Heat Pump Incentives: Save Big While Reducing Your Carbon Footprint

April 24, 2024
Heat Pump Incentives: Save Big While Reducing Your Carbon Footprint | Heat Pump Installation in St. Louis | Heat Pump Tax Credits

Heat Pump Incentives: Save big while reducing your carbon footprint. As homeowners in St. Louis and beyond consider upgrading their HVAC systems, many are turning their attention to heat pumps — not only as a solution to stifling summers and chilly winters but as a savvy financial decision bolstered by attractive incentives. Federal and state programs offer substantial financial incentives to encourage homeowners to make the switch. These incentives not only lower the initial investment but also promise ongoing savings on energy bills.

Read on to see how heat pumps can help you save and protect the environment. If you’re ready for a heat pump installation in St. Louis, call us today at 314-370-1816, text us at 314-310-2242, or contact us online.

What Is a Heat Pump?

A heat pump is a versatile and energy-efficient system used for both heating and cooling a home. It operates by transferring heat between the indoors and outdoors. In winter, it extracts heat from the outside ground or air — even in freezing temperatures — and moves it inside to warm your home. In summer, it reverses direction to act like an air conditioner, removing heat from your home. This dual capability makes heat pumps an economical and environmentally friendly option for maintaining comfortable indoor temperatures year-round.

Saving Big With Energy-Efficient Heat Pumps

Heat pumps can save St. Louis homeowners thousands of dollars, both with short-term installation costs and down the road. Here’s how:

Federal Tax Credits

Under the Inflation Reduction Act of 2022, the federal government is offering tax credits that are designed to make energy-efficient home upgrades more accessible and affordable to homeowners across the United States.

The tax credit covers 30% of the cost to purchase and install a heat pump, up to a maximum of $2,000 annually. This initiative is part of a broader strategy to encourage the adoption of green technology by reducing upfront costs (we’ll talk about long-term costs later). The good news for homeowners is there is no upper income limit to qualify for these credits, making them available to a wide demographic.

To be eligible for the credit, the heat pump installed must meet specific energy efficiency standards set by the government. Qualified air source heat pumps must have efficiency ratings of:

  • ≥ 15.2 SEER2
  • ≥ 10EER2
  • ≥ 8.1 HSPF2

The tax credit also applies to geothermal heat pumps.

This tax credit is available for systems installed from January 1, 2023, through December 31, 2032. As energy costs continue to rise, the potential savings from using a highly efficient heat pump will likely increase, making this tax credit even more valuable over time.

Utility & Manufacturer Incentives

Ameren Missouri offers substantial rebates for the installation of energy-efficient HVAC systems, including heat pumps. Thanks to Ameren Missouri’s Residential Energy Efficiency Programs, St. Louis homeowners can receive a $900 rebate for air source heat pumps, and a $1,800 rebate for geothermal heat pumps.

To qualify, installations must be performed by a participating contractor (like SmartHouse), ensuring the equipment meets specific efficiency standards. Participating contractors can also offer you:

  • $1,450 instant rebate on the Daikin Fit heat pump
  • Up to $1,325 utility rebates from Ameren and Spire
  • 12 year parts and labor warranty for the Daikin Fit
  • No repair costs until 2036 for the Daikin Fit

Enhanced Energy Efficiency and Cost Savings

Newer heat pumps have higher energy ratings than older units, making them more efficient than the unit you’re likely replacing. Additionally, heat pumps use less energy than traditional ACs and heaters because they transfer heat instead of generating it.

Studies show that heat pumps can deliver up to three times more heat energy to a home than the energy it consumes. This efficiency translates into substantial savings over the lifetime of the unit. According to the Department of Energy, depending on your home’s previous HVAC system, homeowners can save $300 to $1,500 a year in energy bills by switching to a heat pump.

Reduce Your Carbon Footprint by Installing an Energy-Star Rated Heat Pump

St. Louis residents looking to reduce their household’s carbon emissions also have a big incentive to switch to heat pumps. HVAC use accounts for about half of residential energy consumption, the largest contributor for most families.

It’s estimated that 98% of U.S. households would cut their carbon emissions by installing a heat pump. The Department of Energy estimates that U.S. households could cut electricity use by 50% compared to electric furnaces and baseboard heaters.

Heat Pump Installation in St. Louis | SmartHouse Heating & Cooling

Interested in saving big and reducing your carbon footprint in St. Louis? Call SmartHouse. Investing in a heat pump not only boosts your home’s energy efficiency but also significantly lowers your carbon footprint, offering both economic and environmental benefits. With generous federal tax credits and manufacturer and utility rebates, there has never been a better time to upgrade.

Our team is here to guide you through every step of the process, from choosing and installing the right model to providing annual maintenance, ensuring you get the maximum benefits from your new heat pump. Call us today at 314-370-1816, text us at 314-310-2242, or contact us online.