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Residential Heating and Cooling Program Requirements

1. Program Overview

This document outlines eligibility requirements for residential heating and cooling equipment rebates offered through Focus on Energy. These guidelines ensure equipment meets program, efficiency, and installation standards prior to application.

For geothermal heat pump–specific requirements, visit: https://focusonenergy.com/residential/geothermal.

2. General Program Eligibility Requirements

Customer & Property Eligibility

  • The Applicant must either be the property owner or the account holder of the electric and/or natural gas service for the site where the equipment is installed.
  • Unless otherwise stated, a project site must receive service from a participating electric utility and a participating natural gas utility at the time of purchase and installation to qualify for a rebate. Participating utilities can be verified at https://focusonenergy.com/about/participating-utilities.
  • Eligible properties include:
    • Single-family homes
    • Multifamily buildings with three or fewer units under one roof
    • Multifamily buildings with four or more units when the equipment serves only one dwelling unit
  • New construction is not eligible. Information on new home offerings is available at https://focusonenergy.com/new-home-certification/.

Project Timing & Rebate Limits

  • Equipment must be purchased and installed between January 1 and June 30, 2026.
  • Rebates are capped at $400,000 per customer per calendar year.
  • Rebates may not exceed the total purchase price of eligible equipment.
  • Only one Focus on Energy rebate may be issued per piece of equipment, and rebates may be paid to only one entity (resident or landlord).

Application Requirements

To be considered complete, applications must:

  • Be submitted within 60 calendar days of installation.
  • Be signed by the purchaser or an authorized representative.
  • Include itemized invoices or receipts clearly showing:
    • Equipment make and model numbers
    • Quantity of units installed
    • Total installed cost
    • Purchase and/or installation date
    • Contractor name, address, and phone number
  • Incomplete applications may delay processing or result in denial. Rebate processing typically takes 8–10 weeks, and submission does not guarantee approval.

3. Equipment Eligibility Requirements

Equipment & Installation Standards

All rebated equipment must:

  • Replace existing equipment serving the same function
  • Be new and unused (resale, leased, rebuilt, rented, or prize equipment is not eligible).
  • Be installed, operational, and located at the address listed on the application prior to submission.
  • Be subject to verification inspection if requested by Focus on Energy.

Smart Thermostats

  • Limited to one rebate per heating system and two rebates per household.
  • The home must be heated by a natural gas furnace, natural gas boiler, electric baseboard, or air source heat pump. Homes heated by LP, oil, or wood are not eligible.
  • The thermostat must control the home’s primary heating source and replace a standard (manual) or programmable thermostat.
  • Equipment must appear on the Smart Thermostat Pre‑Qualified Equipment List, be certified as an ENERGY STAR® Connected Thermostat, or meet all of the following criteria:
    • Wi‑Fi enabled with built-in internet connectivity
    • Occupancy sensing using geolocation and/or motion detection
    • Free mobile application and connectivity service after purchase
    • Default temperature setback when the home is unoccupied
    • No add-on devices required to enable above mentioned features
  • The customer must establish Wi‑Fi connectivity.
  • Thermostats serving water heaters or geothermal systems are not eligible.

Electronically Commutated Motor (ECM) Replacement

  • Must replace an existing permanent split capacitor (PSC) blower motor in a furnace or air handler.
  • The existing furnace must:
    • Have an AFUE rating of 90% or greater
    • Be a sealed combustion unit
    • Serve as the home’s primary heating source
  • Equipment must appear on the ECM Pre‑Qualified Equipment List.
  • Site is only required to be a customer of a participating electric utility.

Single Package Vertical Units

  • Equipment must meet the following minimum efficiency requirements:
    • Greater than 90% thermal efficiency for natural gas heating
    • 11.0 EER or greater for cooling, when applicable
  • Efficiency ratings must be verified using the AHRI database.

Package Terminal Heat Pumps (PTHP)

  •  Must replace an existing package terminal air conditioner (PTAC). Replacement of an existing PTHP is not eligible.
  • Window-mounted and through-the-wall units are not eligible.
  • Equipment must meet both heating and cooling efficiency requirements by size category:
    • Less than 8,000 BTUh: greater than 10.7 EER and 3.1 COP
    • 8,000–9,999 BTUh: greater than 10.4 EER and 3.0 COP
    • 10,000–12,999 BTUh: greater than 9.9 EER and 2.9 COP
    • 13,000 BTUh and greater: greater than 9.3 EER and 2.9 COP
  • Efficiency ratings must be verified using the AHRI database and the unit must be listed as a Commercial PTHP.
  • Site is only required to be a customer of a participating electric utility.
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