Will a smart thermostat save money?

Inquiring minds want to know! Will a smart thermostat save money? Can you really trim your energy bill with a smart thermostat?
Absolutely. And we did the data digging, so you don’t have to.
How will a smart thermostats save money? Let’s find out!
They learn how to reduce energy waste for you.
Wifi-connected smart thermostats use machine learning to understand when you’re home and what temperatures you prefer. Over time, they create a custom heating and cooling schedule that minimizes energy use when you don’t need it, making them far easier to use than a conventional programmable thermostat.

ENERGY STAR and the U.S. Department of Energy report that you can save an average of 8%-10% on your heating and cooling costs using a smart thermostat.
Translation: If your average energy bill is $150 each month, you could save $140-$150 in just one year. This savings would more than cover the cost of many smart thermostats on the market.
Programs like Smart Thermostat Rewards, offered by TVA EnergyRight and participating local power companies, can help you save even more.
Remote access prevents unnecessary heating and cooling.
Never say “Whoops! I did it again. I forgot to turn the air conditioning off.” Although a smart thermostat will learn your routines, you can still mix things up and adjust your settings anytime, anywhere using an app on your smartphone.
This kind of control prevents unnecessary energy use and even gives you the power to pre-condition (pre-cool or preheat) your home before you walk through the door. We call that a convenience and efficiency double-play.
Geofencing and motion sensors optimize efficiency and comfort.
If accessing an app sounds like too much work, rest easy: many smart thermostats use geofencing (based on your phone’s proximity to home) to detect when you’re away and when you’re on your way home and automatically adjust temperature settings for you.
Some also use motion sensors to determine which rooms are in use, prioritizing comfort in the spaces you’re occupying. This zoned comfort approach helps cut back on energy used to heat or cool unused areas of your home.
Make informed choices with the help of energy reports and usage insights.
Smart thermostats generate monthly energy reports that show how much energy you’ve used, how long your system ran each day, and how your energy use compares to other users. These reports may also offer suggestions for improvement.
Find even more ways to save on energy. Take a free DIY Home Energy Assessment today.
With a smart thermostat, comfort and convenience go together like biscuits and gravy.
It’s not just about cutting costs — smart thermostats also improve your home’s comfort and they’re easier to use than conventional programmable thermostats.
Personalized comfort
By learning your schedule and preferences, smart thermostats keep your home at the perfect temperature when you’re there—and scale back when you’re not. You don’t have to keep adjusting the thermostat throughout the day or deal with temperature swings.
Voice control and smart integration
Most smart thermostats are compatible with voice assistants like Amazon Alexa, Google Assistant, or Apple Siri. That means you can change the temperature without lifting a finger.
They may also integrate with other smart home devices, like lights or security systems, for a seamless, connected experience.
How much do smart thermostats cost?
The cost of a smart thermostat generally ranges from $100 to $300, depending on the features and brand. Some utility companies offer rebates or incentives for installing ENERGY STAR® certified smart thermostats, which can lower the upfront cost considerably.
You can shop for and compare smart thermostats on the EnergyRight Marketplace. If you’re thinking about joining Smart Thermostat Rewards (and your local power company is participating in the program), and you have questions about the program, you can find the answers here.
Are smart thermostats worth it?

Note: Features may vary depending on the make and model of your thermostat. Not all local power companies participate in the TVA EnergyRight Smart Thermostat Rewards program.
Smart thermostats offer a powerful combination of energy savings, personalized comfort and modern convenience. With the ability to reduce heating and cooling costs by 10% or more, they’re a smart upgrade for anyone looking to lower their energy bills without sacrificing comfort.
Will a smart thermostat save money? Our research points to “YES.” Whether you’re tech-savvy or just looking for a set-it-and-forget-it solution, a smart thermostat can be a key player in your home’s energy efficiency strategy.
5 fun experiments to teach your kids about thermal energy.

