Replacing or purchasing a new air conditioner, heat pump, furnace or another HVAC appliance is a significant and long-term investment. It’s important to make sure you’re doing all you can to reduce your financial stress. It can be challenging to figure out which solution is best for you when preparing for this investment.
Let us guide you through the steps necessary to determine which system and financing option will meet your needs and budget.
Rebates and other options vary according to the type of HVAC system you own, its efficiency level, your utility company, and even where you reside. Because of this, we can’t offer a universal solution, but we can offer you a base of knowledge so you can find what’s best for you.
Know the Costs of an HVAC System
The cost of a new HVAC system changes every year, and it may have been 10-20 years since you last had to research and buy a new unit. It is important to know first how much it will cost to replace an air conditioner, heat pump, or furnace.
The cost doesn’t solely relate to the main unit. Electrical work, ductwork modifications, condensate drainage, equipment matching between ac and furnace, and the system’s efficiency can all affect pricing. You should schedule an estimate with an experienced HVAC contractor to get an idea of what the cost might be for your specific needs.
Refer to this page: Heating and AC Service
Determine What Size Equipment You Need
If your system is old, it is likely to be far less efficient than newer ones. It is also possible that your current system is not even sized correctly for your home. Having financing available for a new HVAC system is extremely helpful because it gives you the chance to upgrade to equipment that runs more efficiently and provides better HVAC performance.
So, what size does your air conditioner or furnace actually need to be?
In order to figure this out, a load calculation needs to be performed.
A load calculation considers a number of variables. You should consider how many windows you have in your home, how your house faces the sun, and how well you insulate your walls and roof. A load calculation will also include the heat generated by the people, lights, and electronic devices in your home, just to name a few. An industry standard for load calculation is the Air Conditioning Contractors of America (ACCA) Manual J method.
When you have a final load value from the calculation, you’ll know what size your HVAC needs to be.
HVAC Tax Credits
Check Energystar.gov to learn more about the tax credit and deduction policies. Currently, the following information is shown on their site:
A 26% federal tax credit for residential ground source heat pump installations has been extended through December 31, 2022. The incentive will be lowered to 22% for systems that are installed in 2023, so act quickly to save the most on your installation.
Rebates and Special Offers for HVAC
Here at Pacific Aire, our goal is to not let finances hold you back so we offer 0% *Financing up to 12 months, or a $2,000 Rebate towards the purchase of an entire HVAC system
Consider Your Discount Options
There are going to be quite a few differences among HVAC contractors. The good news is that there are several potential discounts you can ask about that may save you quite a bit of money. These include:
- Veteran discounts that are unique to each local jurisdiction, even within the same city or region.
- Manufacturers run seasonal rebates on the equipment you’ll be purchasing. Many manufacturers offer these on their websites.
- Teachers
- Seniors
- First Responders
- Club Memberships
You won’t be able to find all of these with every contractor, but many will have at least one.
The HVAC contractor you choose should discuss each of these with you in advance. It is possible that they don’t if there is nothing available at this time. Ensure that your HVAC representative is discussing it with you.
Single Family Housing Repair Loans & Grants
If you live in a rural area such as Fillmore, Oakview, Ojei, Carpinteria, Castaic or parts of the PCH, you might be eligible for the Single Family Housing Repair Loans & Grants.
What does this program do?
Also known as the Section 504 Home Repair program, this provides loans to homeowners to repair, improve or modernize their homes or grants to elderly low-income homeowners to remove health and safety hazards.
Check out more info on two of the loans below:
HVAC Loans
HVAC loans are personal loans that you can use to purchase or replace an HVAC system. It is released as a lump sum amount and paid back over a period of one to seven years by fixed monthly installments.
You need to have a good credit score in order to qualify for a personal loan. Low-interest rates and larger loan amounts are offered to qualified borrowers with good credit scores, stable income, and limited other debt.
- Personal loans typically carry a percentage annual rate ranging from 6% to 36%.
- The amount of a loan ranges from $1,000 to $100,000.
- Without affecting your credit score, there are many lenders online who will let you pre-qualify and see terms and HVAC financing rates before applying for a personal loan.
Ensure that the terms of the personal loan are suitable for you.
Other Financing Options
Several other programs exist to assist with financially and environmentally responsible upgrades across the country, state, and local levels. The best place to find these programs is DSIRE, which offers information about renewable and efficient energy policies.
Available Financing Options at Pacific Aire
For your convenience, we provide as much information about discounts and rebates as possible. For more information refer to HVAC Financing here.
With so many contractors to choose from, it can be difficult to find an HVAC company that you can rely on. Before you commit to a costly HVAC service repair or system replacement, consider getting a FREE second opinion with Pacific Aire.
