Heat Pump Rebate Calculator

What Is a Heat Pump Rebate Calculator?

A Heat Pump Rebate Calculator is an online tool that estimates:

• Your Area Median Income (AMI)
• Your income as a percentage of AMI
• Your rebate eligibility tier
• Your total available rebates
• Your estimated net project cost

It uses income rules and equipment limits from the HEEHRA program. The goal is simple: help homeowners understand their savings before they talk to a contractor.

Instead of being surprised by costs later, you see the numbers up front.

Why Heat Pump Rebates Matter

Heat pumps can cost anywhere from:

• $4,500 for a standard air-source system
• $6,500 for a cold-climate system
• $22,000 for geothermal

That is a big investment.

But under HEEHRA, qualified households may receive:

• Up to $8,000 for a heat pump
• Up to $1,750 for a heat pump water heater
• Up to $4,000 for electrical panel upgrades
• Up to $2,500 for wiring
• Up to $1,600 for insulation and air sealing
• Appliance rebates for electric stoves and dryers
• A total household cap of $14,000

For many families, that changes everything.

How the Calculator Determines Your Eligibility

The calculator follows a clear step-by-step logic.

1. It Calculates Your Adjusted Area Median Income (AMI)

Each state has a base AMI for a four-person household.

Then the calculator adjusts it based on your household size using a multiplier.

For example:

• 1 person = 1.00 multiplier
• 4 people = 1.76 multiplier
• 6 people = 2.24 multiplier

If your state AMI base is $75,000 and you have 4 people:

$75,000 × 1.76 = $132,000 adjusted AMI

That becomes your comparison number.

2. It Compares Your Income to AMI

Your income is divided by your adjusted AMI.

This determines your rebate tier:

• Tier 1: Income ≤ 80% of AMI → 100% rebates
• Tier 2: Income 80%–150% of AMI → 50% rebates
• Above 150%: Not eligible for HEEHRA rebates

If you are not eligible, you may still qualify for federal tax credits under:

• Energy Efficient Home Improvement Credit (25C)
• Residential Clean Energy Credit (25D)

The calculator clearly shows your tier.

Equipment Options Included in the Calculator

The tool covers multiple electrification upgrades.

1. Air-Source Heat Pumps

Options include:

• Standard air-source heat pump
• Cold-climate air-source heat pump
• Ductless mini-split
• Geothermal system

Cold-climate states may receive bonus amounts for high-performance systems.

If you are replacing:

• Oil
• Propane
• Natural gas
• Wood

You may also receive a conversion bonus.

2. Heat Pump Water Heaters

These systems use far less electricity than standard electric resistance water heaters.

The calculator includes:

• Standard efficiency (UEF 3.0+)
• High-efficiency models (UEF 3.5+)

Rebates can reach $1,750 depending on your income tier.

3. Electrical Upgrades

Electrification often requires:

• 100A or 200A panel upgrades
• Wiring updates
• Dedicated circuits

The calculator automatically caps rebates at program limits.

This is important because rebates cannot exceed actual equipment or installation costs.

4. Weatherization and Insulation

Weatherization improves efficiency and lowers energy bills.

Options include:

• Air sealing
• Insulation plus sealing
• Comprehensive improvements

If you convert from fossil fuels, the calculator may recommend weatherization upgrades.

5. Electric Appliances

The calculator also includes rebates for:

• Electric or induction stoves
• Electric wall ovens
• Heat pump dryers

Each has its own rebate cap.

How Total Rebates Are Calculated

The calculator:

1. Applies your rebate percentage (100% or 50%)
2. Caps each category at its program maximum
3. Applies bonuses if eligible
4. Caps the total at $14,000 (adjusted for tier)

For example:

If you qualify for 100% rebates:

• Maximum total = $14,000

If you qualify for 50% rebates:

• Maximum total = $7,000

This prevents overestimating savings.

What the Results Section Shows

After clicking “Calculate Rebates,” you see:

• Area Median Income
• Your income as % of AMI
• Rebate tier
• Heat pump rebate
• Water heater rebate
• Electrical rebate
• Weatherization rebate
• Appliance rebate
• Total HEEHRA rebates
• Net project cost

You also receive a short explanation, such as:

• 100% rebate eligibility
• 50% rebate eligibility
• Not eligible due to income
• Cold-climate bonus applied
• Conversion bonus applied

This helps you understand why you received a certain number.

Why Income Tier Matters So Much

This program is income-based.

Two households installing the same $8,000 system could see very different results:

• Household A (≤80% AMI) may pay $0 after rebates
• Household B (120% AMI) may pay $4,000
• Household C (>150% AMI) receives no rebate

That is why a calculator is essential before making decisions.

Important Things to Remember

• Rebates are applied at the point of sale through approved contractors.
• States must launch their programs individually.
• Income verification is required.
• Rebates cannot exceed your actual project cost.
• Some states offer additional utility rebates.

Always confirm final numbers with your state energy office and a licensed HVAC contractor.

Is a Heat Pump Worth It?

For many homeowners, yes.

Heat pumps:

• Provide heating and cooling in one system
• Lower monthly utility bills
• Reduce fossil fuel use
• Improve indoor comfort

When rebates cover a large portion of the cost, the upgrade becomes much more affordable.

If you qualify for Tier 1, the savings can be dramatic.