Heating and Cooling

Enjoy year-round comfort and savings!

When you consider heating and cooling accounts for nearly half of an average home’s energy usage, it’s easy to see how the right mix of improvements can deliver sizable savings.

Choose from a menu of energy-saving options, including a new furnace, boiler, smart thermostat, or water heater. You can receive incentives for each individual improvement, or make multiple upgrades at once and increase your incentives.

Signs its time for an upgrade:

  • Your heating and cooling equipment is unreliable, inefficient, or over 15 years old.
  • You’ve noticed excessive blower noises, or sporadic pops, bangs, or rattles from your furnace.
  • Your energy bills have gone up.
  • Your home is cold and uncomfortable.

Improvements are made through a Focus on Energy Trade Ally contractor who will guide you through the process and complete the installations. Our partnering Trade Allies receive specialized training and program resources that set them apart from other contractors.

Find a Trade Ally contractor to install your new equipment.

How do I get incentives for my new equipment?

  1. There are two incentive tiers: standard Tier 1 and Tier 2 for income-eligible customers. See if you qualify for Tier 2 incentives by clicking Show Details below and then Tier 2 Eligibility.

  2. Purchase equipment from the pre-qualified equipment lists. Equipment lists can be found in the equipment qualifications section below.

  3. Apply online or download and submit your Heating and Cooling Incentive Application(PDF) and required supporting documentation within 60 days of installation. 

Show Details

Incentives and Eligibility

Incentives valid January 1, 2018 through June 30, 2018

Heating and Cooling Equipment Tier 1   Tier 2  
     Incentive    Incentive  w/
Smart Thermostat*
    Incentive    Incentive  w/
Smart Thermostat*

Natural gas multi-stage furnace with ECM, 95%+ AFUE

$125

 $250

$525

$650

Natural gas multi-stage furnace with ECM and 95%+ AFUE 
installed with a 16+ SEER central air conditioner

$250

$375

$750

$875

Modulating natural gas boiler with outdoor reset control, 95%+ AFUE

$400  

$525

$550

$675

Modulating combination natural gas boiler with integrated domestic hot water and outdoor reset control, 95%+ AFUE

$500 

$625

$675

$800

Natural gas furnace, 95%+ AFUE

NA

NA

$350

$475

Propane multi-stage furnace with ECM, 90%+ AFUE

$100

NA

$300

NA

Indirect water heater (installed at the same time as qualified boiler)

$100

NA

$150

NA

Air source heat pump 16+ SEER and 8.4+ HSPF (propane, oil or electric furnace only; cannot be a mini-split or ductless system)

$300

$425

$300

$425

ECM replacement (must replace PSC motor)

$100

NA

$100

NA

Ductless/mini-split heat pump for electric resistance heated home, 18+ SEER and 9.0+ HSPF (only for homes heated solely with electric resistance heat)

$500

NA

$500

NA

Smart thermostat stand-alone (not installed along with new program qualified HVAC equipment). For use with natural gas furnace, natural gas boiler, and air source heat pump only.

$75 NA $75 NA

*Includes installation and smart thermostat incentive. NOTE: Work with your Trade Ally to ensure the equipment you install qualifies for Focus on Energy incentives. Qualified equipment lists and complete eligibility requirements are listed in the Equipment Qualifications section.

$250 BONUS when you complete Whole Home Improvements and Heating and Cooling Improvements together within 90 days of each other. Tier 1 and Tier 2 are eligible. Please note the bonus does not include smart thermostat stand-alone. 

Tier 2 Eligibility

2018 State Median Income Limits by Household Size

You may be eligible for larger Tier 2 incentives if your household income level is at or below the limits outlined in this table.

Household Size Annual Income 80% SMI 3 Month Income 80% SMI
1 $35,467 $8,867
2 $46,381 $11,595
3 $57,294 $14,323
4 $68,207 $17,052
5 $79,120 $19,780
6 $90,033 $22,508
7 $92,079 $23,020
8 $94,125 $23,531
9 $96,171 $24,043
10 $98,218 $24,554
11 $100,264 $25,066

Follow these steps to be approved for Tier 2 incentives:

  • Download the Income Eligibility Application or call 855.339.8866.
  • Review the Income Guidelines for program terms and instruction.
  • Collect required documentation and submit your application.
  • Receive approval notification and move forward with your projects.

