When people show for a new air conditioning or heating system, we often look at the face value price of what we are purchasing and consider it the final cost.
Thanks to efforts from multiple organizations, this is simply not the case. Outside of the initial cost, it is important to factor in the total cost of ownership. In many situations, you could actually save money in the long run.
Things to consider
Higher efficiency units initially cost more but often offer more rebates, incentives. Simply put, government agencies and power companies (like NIPCSO) want you to be efficient.
Government agencies and power companies strongly encourage the use of higher efficiency equipment to help reduce power consumption during the summer cooling season. That is the time which most often stresses the ability of the local power plant to keep up with demand. By helping to alleviate the stress, and in return lower their costs, consumers also experience the alleviation with rebates and a total reduced cost on their initial purchase.
Incentives are offered by federal, state or local governments. These often come in the form of direct rebates, tax credits or tax deductions and in some cases can total more than $1,000 per system, depending on your location and system purchased.
How are Incentives Determined?
Incentives for air conditioners and heat pumps are related to efficiency ratings and performance. The efficiency of air conditioning systems in the U.S. is measured by Seasonal Energy Efficiency Rating or SEER. Heat pumps are measured by Heating Seasonal Performance Factor or HSPF. The higher the SEER or HSPF number is signifies higher efficiency.
When it comes time to decide if a higher efficiency system with incentives is worth the cost, be sure to calculate the expected time required before additional efficiency savings cover the initial cost of the unit. Remember, your exact payback will depend on the system cost, amount of incentive, cost of electricity, and your regional climate.
As always, there are several places to look in regards to more information on rebates and energy efficiency. They are as follows:
These websites contain valuable information on policies that support renewable energy and energy-efficiency.
For more information on the best energy efficient units in Northwest Indiana, contact us at (219) 309-9314. We'd love to help!