Lincoln Celebrates Success of Heat Pump Program on Earth Day – City of Lincoln, NE

Posted on April 22, 2024

The program draws 176 participants; Lincoln residents save money, reduce emissions

Mayor Leirion Gaylor Baird today reported that 176 households have participated in the heat pump incentive program launched by the City of Lincoln in January. City officials encouraged residents to take advantage of the remaining $245,000, including $129,000 for low-income residents, still available through the program.

“On this Earth Day, we are excited to celebrate the success and popularity of our heat pump incentive,” said Mayor Gaylor Baird. “We encourage more community members to take advantage of this opportunity to save money on heating and cooling costs, contribute to clean indoor air quality, and reduce greenhouse gas emissions.”

The City of Lincoln allocated $500,000 to fund the pilot incentive in the 2022-2024 annual budget. 40% of the funds are directed to low and moderate income residents through the Department of Urban Development. The remaining 60 percent is available to Lincoln single-family homeowners and will be distributed through the LES.

Under the program, Lincoln homeowners are eligible for a $1,000 incentive sponsored by the City of Lincoln toward the purchase of an air source heat pump. Eligible low-income residents who apply will receive $3,000. Both can be combined with an $800 incentive from the Lincoln Electric System (LES) Sustainable Energy Program. As summer approaches, residents are reminded that electric heat pumps are also energy-efficient cooling systems that keep your home comfortable year-round.

Funds are available on a first-come, first-served basis until August 31st, or until funds are spent, whichever comes first. Visit lincoln.ne.gov/HeatPump for more information.

The city has set aside 58% or $158,000 in incentives for everyone, with $116,000 remaining. Low-income residents have received 30% or $54,000 in incentives, with $129,000 remaining.

“Heat pumps are quieter and more efficient than conventional equipment and prevent the burning of fossil fuels such as gas and oil that cause environmental pollution. We still have money, and we make the process easier and faster for residents,” said Peter Hind, Director of the Urban Development Department. .

Details of incentives include:

• Only homeowners or owners of single-family rental properties within the Lincoln city limits are eligible. Low- and moderate-income homeowners who meet income guidelines may qualify for higher rebates through the Department of Urban Development’s housing assistance programs. For more information, please see the City of Home Improvement section on the Housing Assistance page.

• The incentive covers the purchase and installation of air source heat pumps with a Seasonal Energy Efficiency Rating of 15.2 and a minimum Ratio of 12. Heat pumps must replace an existing heat pump or air conditioner that is at least five years old. This unit can also replace a gas furnace and residents are encouraged to consult with a heating/cooling professional to determine the best options for their home.

• Participating contractors will apply for City and LES incentives on behalf of residents. Visit LES.com/SEP to see a list of participating HVAC contractors and additional information about incentives. Email SEP@les.com for more information. Contact one or more of the participating Sustainable Energy Program contractors for available bids and incentives. Purchase and install a new heat pump through a selected contractor and incentives will be applied as a credit to the contractor’s invoice.

Federal tax credits are available for up to 30% of the cost of a new heat pump. This credit can be used in conjunction with incentives from the City of Lincoln and the LES. Visit ENERGY STAR Tax Credit for Air Source Heat Pumps page for more information. The City recommends consulting with a tax professional on qualifying facilities and tax abatement details. You may also qualify for additional savings on other electrical upgrades. Visit Inflation Rule Calculator for more information.

For more information on heat pump attractions and the LES Sustainable Energy Program, visit lincoln.ne.gov/HeatPump, LES.com/SEP or email SEP@les.com.