Heat Pump Incentives

Photograph of heat pump Get Up to $4,000 for a New Heat Pump 

Beginning September 1, 2026, eligible Lincoln homeowners can receive incentives of up to $4,000 to upgrade to a qualifying high-efficiency heat pump. 

Heat pumps are one of the most energy-efficient ways to heat and cool your home year-round. They can improve comfort, reduce energy use, and lower household greenhouse gas emissions. 

How much can I qualify for? 

Household / Replacement Type

City of Lincoln

LES

Total Incentives

Low- and moderate-income households replacing an existing heat pump or air conditioner with a qualifying heat pump

$3,000

$1,000

$4,000

General population households replacing an existing heat pump with a qualifying heat pump

Up to $500*

$1,000

Up to $1,500

General population households replacing an existing air conditioner with a qualifying heat pump

Up to $1,500*

$1,000

Up to $2,500

*Use the City of Lincoln Incentive Portal (lincolnheatpumps.org) to look up your address and see how much your household qualifies for. 

Who is eligible:

  • Residents of the City of Lincoln who:
    • Live in or own and rent out a single-family detached home (rental units not eligible for the LMI incentive)
    • Live in and own a row home, town home, condo, or duplex

What is eligible:

  • The purchase and installation of air source heat pumps or mini-split heat pumps. 

  • Heat pumps must replace an existing heat pump or central air conditioner that is at least five years old. Window air conditioners are also eligible for replacement with a heat pump when the property has no central air conditioning. A heat pump may be paired with either a gas or electric furnace. 

  • Heat pumps must be inverter driven OR have both a minimum SEER2 (Seasonal Energy Efficiency Rating) of 15.2 AND a minimum EER2 (Energy Efficiency Ratio) of 12. All systems must be AHRI rated. Your contractor can help ensure these requirements are met. 

What is not eligible:

  • Any residence outside of Lincoln city limits
  • Commercial property, including multi-family housing
  • Row homes, town homes, condos, and duplexes if the unit is renter occupied
  • Ground source heat pumps
  • New residential construction
  • Mobile homes
  • More than one heat pump per household (Sept 1-Aug 31)
  • Installation of a new heat pump without replacement of an older system

How do I apply?

For low- to moderate-income residents:

  1. Check your income: Your income must be equivalent to or below 80% of the Lincoln Area Median Income(PDF, 99KB) to qualify for the $3,000 incentive.
  2. Get approved: Before installation, contact the Urban Development Department at urbandev@lincoln.ne.gov. Approvals must occur before the heat pump is installed to qualify.
  3. Find a participating contractor: Get one or more bids and ask about available incentives. See the participating HVAC contractors. Please note that a participating contractor listed must be used to maintain eligibility for the low- to moderate-income incentives. The contractor will apply for the LES incentive on your behalf.
  4. Install your heat pump: Purchase and install your new heat pump through the contractor you select. The incentives will be applied as a credit on your contractor's invoice.

For residents above moderate-income (above moderate-income):

  1. Check your incentive amount: Look up your address in the City of Lincoln Incentive Portal (lincolnheatpumps.org).
  2. Find a participating contractor: Get one or more bids and ask about available incentives. The contractor will apply for the City and LES incentives on your behalf. 
  3. Install your heat pump: Once installed, your incentives will be applied as a credit on your contractor’s invoice. 

For more information:

Visit LES.com/SEP or email SEP@les.com.

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