Gas Furnace

Gas Furnace Replacement Rebate: Maximize Your Savings with Utility Incentives

What is the Gas Furnace Replacement Rebate Program?

The Gas Furnace Replacement Rebate program is a utility-sponsored initiative that offers financial incentives to residential customers who replace their old, inefficient non-condensing furnaces with new high-efficiency condensing furnaces. This program aims to encourage homeowners to upgrade their heating systems, leading to improved energy efficiency, reduced utility bills, and a smaller environmental footprint.

Who is Eligible for the Gas Furnace Replacement Rebate?

Gas Furnace Replacement Rebate

To be eligible for the Gas Furnace Replacement Rebate, customers must meet the following criteria:

  1. Utility Service Area: Customers must be residential customers of participating utilities, such as Eversource, Avangrid, NIPSCO, and NYSEG.
  2. Equipment Replacement: Only customers replacing an inefficient non-condensing furnace with a new high-efficiency condensing furnace are eligible.
  3. Active Account: Customers must have an active residential natural gas account with the participating utility.
  4. Installation Requirements: The qualifying furnace must be installed by a licensed contractor in the utility’s service territory.

What are the Application Process and Requirements?

The application process for the Gas Furnace Replacement Rebate typically involves the following steps:

  1. Pre-Installation Verification: Existing equipment verification is required. Customers must contact the inspection vendor for their utility to schedule a virtual or on-site inspection prior to replacing the existing equipment.
  2. Qualification Check: Customers should confirm that the new system qualifies for rebates with the HVAC contractor or by checking the ENERGY STAR website.
  3. Application Submission: Customers must complete the rebate application and mail it to the address on the rebate form, along with the necessary documentation, such as the AHRI Certificate and paid invoice.

What are the Energy Star Certified Gas Furnaces and AFUE Rating Requirements?

To qualify for the Gas Furnace Replacement Rebate, the new furnace must meet the following energy efficiency requirements:

  1. Energy Star Certification: The furnace must be AHRI rated and have an AFUE (Annual Fuel Utilization Efficiency) of 95% or higher.
  2. Significance of AFUE: The AFUE rating measures the efficiency of a furnace by calculating the ratio of heat output to the energy consumed. A higher AFUE indicates greater efficiency and is a critical factor for rebate eligibility.

What are the Maximum Rebate Amounts and Tiered Structures?

The maximum rebate amounts and tiered structures vary among the participating utilities. Here are some examples:

  1. EnergizeCT: $650 mail-in rebate for qualifying Natural Gas Furnaces with an AFUE of 95% or higher.
  2. NIPSCO: $250 rebate for Natural Gas Furnaces with an AFUE of 95% or higher.
  3. Consumers Energy: Tiered rebates based on AFUE ratings: $500 for 97% or higher, $200 for 96%, and $100 for 95%.
  4. National Fuel: $1,350 for a Hot Air Furnace with ECM plus a 15 SEER Heat Pump, and $150 for a Hot Air Furnace with ECM alone.

What are the Installation Requirements and Compliance Factors?

To ensure the eligibility and proper installation of the new furnace, the following requirements must be met:

  1. Licensed Contractor: The qualifying furnace must be installed by a licensed contractor in the utility’s service territory.
  2. Inspections: Existing equipment verification and post-installation inspections may be required to ensure compliance and eligibility for rebates.
  3. Local Codes: The equipment must comply with local building codes and regulations.

What are the Relevant Calculations and Specifications?

The key specifications and calculations for the Gas Furnace Replacement Rebate program are as follows:

  1. AFUE Rating: Furnaces must have an AFUE of 95% or higher to qualify for rebates.
  2. AHRI Certification: Furnaces must be AHRI certified to qualify for rebates.
  3. Installation Address: The equipment must be installed in the service territory of the participating utility.

By understanding the eligibility criteria, application process, and rebate details, homeowners can maximize their savings and take advantage of the Gas Furnace Replacement Rebate program offered by their local utility.

Reference Links

  1. EnergizeCT Residential Natural Gas Furnace Incentive Details:
  2. Residential Natural Gas Furnace Incentive Details | EnergizeCT
  3. NIPSCO Rebates for Your Home:
  4. Save energy and money with rebates – NIPSCO
  5. NYSEG Residential Rebates:
  6. Residential Rebates – NYSEG

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