How to Leverage Incentives for Energy-Efficient Upgrades
Written by Ed Rice
Upgrading to energy-efficient HVAC and refrigeration systems is a smart investment that reduces energy costs, improves system performance, and supports sustainability initiatives. However, one of the biggest hurdles for businesses considering these upgrades is the upfront cost. Fortunately, rebates, tax credits, and financial incentives can significantly offset these costs, making energy-efficient upgrades more accessible and cost-effective.
In this blog, we’ll explore how businesses can take advantage of energy efficiency incentives, where to find them, and how Northstar Refrigeration can help you maximize savings on your next upgrade.
Why Invest in Energy-Efficient Upgrades?
Energy-efficient HVAC and refrigeration systems provide:
Lower energy bills – Reducing electricity and fuel consumption leads to significant savings.
Regulatory compliance – Meeting evolving government regulations for efficiency and emissions.
Enhanced building performance – Improving air quality, temperature control, and occupant comfort.
Sustainability benefits – Reducing carbon footprint and supporting corporate sustainability goals.
Increased property value – Energy-efficient upgrades make buildings more attractive to tenants and buyers.
Given these benefits, finding the right incentives can make these upgrades even more financially appealing.
Types of Incentives for Energy-Efficient Upgrades
1. Utility Company Rebates
Many utility providers offer rebates and financial incentives for businesses that install energy-efficient HVAC and refrigeration systems. These rebates typically cover:
HVAC system upgrades (high-efficiency furnaces, heat pumps, air conditioners).
Refrigeration improvements (high-efficiency walk-in coolers, commercial freezers).
Smart thermostats and controls that optimize energy use.
Where to Find Utility Rebates:
Mass Save (for businesses in Massachusetts) provides instant rebates for energy-efficient equipment upgrades.
National Grid, Eversource, and other regional utilities offer customized incentives for energy-efficient HVAC and refrigeration systems.
Action Step: Contact your local utility company or visit their website to explore available rebates.
2. Federal and State Tax Credits
The Inflation Reduction Act (IRA) and other federal programs offer tax credits for energy-efficient upgrades. Businesses may be eligible for:
30% tax credit for qualifying HVAC and refrigeration upgrades.
179D Commercial Energy Efficiency Deduction for businesses making energy-saving improvements.
Where to Find Tax Credits:
The IRS website provides details on federal tax credits for businesses.
State-specific programs (e.g., Mass Save in Massachusetts) offer additional deductions and credits.
Action Step: Consult with a tax professional to determine which credits apply to your business.
3. Local and State Energy Efficiency Grants
Many states and municipalities offer grants and low-interest financing for energy-efficient building improvements. Programs like:
PACE (Property Assessed Clean Energy) financing, which allows businesses to finance energy-efficient upgrades through property tax assessments.
State-funded efficiency programs that provide additional financial assistance.
Action Step: Search for energy efficiency grant programs in your state or city.
4. Manufacturer and Industry-Specific Incentives
Certain HVAC and refrigeration equipment manufacturers offer rebates on high-efficiency models. Additionally, industries such as food service and healthcare often have specialized incentive programs to improve energy efficiency.
Action Step: Ask your equipment provider or contractor about manufacturer rebates.
How to Take Advantage of Incentives
Step 1: Conduct an Energy Audit
An energy audit will help you identify which upgrades will provide the biggest energy savings and which qualify for incentives. Many utility companies offer free or discounted audits as part of their efficiency programs.
Step 2: Research Available Rebates and Tax Credits
Check local utility company websites, government energy programs, and manufacturers for eligible incentives. If you're unsure where to start, an HVAC contractor experienced in efficiency programs can help.
Step 3: Work with a Certified Contractor
To qualify for many rebates and incentives, upgrades must be installed by an approved contractor. Northstar Refrigeration specializes in energy-efficient HVAC and refrigeration installations and can ensure compliance with rebate requirements.
Step 4: Apply for Incentives and Rebates
Each program has its own application process, deadlines, and documentation requirements. Some rebates offer instant discounts at the time of purchase, while others require submission of energy savings documentation after installation.
Step 5: Track Energy Savings and ROI
Once the upgrades are installed, monitor energy bills and system performance to track savings. Many businesses see a return on investment (ROI) within a few years, thanks to reduced operating costs and incentives.
How Northstar Refrigeration Can Help
At Northstar Refrigeration, we specialize in helping businesses maximize energy efficiency while taking advantage of available incentives. Our team can:
Conduct energy audits to identify the best upgrades for your facility.
Navigate rebate and incentive programs to help lower upfront costs.
Install high-efficiency HVAC and refrigeration systems that qualify for financial incentives.
Ensure regulatory compliance with the latest energy standards and refrigerant transitions.
Contact us today at (508) 888-3692 to learn how you can take advantage of energy efficiency incentives and start saving on your HVAC and refrigeration upgrades.
Final Thoughts
Upgrading to energy-efficient HVAC and refrigeration systems doesn’t have to be a financial burden. With the right rebates, tax credits, and incentives, businesses can significantly reduce the cost of equipment while lowering energy bills and improving sustainability.
By partnering with an experienced contractor like Northstar Refrigeration, you can ensure you get the best possible savings while future-proofing your facility with modern, energy-efficient solutions.
Ready to make the switch to energy-efficient HVAC and refrigeration? Let Northstar Refrigeration help you save money and reduce your energy footprint. Call us today to learn more!
(508) 888-3692
www.northstarhvacr.com