Why Do Rebates and Incentives Exist in the AC Industry?
Power companies are offering incentives to reduce electricity consumption because
it is cheaper than building new electrical generating capacity. Utilities are offering rebates on energy efficient equipment and incentives for conservation to minimize the risk of rolling brown outs when demand spikes.
The government at all levels is pushing energy efficiency along with green energy. This is in part to slow the demand for more power as the population continues to grow. Reduced energy demand is also necessary if we are going to shift to green energy, which costs more per kilowatt hour in all forms except hydroelectric power. Reduced energy consumption then reduces the bite of higher costs per kilowatt.
Air conditioning equipment manufacturers offer rebates and incentives to encourage people to buy equipment. HVAC equipment is typically a capital expense. Someone who balks at the $5,000 bill for a new energy efficient air conditioner may buy it if offered a $500 rebate available upon purchase. Like any coupon, manufacturers offer the coupons with the hope of increasing sales while knowing that only half or fewer of the rebates are collected.
How to Get Information on Rebates and Incentives
If you need info on new ac units and scoop on rebates, there are several sources. First, contact your utility company or power co-op. They can tell you about any direct rebates available from the utility for installing a more efficient AC, typically given as a reduction or credit on your electric bill. They can also refer you to local HVAC contractors that give rebates in conjunction with the utility.
Your city, county or state may give tax credits for installing energy efficient air conditioners. There are federal tax credits for installing Energy Star rated air conditioners. Information on the federal tax credits is available at Energystar.gov. Information on new ac units and scoop on rebates as new versions of energy saving tax credits become available will be posted on the federal Energystar.gov website. Most state tax credits for Energy Star appliances ran out in 2011, but the program may come back or have continued at a state level where you live.
To claim rebates from your utility rebate program or for tax credits, you will need to fill out the necessary forms and a copy of the invoice. Some utility and local government rebate programs require a copy of the Air-Conditioning, Heating, and Refrigeration Institute (AHRI) certificate to prove the energy efficiency of the AC unit. Not all Energy Star units are considered eligible for rebates based on energy savings.