Tired of the chorus of “I’m booooored,” radiating from your kids’ quarters? Build a solar updraft tower, conduct a cooler contest, bake ice cream, create an endothermic reaction, or make a thermometer. These five fun, safe and inexpensive experiments should keep everyone (supervision is always a good idea) productively occupied — for the afternoon, at least.

Build a solar updraft tower.
At full scale, solar updraft towers generate electricity by harnessing the sun’s power. They consist of a central stem that’s surrounded by a greenhouse-like structure. The warmed air rises through the stem, or core, and spins power-generating turbines.
Our version applies the same principles but at table-top scale.
Gather your scientific equipment:
- Black construction paper (about 20 x 20 inches)
- Smaller piece of construction paper (any color)
- Pencil
- Scissors
- Tape
- Piece of modeling clay, formed into a ball
- Wooden skewer
- Plastic needle or toothpick
- Instant read thermometer
- Lamp with incandescent light bulb or heat lamp
- Paper
- Optional: sunshine, and a wind-protected area outside
- Optional: timer
- Optional: white construction paper
Let’s get started:
- Roll your black construction paper into a tapered cone, with a 2” opening at the top, and a 4” opening at the bottom.
- Cut three more-or-less equally distanced, equally sized (approximately 2” long by half an inch tall) arches out of the bottom of your cone. These are your air inlets.
- Use this template to cut a 3” propeller out of construction paper. Bend your “blades” to a 45-degree downward angle.
- Carefully tape a plastic needle or toothpick to a wooden skewer with the pointy end facing upwards.
- Stick the base of the needle-topped skewer into the clay ball and center the black cone over the clay ball.
- Place the propeller on top of the needle. It should be balanced and able to turn freely, like a ceiling fan.
- Record the air temperature inside your tower.
- Now, place a utility lamp with an incandescent light bulb (incandescent bulbs use more energy and generate more heat; that’s why you should use LED bulbs for your home’s lighting fixtures) or a heat lamp at the base of the tower.
- After five minutes, record the air temperature inside your tower and observe what’s happening!
Visit ScienceBuddies.org to learn more about what happened and why!
Conduct a cooler contest.
Ever wondered how coozies keep your cola cold? Mystery solved! For an added dash of sibling rivalry, make two coolers and see which one is the coolest.
Gather your scientific equipment:
- 2-4 equally sized, large plastic food storage containers (one will need a tight-fitting lid).
- 2-4 small plastic food storage containers (they will need to fit comfortably, with room to spare, inside the large containers.
- Similarly sized ice cubes.
- Insulating materials such as cotton balls, bubble wrap, or craft feathers (you’ll need enough to mostly fill your large containers.
Let’s get started:
- Identify a flat, sunny outdoor surface — like a picnic table or sidewalk.
- Fill one of the large plastic containers with one of your insulating materials. This is your “cooler.”
- Place the smaller container in the middle of the larger containers and place an ice cube in each of the smaller containers.
- Quickly put the lid on top of your cooler container.
Which ice cube do you think will last the longest? If you made two coolers with different insulation, which cooler do you think will keep the ice cube cool the longest? How do you think your cooler’s insulation is like the insulation in your home?
SOURCE: Science Buddies
Bake your ice cream.
Generally, we don’t recommend eating your experiments. This is an exception to the rule.
Gather your scientific equipment:
- Mixing bowl
- 3 eggs (at room temperature)
- Cream of tartar
- Salt
- Vanilla extract
- Superfine sugar
- Whisk or electric mixer
- Store-bought cupcakes of your choice (ALT: sponge cake)
- Ice cream
- Parchment paper
- Baking sheet
- Oven
Let’s get started:
- Preheat your oven to 400° F
- Cut the top half of your cupcakes off and place the bottom half on a parchment-lined baking sheet. (Gee, whatever will you do with the tops?)
- Separate the three eggs. (TIP: Have your lab partner crack an egg into your hand and then gently move the yolk from one hand to the other. Let the whites drip into your experiment bowl and put the yolk in a different bowl.)
