Grants for Air Source Heat Pumps

Heating or cooling our homes to make living inside it more comfortable cost a lot. What’s more, it also has a great impact on the environment because we usually use gas, oil or electricity to produce enough heat to warm the entire house. While modern technology has made use of heating equipment more efficient and less costly than decades ago, we are still a long way off from a perfect system, if ever there would be one. But even as we are still trying to find that perfect system, there are existing technologies for providing heat that have less negative impact on the environment. Air source heat pumps (ASHP) for example use less energy than traditional heating equipment that uses oil, gas or electricity. Traditional heating equipment convert fuel to heat energy but air source heat pumps use it to move warm air coming from outside to provide indoor warmth. For every one unit of energy, it produces up to three time heat energy, thus making it more efficient. The government is pushing for energy saving technology and thus provides grants for air source heat pumps to help promote the development and usage of more energy saving heat generation technology for the home.

Federal Tax Credits for Air Source Heat Pumps

Homeowners who own an existing home and use it as their principal residence can earn a $300 federal tax credit if they choose to install air source heat pump units that are Energy Star certified. This is part of the new law that has extended tax credits for using efficient energy sources into 2011 but at a lower level than before the President signed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. Tax credits in effect today are the same as those in 2006 and 2007.

Your use of air source heat pumps can get you a $300 tax credit only if you installed it in your home you are occupying as your primary residence at installation time. You should obtain a copy of your unit’s Energy Star’s certification and keep it for reference when obtaining your tax credit.

Minnesota ASHP Rebate Programs

Some states have power companies that offer rebate programs for ASHP users. Minnesota Power for example, has a rebate program for qualified ASHPs. Your unit must meet a minimum SEER or Seasonal Energy Efficiency Ratio (which measures the unit’s cooling efficiency) and HSPF or Heating Seasonal Performance Factor (which measures heating efficiency) standards. The program also requires that you use electricity as your primary source of heating in your new or existing home.

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