Equipment Qualifications

Air Source Heat Pump

Air Source Heat Pump

  • Air source heat pump with a minimum of 16 seasonal energy efficiency ratio (SEER) and a minimum of 8.4 heating seasonal performance factor (HSPF).
  • SEER and HSPF based on AHRI database, found at ahridirectory.org, for furnace/air handler, coil, and condenser.
  • Coil and condenser must be purchased and installed at the same time.
  • Furnace must be LP, oil, or electric fired (natural gas furnaces are not eligible). Must be primary heating source for the home's living space.
  • Ductless or mini-split systems do not qualify for this incentive. See ductless mini-split requirements to ensure your equipment and heating system qualify.
  • Cannot combine with Focus on Energy furnace, ECM replacement, or ductless mini-split incentive.
  • Must be a customer of a participating electric utility
  • Limited to customers who do not have access to natural gas.

Ductless Mini-Split Heat Pump

Ductless Mini-Split Heat Pump for Electric Resistance Heated Home, 18+ SEER and 9.0+ HSPF 

  • Ductless mini-split heat pump with a minimum of 18 seasonal energy efficiency ratio (SEER) and a minimum of 9.0 heating seasonal performance factor (HSPF).
  • SEER and HSPF based on AHRI database, found at ahridirectory.org, for indoor unit.
  • Must be a customer of a participating electric utility.
  • Only homes heated solely by electric resistance heat are eligible. Homes heated with fuel oil, propane fuel (LP), or natural gas are not eligible.
  • Must augment/replace electric resistance heating (electric baseboard, electric furnace).
  • Limit one incentive per outdoor unit (condenser).

Electronically Commutated Motor (ECM) Replacement

ECM Replacement

  • Must replace a permanent split capacitor (PSC) blower motor in an existing furnace or air handler.
  • Existing furnace must have an annual fuel utilization efficiency (AFUE) of 90 percent or greater.
  • Existing furnace must be a sealed combustion unit.
  • Must be a customer of a participating electric utility.
  • Furnace must be the primary heating source for the home's living space.

High-Efficiency Boilers

Modulating Natural Gas Boiler with Outdoor Reset Control, 95% AFUE

  • Boiler must have an input capacity less than 300 MBH (Thousand British Thermal Units per Hour).
  • Boiler must be sealed combustion unit.
  • Only natural gas boilers are eligible.
  • Boiler must be the primary heating source for the home's living space.
  • Boiler must have a modulating burner and include an outdoor-air reset control (integrated).
  • Chimney liners must be installed where a high-efficiency gas boiler replaces an atmospherically-drafted boiler and only a water heater remains vented through the chimney. The interior opening left by the removed boiler must be closed with a metal cap and sealed with caulk or mortar.

High-Efficiency Combination Boilers

Modulating Combination Natural Gas Boiler with Integrated Domestic Hot Water
and Outdoor Reset Control, 95%+ AFUE

  • Boiler must have an AFUE of 95 percent or greater.
  • Boiler must have a modulating burner and include an outdoor-air resent control (integrated).
  • Boiler must have an input capacity less than 300 MBH (Thousand British Thermal Units per Hour).
  • Boiler must be sealed combustion unit.
  • Domestic hot water storage may not exceed two gallons.
  • Must be a customer of a participating natural gas utility and use natural gas for home heating. Boilers must also be the primary heating and domestic water heating source for the home. Only natural gas boilers are eligible.
  • Chimney liners must be installed where a high-efficiency gas boiler replaces an atmospherically-drafted boiler and only a water heater remains vented through the chimney. The interior opening left by the removed boiler must be closed with a metal cap and sealed with caulk or mortar.

High-Efficiency Furnaces

Propane Multi-Stage Furnace with ECM, 90%+ AFUE

  • Furnace must have an annual fuel utilization efficiency (AFUE) of 90 percent or greater.
  • Must be a customer of a participating electric utility.
  • Propane furnaces are eligible. Electric, oil, and natural gas furnaces are not eligible.
  • Furnace must have a multi-stage or modulating burner.
  • Furnace must have an electronically commutated motor (ECM). An ECM is sometimes referred to as a variable speed, constant-airflow, constant torque, electronically efficient (EEM), or X-13 motor. A permanent split capacitor motor (PSC), single- or multi-speed, does not qualify.
  • Furnace must be a sealed combustion unit and must be the primary heating source for the home's living space.
  • Chimney liners must be installed where a high-efficiency gas furnace replaces an atmospherically-drafted furnace and only a water heater remains vented through the chimney. The interior opening left by the removed furnace must be closed with a metal cap and sealed with caulk or mortar.

