home more efficient. They may cover insulation, air sealing and repairs or replacement of unsafe heating systems. Eligibility is usually based on household income compared with the area median. Local community action agencies run most programs.
Electric and gas utilities often offer their own rebates, free energy audits or on-bill financing that lets you repay the cost through your monthly bill.
Equipment and installation prices vary by region and project. Program funding and rules also change, so confirm details before you commit.
This page provides general information only. It is not legal, financial or medical advice. Rules and prices vary by location and change over time; confirm details with an official source. See our disclaimer.