- Using a whisk or electric mixer, mix the egg whites with ¼ teaspoon cream of tartar, ¼ teaspoon salt, and ½ teaspoon vanilla. Continue mixing until the whites begin to sitffen and can form peaks. This may take a while, but don’t give up, it’s super cool!
- After your meringue (your flavored egg whites) has taken shape, slowly and gradually stir 1 cup of superfine sugar into your meringue.
- Quickly add a small scoop of ice cream to each cupcake half. Be sure the ice cream does not touch the edges of the cupcake.
- Quickly coat each cupcake/ice cream combo with the meringue foam. Make sure the meringue covers the cake and ice cream completely!
- Place the baking sheet on the bottom rack of the oven and set the timer for 10 minutes. Turn the oven light on and check every three minutes to make sure that the meringue is not burning or browning too quickly.
What part of this experiment is acting as insulation?
SOURCE: Scientific American
Create an endothermic reaction.
See how reactions move energy around! We recommend using the kitchen sink as your laboratory.
Gather your scientific equipment:
- Insulated cup
- Instant read thermometer
- Distilled white vinegar
- Baking soda
- Measuring cup
- Tablespoon
Let’s get started:
- Pour ¼ of a cup of vinegar into your insulated cup. Measure and record the temperature of the vinegar.
- Gradually add 1 tablespoon of baking soda into the cup and gently stir with your thermometer.
- Record your observations of temperature changes over time. Does the solution get hotter or colder as the reaction is occurring?
Source: Fizzics Education
Make a thermometer.
Definitely do NOT put this experiment to the taste test!
Gather your scientific equipment:
- Mason jar with straw lid
- Clear straw
- Play dough or modeling clay
- Water
- Rubbing alcohol
- Cooking oil (any kind)
- Food coloring
- Permanent marker
Let’s get started:
- Mix ¼ cup water, ¼ cup rubbing alcohol, a few drops of food coloring and a tablespoon of cooking oil in the mason jar.
- Make marks along the bottom half of your straw at half-centimeter intervals.
- Put the lid on and drop the straw into the mixture.
- Mold the play dough around the straw, sealing any gaps around the straw and holding the straw about ½” off the bottom of the jar.
- Place your thermometer outside in a sunny place and wait 10-20 minutes. Observe what happens.
- Next place it in a bowl of ice. Observe.
SOURCE: wikiHow
What is a mini split heat pump and how does it work?

If you’re researching energy-efficient ways to heat and cool your home, you may have stumbled upon something called a mini split. So, what is a mini split heat pump and how does it work? How is it different from a traditional furnace, radiator heat or heat pumps? Let’s dig in.
Industry experts may also refer to these energy-saving, two-in-one heating and cooling units as ductless heat pumps or ductless mini splits. (Looking for more information about conventional heat pumps, AKA dual fuel heat pumps and air source heat pumps, check out this article.)
We know it’s known by many names but what exactly is a mini split, and how does it work? Let’s find out! This article covers everything you need to know — from how mini split systems operate to why they’re a smart choice for homeowners looking to save energy, lower energy costs and increase comfort.
Find even more ways to save on energy. Take a free DIY Home Energy Assessment today.
What is a mini split heat pump?
A mini split heat pump is a fully electric heating, ventilation and air conditioning (HVAC) system that provides both heating and cooling. Unlike traditional central HVAC systems that rely on ductwork to distribute air throughout your home, ductless mini splits consist of two main components: an indoor air-handling unit (AKA the head unit) and an outdoor compressor/condenser combo.
These units are connected by a small conduit that houses the power cable, refrigerant tubing, suction tubing and a condensate drain.
Because they don’t require ducts, mini split heat pumps are often used in homes or buildings where installing or extending ductwork would be difficult or expensive — such as older homes, homes without existing ductwork, home additions, garages, detached accessory dwelling units (DADUs) or finished basements.