Natural Gas Multi-Stage Furnace with ECM, 95%+ AFUE

  • Furnace must have an annual fuel utilization efficiency (AFUE) of 95 percent or greater.
  • Must be a customer of a participating electric utility and a participating natural gas utility. Customer must use natural gas for home heating.
  • Only natural gas furnaces are eligible.
  • Furnace must have a multi-stage or modulating burner.
  • Furnace must have an electronically commutated motor (ECM). An ECM is sometimes referred to as a variable speed, constant-airflow, constant-torque, electronically-efficient (EEM), or X-13 motor. A permanent split capacitor motor (PSC), single- or multi-speed motors are not eligible.
  • Furnace must be a sealed combustion unit and must be the primary heating source for the home's living space.
  • Chimney liners must be installed where a high-efficiency gas furnace replaces an atmospherically-drafted furnace and only a water heater remains vented through the chimney. The interior opening left by the removed furnace must be closed with a metal cap and sealed with caulk or mortar. 

High-Efficiency Furnace and Air Conditioner Combination

Natural Gas Multi-Stage Furnace with ECM and 95%+ AFUE 
Installed with a 16+ SEER Central Air Conditioner

  • Furnace must have an annual fuel utilization efficiency (AFUE) or 95 percent or greater.
  • Seasonal energy efficiency ratio (SEER) for the combination of the furnace, outdoor unit, and inside coil must be 16 or greater. SEER based on AHRI database, found at ahridirectory.org, for furnace/air handler, coil, and condenser.
  • Must be a customer of a participating electric utility and a participating natural gas utility and use natural gas for home heating.
  • Qualified furnace and air conditioner must be installed at the same time and may not be combined with individual equipment incentives.
  • If installing a qualified furnace and air conditioner and the condenser cannot be set due to weather:
    • The evaporator coil must be installed at the same time as the furnace.
    • The invoice must include the condenser model and state when the condenser will be installed.
    • The application must be submitted within 60 days of the furnace and evaporator coil installed.
  • Furnace must be a sealed combustion unit and must be the primary heating source for the home's living space.
  • Furnace must have a multi-stage burner or modulating burner.
  • Furnace must have an electronically commutated motor (ECM). An ECM is sometimes referred to as a variable speed, constant-airflow, constant torque, electronically efficient (EEM), or X-13 motor. A permanent split capacitor motor (PSC), single- or multi-speed, does not qualify. A Pre-Qualified Equipment list is available below.
  • Chimney liners must be installed where a high-efficiency gas furnace replaces an atmospherically-drafted furnace and only a water heater remains vented through the chimney. The interior opening left by the removed furnace must be closed with a metal cap and sealed with caulk or mortar.
  • An air source heat pump cannot be used to meet the air conditioner portion of this incentive.

Indirect Water Heater

Indirect Water Heater for Home Heating Boiler

  • Qualified boiler must be installed at the same time and may not be combined with individual equipment incentives.
  • Indirect water heater incentive is not available with boilers that were previously installed.
  • Boiler must have an input capacity less than 300 MBH (Thousand British Thermal Units per Hour).
  • Boiler must be a sealed combustion unit.
  • Only natural gas boilers are eligible.
  • Boiler must be the primary heating source for the home's living space.
  • Boiler must have a modulating burner and include an outdoor-air reset control (integrated).

Smart Thermostat

PLEASE NOTE: If purchased online or from a retailer, please use the Retail Smart Thermostat Application available at focusonenergy.com/smart.

  • Must be purchased and installed by a qualified heating and cooling contractor.
  • Smart thermostat must be installed at the same time as a program-qualified furnace, boiler, or air source heat pump. Does not qualify if installed with ductless mini-split, ECM replacement, or water heater.
  • Eligible models must be selected from the Focus on Energy qualified product list available at focusonenergy.com/smart.
    • Program-qualified smart thermostats must feature integrated occupancy-sensing capability, such as motion sensors and/or geofencing with setback.
  • Smart thermostat must be installed to use with the home's primary heating source for the home's living space.
    • Homes heated by LP (liquid propane), oil, wood, or electric resistance are not eligible for the smart thermostat incentive.
    • Homes heated with a geothermal system are not eligible for the smart thermostat incentive.
  • Smart thermostat must replace an existing thermostat that does not qualify for program incentives.
  • The customer must establish the Wi-Fi connection for program-qualified smart thermostats.
  • Limit one smart thermostat incentive per home heating system.
  • Installation of a smart thermostat is only eligible for an incentive if it is purchased new. Resale material or material that is leased, rebuilt, rented, received from insurance claims, received from a manufacturer warranty, purchased through other Focus on Energy programs, or won as a prize do not qualify.
  • Must be a customer of a participating utility.