Energy Efficiency, Rebates, Tax Credits and More...

In today's world everywhere we turn we are experiencing higher costs. That is also true in the HVAC industry. After several years of price increases the market finally seems to be leveling out but the after math has had a lasting impact on our finances. Everything is just more expensive! So how can we save money and what is the best bang for our buck?

Well the answer is not that simple. We hear about all these energy efficiency rebates but what rebates are actually available? I will break it down for you but first let's discuss what SEER Rating means:

SEER stands for Seasonal Energy Efficiency Ratio and measures the cooling efficiency of a heat pump or air conditioner.

As of January 1, 2023 the Department of Energy updated the regulations for SEER Ratings requiring a minimum of 14.3 SEER2 Rating for ALL AC Systems in southern U.S climates. This is good news, a 14.3 SEER2 air conditioner is going to be more efficient and can save you 40% on energy bills*. The 14.3 SEER2 does not qualify for additional rebates or Federal Tax Credits but is the most affordable up front.

If you select a SEER2 16> you can qualify for up to a $600 Federal Tax Credit in addition to local energy efficiency rebates through PNM.

The highest Federal Tax Credit you can get is up to $2,000. All ducted heat pumps that have earned the ENERGY STAR label are eligible, as well as certified mini-split systems (non-ducted) with:

• SEER2 > 16
• EER2 > 12
• HSPF2 > 9

These will also qualify for local rebates from PNM and New Mexico Gas.

Another thing to consider when choosing an HVAC contractor or product is whether or not they are a licensed contractor with your local utility companies. Some contractors are not eligible to receive the Energy Efficiency Rebates to pass on to their customers. MGP Mechanical is proud to be a participating contractor with PNM and NM Gas.

There are several other ways to maximize the energy efficiency in your home. Smart thermostats, tankless water heaters and regular maintenance of your mechanical systems all play a large role in energy efficiency and they also qualify for additional rebates and tax credits.

If you want to learn more about energy efficiency savings and equipment, please call our office and we can setup a free in home estimate.