HVAC Equipment Rebate Savings Calculator

Estimate your total savings from utility rebates, federal tax credits, and energy cost reductions when upgrading to high-efficiency HVAC equipment.

Equipment Type

Equipment + Installation Cost ($)

SEER2 Rating (Seasonal Energy Efficiency Ratio) Minimum qualifying SEER2: 15 for rebates

HSPF2 Rating (Heating Seasonal Performance Factor) Minimum qualifying HSPF2: 7.5 for rebates

AFUE Rating (Annual Fuel Utilization Efficiency %) Minimum qualifying AFUE: 95% for rebates

EER2 / COP Rating Minimum qualifying EER2: 16 (COP ~4.7) for geothermal rebates

System Capacity (Tons)

Existing Equipment Efficiency (SEER / AFUE %)

Annual Energy Usage (kWh or therms/year) Enter annual kWh for electric equipment

Energy Rate ($/kWh or $/therm)

Utility Rebate Amount ($) Check your local utility's rebate program for exact amounts

State / Local Rebate Amount ($)

Federal Tax Credit (%) IRA 2024: 30% (up to $2,000) for heat pumps; 30% (up to $600) for AC/furnace

Federal Tax Credit Cap ($)

1. Federal Tax Credit:
Tax Credit = min(Equipment Cost × Tax Credit %, Tax Credit Cap)

2. Total Incentives:
Total Incentives = Utility Rebate + State Rebate + Federal Tax Credit

3. Net Cost After Incentives:
Net Cost = max(0, Equipment Cost − Total Incentives)

4. Efficiency Gain % (Electric — SEER2 / COP):
Efficiency Gain % = (1 − Old Efficiency ÷ New Efficiency) × 100

4b. Efficiency Gain % (Gas — AFUE):
Efficiency Gain % = (1 − Old AFUE ÷ New AFUE) × 100

5. Annual Energy Saved:
Annual Energy Saved = Annual Usage × (Efficiency Gain % ÷ 100)

6. Annual Dollar Savings:
Annual Dollar Savings = Annual Energy Saved × Energy Rate

7. Simple Payback Period:
Payback (years) = Net Cost ÷ Annual Dollar Savings

8. Net Savings Over N Years:
Net Savings = (Annual Dollar Savings × N) − Net Cost

Federal tax credits follow the Inflation Reduction Act (IRA) 2022: 30% up to $2,000 for heat pumps/geothermal; 30% up to $600 for central AC and furnaces (§25C).
Minimum efficiency thresholds for utility rebates: SEER2 ≥ 15 for AC/heat pumps; AFUE ≥ 95% for furnaces/boilers; COP ≥ 3.0 for geothermal.
Energy savings are calculated assuming the same annual usage hours and climate conditions — actual savings vary by climate zone, usage patterns, and building envelope.
ENERGY STAR® certification is typically required for utility and federal rebate eligibility.
Utility rebate amounts vary widely by provider; check DSIRE (dsireusa.org) for state and local programs.
HSPF2 and SEER2 ratings (post-2023) are approximately 5–10% lower than legacy SEER/HSPF ratings due to updated DOE test procedures.
Payback period does not account for energy price inflation, maintenance cost differences, or equipment lifespan differences.
References: DOE ENERGY STAR Program, IRS Form 5695, ACCA Manual J, ASHRAE 90.1.

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