How Southern Californians Can Save Money When Upgrading HVAC System?

Save Money When Upgrading Your HVAC System

How Southern Californians Can Save Money When Upgrading Your HVAC System?

None of us truly mind saving money, especially when it comes to energy bills. Did you know that as a Southern California resident, you can save a great deal of dollars when upgrading your HVAC system? Since your home’s heating and air conditioning system consumes almost 50% of the total home energy, taking advantage of energy incentives for HVAC upgrades makes sense.

You may only need to invest in your home’s HVAC system a few times in your life, but doing it at the right time can increase your home’s comfort level and reduce your carbon footprint at the same time. If you are looking for a high-efficiency HVAC system but are worried about the cost, here’s how you can save your hard-earned money without compromising on your comfort.

The Switch is On Program

The “Switch is On” rebate program created by TECH Clean California as a way to help homeowners minimize their energy usage and allow California to meet its climate goals.

The program offers a rebate to single and multi-family homes that upgrade to new central heat pump systems or install a mini split totaling $6000 for each house. Heat pumps are an excellent substitute for conventional HVAC systems since they offer many advantages. These include increased energy efficiency, less noise, and a lower carbon footprint. Since they use renewable energy resources and transfer them into usable heat, heat pumps are very cost-effective and efficient. This increased efficiency allows households to save money on their overall energy bills.

The payment for the Switch is On program (which could be around $6000) also offers rebates that allow you to replace your current water heater with a more efficient heat pump heater costing between $1000 to $3100 based on the source of fuel of your old system. The amount also varies depending on the number of HVAC systems that you replace. A flat incentive structure of $1000/unit, with a maximum of 2 units per house, is available for all customers living in California.

This provides numerous benefits for your home such as:

  • No open flame is present in your property, which eliminates the risk of gas leaks and explosions
  • Your house is free of harmful gases, such as carbon monoxide
  • The probability of a fire hazard is significantly reduced
  • Your energy bills go down, resulting in significant savings

LADWP AC Optimization Program

The Los Angeles Department of Water & Power (LAWDP) has introduced the AC Optimization Program that provides customers with a no-cost central AC tune-up and an energy-saving rebate of up to $4000. A participating certified HVAC expert conducts a diagnostic evaluation of your system to check its efficiency and determine the necessary changes to get it back to optimum health.

A follow-up diagnostic test is then run to confirm whether your AC is functioning smoothly or not. The test results will show if your current system qualifies for a rebate for upgrading HVAC equipment with ENERGY STAR. AC systems equipped with R-22 or R-410a refrigerants can qualify for the program.

IRA Tax CreditChanges

Another option to take advantage of HVAC rebates is through the IRA's heat pump tax credit. In 2022, the Inflation Reduction Act was signed into law, increasing incentives for homeowners who wanted to make eco-friendly changes. California homeowners can now claim a 30% tax credit on a range of energy efficiency upgrades, including around $2000 for heat pump water heater or heat pump installation, as well as $1200 for air sealing and insulation materials, and more.

The IRA also raised the federal solar tax credit to 30%, enabling homeowners to increase their savings when installing solar panels or getting solar batteries.

Besides improving tax credits, the IRA has also introduced many different rebate programs that will soon be available to homeowners. Rebate amounts will vary by service but can go as high as $14000 for income-eligible homeowners and around $4000 for everyone, irrespective of their earnings.

Get your AC Ready for the Hot Summer Months

If you want to save on HVAC equipment costs or are passionate about reducing carbon emissions with heat pumps, it is best to get in touch with Hilo Aire as your certified Santa Clarita heating & air conditioning contractor. If you haven’t gotten your AC serviced in a long time, are tired of frequent breakdowns, or simply want to take advantage of these above-mentioned incentives, Hilo Aire can help!

The Hilo Aire team comprises qualified and experienced professionals specializing in various services such as AC installation, repairs, upgrades, and tune-up services. Contact Hilo Aire today at (888) 445-6247 to learn more about which credits and discounts you may be eligible for and start saving money! You can also find out more about the best ways to keep your energy bills down and how to prepare your AC for the upcoming summers.

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