Heat Pump Incentives

Photograph of heat pump
  • The $1,000 General Population City Heat Pump Incentives Have Been Expended as of May 22, 2024
  • $3,000 Low-to-Moderate Income City Heat Pump Incentives Still Available
  • $800 LES Incentives Still Available to All LES Customers Installing High-Efficiency Heat Pumps

Lincoln homeowners who have low-to-moderate income are eligible for a $3,000 City of Lincoln-funded incentive toward the purchase of an air source heat pump. This may be combined with an $800 incentive from LES’ Sustainable Energy Program. Funds are available on a first-come, first-served basis until August 31, 2024, or until funds are expended, whichever comes first.

The best way to heat your home in the winter and cool your home in the summer is with a heat pump. Electric heat pumps are more energy efficient than other heating and cooling systems and keep your home comfortable year-round. They also reduce your household’s greenhouse gas emissions.

Who is eligible:

  • Low- and moderate-income homeowners or property owners in the City of Lincoln (single-family residences only).

What is eligible:

  • Purchase and installation of air source heat pumps
  • Heat pumps must replace an existing heat pump or air conditioner that is at least five years old. The unit may also replace a gas furnace. Consult a heating/cooling expert to determine what is best for your residence.
  • Heat pumps with a minimum SEER2 (Seasonal Energy Efficiency Rating) of 15.2 and a minimum EER2 (Energy Efficiency Ratio) of 12

What is not eligible:

  • Any home outside of Lincoln city limits
  • Commercial property owners, including multi-family housing
  • Ground source heat pumps
  • New residential construction

How does the program work?

  1. Contact the Urban Development Department at urbandev@lincoln.ne.gov to see if you qualify for the $3,000 City Incentive. Your income must be equivalent to or below 80% of the Lincoln Area Median Income(PDF, 99KB). Approvals must occur before the heat pump is installed to qualify.
  2. See the participating HVAC contractors. Contact one or more of the Sustainable Energy Program participating contractors for bids and available LES incentives. They will apply for the $800 LES incentive on your behalf. Email SEP@les.com with any questions.
  3. 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.

You may also qualify for tax credits:

Federal tax credits are available for up to 30% of the cost of a new heat pump. This credit may be used in addition to the incentives from the City of Lincoln and LES. Visit the ENERGY STAR Air Source Heat Pumps Tax Credit page for further information. The City recommends consulting a tax professional on qualifying equipment and tax deduction details. You may also qualify for additional savings on other electrification updates. Visit the Inflation Reduction Act Calculator for more information.

For more information:

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