Residential HVAC Incentive

Air Source heat pumps can mean substantial savings for energy-wise consumers. If you’re considering replacing your existing fossil fuel system, replacing a non-air source heat pump or other resistant electric system or planning to build a new home, investigate this program.

Air- Source Heat Pump or Dual Fuel

Install an all electric air-to-air heat pump in a new home, replace your existing electric air-to-air heat pump or replace your fossil fuel heating system and receive:

  • $750 rebate
    • Multi-speed compressor
    • Air-Conditioning Heating Refrigeration Institute (AHRI)- matched system
    • Seasonal Energy Ration (SEER) ≥ 16, Energy Efficiency Ration (EER) ≥ 10
    • Must provide corresponding AHRI certificate

Replacing 100% Electric resistance Heat – Air-Source Heat Pump or Dual-Fuel

Replace an existing 100% electric resistance heat system (i.e. baseboard, ceiling cable or 100% electric furnace) with an air-to-air heat pump with electric or gas back-up and receive:

  • Single-speed compressor air-source heat pump (ASHP) incentive: $800 rebate
  • Dual/variable/multi-speed air source heat pump (ASHP) incentive: $1,500 rebate
    • Unit must replace whole-home electric resistance with no supplemental heat.
      • Examples of non-qualifying replacement include electric space heaters and heat pumps only operating on electric resistance.
    • Traditional stick-built and modular housing
      • ASHP ≥16 SEER
    • Manufactured housing
      • ASHP ≥14 SEER
    • Must provide corresponding AHRI certificate

Whole-Home Mini-Split Heat Pump (MSHP)

  • Replace existing A/C, heat pump or new construction incentive: $750 rebate
  • Replace electric resistance heat incentive: $1,500 rebate
    • Whole-home heating and cooling installations
    • Multi-speed compressor
    • AHRI-matched system
    • SEER ≥ 19, EER ≥ 12.5
    • Must provide corresponding AHRI certificate

Single-Room Mini-Spit Heat Pump (SRMSHP)

  • $300 rebate
    • Single room additions and outbuildings
    • Multi-speed compressor
    • AHRI-matched system
    • SEER ≥ 19, EER ≥ 12.5
    • Must provide corresponding AHRI certificate

Geothermal Heat Pump

  • $1,500 rebate
    • Desuperheater or hot water assist is suggested, but not required, for new installation geothermal systems when an electric resistance water heater is utilized.

Requirements To Qualify for This Program:

  • Must be installed in Bartholomew County REMC service area.
  • Must show proof of sale, serial and model numbers, size of unit and kw backup. Compressor speed and SEER rating must be validated on the customer’s bill-of-sale. AHRI certificate stating HSPF is required.

* REMC personnel retain the option to verify installation.