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How to Find Rebates for a High Efficiency Furnace

High Efficient Furnace

High efficiency furnace with an AFUE of 98%

One of the many gripes that people give for putting off installing a new high efficiency furnace is that ‘we just can’t afford it right now’. While it’s true that money can be tight, paying 150% for utility bills due to an old furnace or poor insulation around the house is financially irresponsible just the same.

What many people have found out is that replacing an old dilapidated heater with a new high-efficiency furnace doesn’t have to be an all or nothing equation. In fact, government kickbacks are available even if you build your ‘green’ household piece by piece.

Here is an example of some of the rebates that are available and the average prices:

Programmable Thermostats $20

Replacing an old thermostat with a programmable thermostat provides an instant rebate but also starts the steps for a high-efficiency furnace system. The programmable thermostat will save on utility bills by only heating the area before people arrive and to be more efficient while individuals are sleeping. The thermostat must have programs for weekends and weekdays with two settings for each to qualify for the stipend.

High Efficiency Furnace $200-$300

The factor on how Governments decide on furnace efficiency is called the Annual Fuel Utilization Efficiency (AFUE). A furnace with a high AFUE burns less gas to produce the same amount of heat. A stipulation for the rebate is that a professional contractor must install the high-efficiency furnace, but that’s good advice with any furnace. Plus the higher AFUE rating a unit has, the bigger the furnace price tag, but also the bigger the rebate:

  • 92% AFUE = $200 rebate
  • 95% AFUE = $250 rebate
  • 97% AFUE = $300 rebate

In addition to the incentive of money for purchasing a more fuel efficient furnace, the lower heating bills have reduced costs from 40-50% for some consumers.

High Efficiency Boilers $425

High-efficiency boilers have an 85% AFUE or above. Most utility companies will require that a consumer purchases a 95% AFUE or above-rated boiler to accurately round out their high-efficiency furnace and to get the maximum amount of rebate available. High-efficiency boilers also include features that use less energy overall such as a variable speed motor, which allows for fewer stops and starts and less temperature variation.

Air Sealing and Insulation Work

Saving energy does not only involve purchasing high-efficiency appliances. In fact, simply sealing up gaps in the home and placing new insulation in rooms could save a homeowner upwards of $1000. The air sealing must be performed by a professional but is eligible for up to $0.40 per CFM50 reduction in airflow up to $400. A duct sealing contractor could earn another $350 rebate whereas upgrading insulation in the walls and attic of a home is worth $900.

The best thing about sealing up the home and better insulation, besides the rebates, are lower heating bills, and a longer lasting furnace since it will not have to work as hard.

I hope you enjoyed this article re: high efficiency furnace.  Here are some related posts…

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Replacing Furnace? 6 Signs It’s Time!

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