How does a mini split heat pump work?
A mini split heat pump uses the same basic technology as your refrigerator or traditional air conditioner; however, instead of generating hot or cool air, it transfers heat into or out of your home.
In the summer, refrigerant extracts heat from inside your home (expansion) and pumps it outside, where the heat is squeezed out (compression). In the winter, the compressor works as an evaporator, and the cycle is reversed.
Mini split cooling mode:
- The indoor unit absorbs and extracts heat from the air inside your room using a refrigerant-filled coil.
- The refrigerant carries — or pumps — the heat outside to the outdoor unit.
- The outdoor unit squeezes the heat out of the refrigerant and releases it into the outside air.
- Cool air is blown back into your room.
Mini split heating mode:
- The process is reversed.
- The outdoor unit pulls heat from the outside air — even in cold temperatures.
- The refrigerant carries this heat inside.
- The indoor unit pumps warm air into your space.
Thanks to this heat transfer process, mini split heat pumps are highly energy efficient, using 60%-70% less energy to heat your home than a traditional heating system like an electric furnace or radiator.
What are the benefits of a mini split heat pump?
1. They’re energy efficient.
Because mini splits don’t lose energy through ducts (which can account for up to 30% of energy use in traditional systems), they’re often more efficient than ducted HVAC systems. Many models are also ENERGY STAR®-certified and use inverter technology to adjust power use based on the current heating or cooling need.
2. You have more control over temperature zones in your home.
Mini splits give you the power to control the temperature in individual rooms or “zones.” Each indoor unit operates independently, so you can heat one room while cooling another, or turn off units in rooms that aren’t being used.
3. They’re (relatively) easy to install.
Without the need for ducts, mini split systems can be installed by qualified professionals in a variety of places. Wall-mounted units are the most common head unit, but there are also ceiling-recessed and floor-mounted models available.
Looking for a trusted HVAC contractor? Hire a contractor with confidence when you work with a TVA-vetted member of the Quality Contractor Network (QCN).
4. They’re quiet.
Mini split systems are praised for their quiet performance. The noisy compressor stays outside, and the indoor units are designed to operate with minimal sound, making them great for bedrooms, offices or media rooms.
5. They can help lower your energy bill.
While the upfront cost of a mini split system may be higher than a traditional window unit or space heater, the long-term savings in energy costs can be significant, especially if you’re replacing outdated, inefficient systems.
ENERGY STAR notes that “a typical household’s energy bill is around $1,900 annually, and almost half of that goes to heating and cooling.” ENERGY STAR-certified heat pumps are independently verified to save you energy and money, plus they use up to 60% less energy than standard home electric radiators.
How many indoor head units do you need?
One outdoor mini split unit can typically support up to four or five indoor air handlers, depending on the capacity of the system. The number of units you’ll need depends on the size of your home and how many zones you want to control individually.
Other sizing factors include your home’s ceiling height, number of occupants, doors and windows, and how well (or poorly) your home is insulated. (Need an insulation upgrade? Insulation and air sealing rebates are available.)
Your TVA-vetted QCN contractor can help determine the correct size and number of head units for your space using a load calculation based on square footage, insulation, window size and other factors.
What are the disadvantages of mini splits?
While there are a lot of benefits to installing a mini split, there are a few potential downsides to consider:
- Initial Cost: Installation can be more expensive than a window unit or baseboard heater.
- Aesthetics: Some homeowners don’t love the look of wall-mounted indoor units.
- Maintenance: Filters need regular cleaning and professional service is recommended annually.
Is a mini-split right for you?
If you’re looking for an energy efficient, flexible and powerful way to heat and cool your home, a mini split heat pump could be a smart choice. They’re especially well-suited for homes without ductwork, spaces with specific comfort needs and smaller homes.
Saving energy adds up, in a good way, with Smart Thermostat Rewards.

