Lincoln Celebrates Heat Pump Program Success on Earth Day

Published on April 22, 2024

Program draws 176 participants; Lincoln residents save money, reduce emissions

Mayor Leirion Gaylor Baird today reported that 176 households have participated in the residential 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, that is still available through the program.

“On this Earth Day, we are thrilled 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 cleaner indoor air quality, and reduce greenhouse gas emissions.”

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

Under the program, Lincoln homeowners are 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. Both may 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 which keep your home comfortable year-round.

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

The City has allocated 58% or $158,000 in incentives for the general population, 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 burning fossil fuels like gas and oil that cause pollution. We still have funds available, and we make the process simple and fast for residents,” said Peter Hind, Urban Development Department Director.

Incentive details include:

Only homeowners or single-family rental property owners of single-family residences within Lincoln city limits are eligible. Low- and moderate-income homeowners who meet income guidelines may qualify for a 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.

The incentive covers purchase and installation of air source heat pumps with a minimum Seasonal Energy Efficiency Rating of 15.2 and a minimum Energy Efficiency Ratio of 12. 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 and residents are urged to consult a heating/cooling expert to determine the best options for their homes.

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

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