Two people installing a heat pump, which is a dual system heating and cooling appliance that’s better for the environment and your wallet.
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IRA for the win

How to Get Your New Heat Pump Paid for in Texas

Kelsey Bourgeois
September 7, 2023

Why is Everyone Talking About Heat Pumps, and Should I Get One?

If you have been paying even a little bit of attention to energy-efficient home improvement talk lately, you’ll know one of the most exciting pieces of new technology is the heat pump.

That’s because heat pumps:

If you’re lower or middle-income in your area, this might all seem a bit daunting. That’s why the program is set up to pay more to people who earn less, making this upgrade much more accessible for us.

Can heat pumps handle the Texas climate?

Yes! As the weather in Texas becomes a bit more volatile, heat pumps are a good choice for that climate because of their versatility. And if you’re in one of the more humid areas of Texas, this system also acts as a great dehumidifier year-round!

If you lived in Texas in 2021, you might be worried about whether a heat pump can handle colder temperatures, and the good news is that nearly every model on the market can, down to temperatures below zero!

In fact, Texas has one of the highest heat pump adoption rates among any state, with 20% of households using the technology, and those numbers are expected to rise.

Heat pump basics

The name is a bit of a misnomer in that these appliances can heat and cool a home. Most often, the term refers to an air-source heat pump. These units don’t create heat, they move heat from outdoor air into indoor air (and does it in reverse for cooling). Beyond their dual purpose, air source heat pumps are also more energy efficient than traditional furnaces or electric resistance heating, saving you money and reducing your emissions.

There are multiple types of heat pumps, and if you’re new to this appliance, we recommend learning more here: Heat Pump Basics: Everything You Need To Know

How much is this going to cost me?

This will depend largely on the type of heat pump you choose, your existing ductwork, and installation costs in your area. However, end-to-end costs can be as low as $2,500 in some instances. More typically, you’re looking at high four figures. This is exactly why the government will pay up to $8,000 in point-of-sale help for many people!

How do I get the money?

The first thing to know is that no matter your income, you will receive at least a 30% federal tax rebate of purchase and installation fees, up to $2000. That said, the lower your income compared to your Area Median Income or AMI, the more money you can get for upgrading - up to $8,000!

Do you want an estimate of how much you qualify for? Check out the Rewiring America Inflation Reduction Savings Act Calculator. Just put in a couple of pieces of information, and you’ll be on your way!

As an example, if you are a single homeowner in Dallas, Texas, who earns $65,000 per year, you’d be eligible for $8,000 upfront to install a heat pump in your home if you choose a highly energy efficient one.

That upfront money comes at point-of-sale (meaning you don’t have to mail anything in or wait for the money) through the High-Efficiency Electric Home Rebate Act (HEEHRA), which was included in the Inflation Reduction Act (IRA) of 2022.

Will I save money over time with a heat pump?

Yes! In fact, a heat pump will replace two HVAC systems (heating and cooling) and cost significantly less money to run over time. Your savings could be hundreds of dollars each year!

Not to mention, you’ll be doing your part to combat climate change and reduce energy waste. There really is no downside, and we’ll be here to walk you through it all at the OhmConnect blog.

Happy heat pump shopping, readers!

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