You’re invited to sign up for the new Smart Thermostat Rewards program, brought to you by TVA EnergyRight® and participating local power companies. Tell your friends and neighbors, too!
Smart Thermostat Rewards was carefully designed with input from residents like you and local power companies. This voluntary program rewards participants for using less energy during times of peak energy demand — like a winter cold snap or a summer heat streak.
Saving energy adds up, in a good way.

Frequently asked questions about Smart Thermostat Rewards.
What are the financial benefits of Smart Thermostat Rewards?
You can save on money energy by using less electricity during times of peak demand, plus you’ll also receive a $65 enrollment rebate. Year-round participants will receive an additional $65 annual participation rebate and summer-only participants will receive a $20 annual participation rebate.
What if I don’t have a qualifying smart thermostat?
You can purchase a qualifying Wi-Fi smart thermostat on the TVA EnergyRight Marketplace and receive an enrollment rebate of up to $100.
Why is TVA EnergyRight offering financial rewards for using less electricity?
When temperatures soar in the summer or plummet in the winter, demand for electricity increases.
Programs like Smart Thermostat Rewards help TVA make sure that electricity is available to the entire region during times of peak energy demand. They also help keep electricity more affordable for everyone.
How does the program work?
When you and your friends and neighbors enroll in Smart Thermostat Rewards, you’re agreeing to allow automatic adjustments of up to four degrees for a duration of up to four hours during times of peak demand (up to 60 hours per season). The more participants we have, the better it works for everyone!
Prior to an event, enrolled thermostats may be adjusted to pre-condition — pre-heat or pre-cool — a home so that customers remain comfortable while the event is taking place. Pre-conditioning may not always occur.
When do adjustments typically occur?
Typically, adjustments of up to four degrees, for up to four hours, occur between 6 a.m. and 10 p.m. Summer-only participants (for those who do not have electric heat) can expect events to be called between June 1 and September 30.
How will I know when a temperature adjustment is in progress?
Depending on the thermostat provider, notifications may appear on the thermostat or in your web/mobile application.
Can I opt out of an event or program?
Yes. Although you must maintain a 65% participation rate to remain in the program and receive the $65 (year-round) or $20 (summer-only) participation rebate, you can opt out of an event using your thermostat, mobile app or web browser. You can opt out of the Smart Thermostat Rewards program at any time by emailing TVAEnergyRightSmartThermostatRewards@energyhub.net and requesting to end participation.
Which smart thermostats qualify for the program?
Our participating smart thermostat partners include Alarm.com, Amazon, ecobee, Honeywell Home, Nest and Sensi.
How can I sign up for Smart Thermostat Rewards?
If you have a qualifying thermostat and your local power company is participating in the program, you can visit EnergyRight.com/smartthermostat to enroll.
NOTE: Terms, conditions and pricing are subject to change.
7 federal tax credits for energy efficiency upgrades.

Making energy efficient upgrades to your home can lower your energy bill, make your home more comfortable and reduce your environmental impact. Energy upgrades may also offer significant tax savings.
The federal government offers several tax credits to encourage homeowners and renters to invest in energy-saving improvements. Be sure to speak with your tax advisor for the latest information on local, state or federal tax credits.
Here are some of the top federal tax credits you can claim to make your home more energy efficient.
#1 — Residential Clean Energy Credit
This credit, formerly the Residential Energy Efficient Property Credit, allows homeowners to claim up to 30% of the cost of installing renewable energy systems (IRS.gov). Eligible systems include:
- Solar panels (photovoltaic systems)
- Solar water heaters
- Wind turbines
- Geothermal heat pumps*
- Battery storage systems
*If you’re considering a geothermal heat pump, check out our $3,000 rebate!
