Heat Pump Incentives

Photograph of heat pump

Lincoln homeowners are now eligible for a $1,000 City of Lincoln-funded incentive toward the purchase of an air source heat pump. Eligible low-income residents who apply will receive $3,000 in City funds. Both may be combined with an $800 incentive from the Lincoln Electric System (LES) Sustainable Energy Program. Funds are available on a first-come, first-served basis through 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. The City of Lincoln is proud to to help our community save on heating and cooling costs, enjoy cleaner indoor air quality, and reduce greenhouse gas emissions.

Who is eligible:

  • Homeowners or single-family rental property owners in the City of Lincoln (single-family residences only)
  • Low- and moderate-income homeowners who meet income guidelines may qualify for the higher rebate through the Urban Development Department's housing support programs. For more information, please see the City's Home Rehabilitation section on the Housing Support page.

What is included:

  • 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 included:

  • 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?

  • Participating contractors will apply for both the City incentive and LES incentive on your behalf.
  • Visit LES.com/SEP to see the list of participating HVAC contractors and additional information about the program. Email SEP@les.com with any questions.
  • Contact one or more of the Sustainable Energy Program participating contractors for bids and available incentives.
  • 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.

Additional tax credits are available:

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.