#2 — Energy Efficient Home Improvement Credit
Previously called the Nonbusiness Energy Property Credit, this tax credit was recently expanded (TurboTax). If you make qualifying improvements after January 1, 2023, you may be able to claim up to $3,200 annually for qualifying energy-efficient upgrades (IRS.gov), including:
- Insulation and airs ealing materials or systems*
- Heat pumps*
- Water heaters
- Exterior doors
- Exterior windows and skylights
*If you’re thinking about insulation, air sealing or having a new heat pump installed, reach out to a member of our Quality Contractor Network to learn more about incentives from TVA EnergyRight and your local power company.
Explore TVA EnergyRight rebates
#3 — Electric panel upgrade tax credit
If you’re upgrading your home’s electric panel to accommodate new energy-efficient systems, you can claim up to 30% of the cost, up to $600. This credit helps ensure your home’s electrical system can handle increased loads from new appliances or renewable energy installations (ENERGYSTAR.gov).
Source: Energy.gov – Tax Credits for Energy Efficiency
#4 — Energy efficient HVAC systems
As part of the Energy Efficient Home Improvement Credit, your heating, ventilation, and air conditioning (HVAC) systems may also qualify for a credit (ENERGYSTAR.gov). Tax credits may be available for installing:
- Energy-efficient air conditioners*
- Heat pumps*
- Furnaces
- Boilers
*Rebates from TVA EnergyRight and your local power company are also available on qualifying heat pumps, ductless mini-splits, and 15 SEER2 or higher central air conditioning units.
Central air conditioner rebates
#5 — Home energy audit tax credit
A professional home energy audit helps identify areas where your home is losing energy. The Energy Efficient Home Improvement Credit covers 30% of the cost of a home energy audit, up to $150 (Energy.gov). Find a TVA-vetted professional for your Home Energy Evaluation and start saving.
Or, if you’d rather start with a free, DIY Home Energy Assessment, we can help with that, too!
#6 — Energy-efficient water heaters
Replacing an old tank-style water heater with a more energy-efficient on-demand or heat pump model may qualify for a tax credit.
#7 — Smart thermostats
Smart thermostats “learn” your heating and air conditioning preferences (and your schedule) and adjust heating and cooling accordingly to optimize energy use. They may not be eligible for federal credits on their own, but installation costs may be eligible as part of a bigger HVAC upgrade.
Fortunately, we have you covered! Check out our Smart Thermostat Rewards program and learn more about our instant rebate. Or, check out our Smart Thermostat FAQs for more information.
DISCLAIMER: TVA EnergyRight and local power companies do not provide tax, legal or accounting advice. This blog is intended for informational purposes only and should not be relied on for tax, legal, or accounting advice. Consult your own tax, legal, and accounting advisors for more information.
What is a heat pump and how do they work?

We’ve already done a little digging into geothermal heat pumps — so, in this article, we’re shedding some light on the region’s most popular heating and cooling system: the heat pump.
If you’re looking for an energy-efficient way to heat and cool your home, you may have come across the term “heat pump.” But what is a heat pump, and how do they work?
What is a heat pump?
A heat pump is a versatile heating and cooling system that transfers heat from one place to another. Unlike a conventional furnace, which generates heat by burning gas or oil, a heat pump extracts heat from the air, ground, or water.
Heat pumps move heat inside during the winter and outside during the summer. Because heat pumps move heat rather than generate it, they can operate with significantly higher efficiency than conventional heating and cooling systems.
It also means that heat pumps are “twofers” — they do double duty as your heating system in the winter and your central air conditioning system in the summer.
How do heat pumps work?
Heat pumps function using a refrigeration cycle similar to that of an air conditioner. The main components of a heat pump include:
- Evaporator coil – Absorbs heat from the surrounding air, ground, or water.
- Compressor – Increases the temperature of the absorbed heat by compressing the refrigerant gas.
- Condenser coil – Releases the heat into your home in heating mode or expels heat outside in cooling mode.
- Expansion valve – Regulates refrigerant flow to maintain the correct temperature and pressure levels.
In the winter, the heat pump extracts heat from the outdoor air (even in cold temperatures) and moves it indoors. In the summer, the process reverses, and the heat pump removes heat from inside your home and releases it outdoors, keeping your home cool.
Do you have a heat pump?
You may be surprised to find out that you already have one! Our seven-state Valley region holds seven of the top 10 positions for states with the highest percentage of heat pumps.
What are the different types of heat pumps?
There are several different types of heat pumps — and we offer rebates on many of them! Federal tax credits may also be available.
- Air-source heat pumps – The most common type of heat pump, air source or dual fuel heat pumps extract heat from the outdoor air. Get a rebate of up to $800.
- Ground-source (geothermal) heat pumps – Use underground heat for increased efficiency but require extensive installation. Get a rebate of up to $3,000.
- Water-source (geothermal) heat pumps – Transfer heat to and from a water source, such as a lake or well. Get a rebate of up to $3,000.
- Ductless mini-split heat pumps – Ideal for homes without ductwork, providing zoned heating and cooling. Get a rebate of up to $800.
Energy efficiency and SEER2 ratings.
One of the biggest advantages of heat pumps is their high energy efficiency. The efficiency of air conditioners and heat pumps is measured using the Seasonal Energy Efficiency Ratio (SEER) for cooling and Heating Seasonal Performance Factor (HSPF) for heating. In January 2023, the U.S. Department of Energy updated its rating standards to SEER2 and HSPF2, which provides a more accurate measure of a unit’s real-world performance (Air Conditioning, Heating and Refrigeration Institute).
Understanding SEER2 ratings
- Higher SEER2 ratings indicate better cooling efficiency and use less electricity to cool your home.
- Higher HSPF2 ratings mean the heat pump is more efficient at heating, helping you save on winter heating costs.
- The minimum SEER2 rating for heat pumps in our southeastern region is 15.
When purchasing a new heat pump, looking for a model with a high SEER2 rating ensures lower energy consumption and reduced utility bills over time.
How heat pumps help you save money
A major advantage of installing a heat pump — whether it’s geothermal, dual fuel, or a ductless mini-split, is energy savings, which translates into lower utility bills (Energy.gov).
- Efficiency: Heat pumps use electricity to move heat rather than generate it, making them significantly more efficient than traditional heating systems.
- Lower operating costs: Because heat pumps work year-round for both heating and cooling, you can replace separate heating and cooling systems with a single unit, reducing maintenance costs.
- Rebates and incentives: Many federal, state and local programs offer rebates and tax credits for heat pump installations. Be sure to check out all of our rebates to make sure you’re maximizing your savings.
Environmental benefits of heat pumps
Beyond cost savings, heat pumps contribute to a more sustainable future by reducing carbon emissions. Since they use electricity instead of fossil fuels like natural gas or oil, they lower household greenhouse gas emissions. Pairing a heat pump with renewable energy sources such as solar power can further enhance sustainability.
Is a heat pump right for your home?
Our region is ideally suited for heat pumps and more and more homeowners are choosing these money-saving systems over conventional furnaces. If you’re thinking about upgrading your heating and air conditioning systems, reach out to a TVA-vetted member of the Quality Contractor Network to learn more.
With high efficiency ratings, SEER2-rated models, rebates from TVA EnergyRight and government incentives, now is a great time to consider upgrading to a heat pump. By making the switch, you can enjoy year-round comfort, lower energy costs, and a more sustainable home!
Small changes, big impact: The ripple effect of energy efficiency at Journey Coleman School in Memphis.

The air crackled with excitement as students, teachers and the community gathered at Journey Coleman School in Memphis, Tennessee. This was no ordinary Friday — it was a celebration of heritage and progress. The TVA EnergyRight’s School Uplift event coincided with the school’s Black History Month program, creating a powerful fusion of past and present while looking toward a brighter future.
The audience was captivated as the school choir’s harmonies filled the room and dancers took the stage. Students shared heartfelt poetry, their words echoing the resilience and determination that define the North Memphis community. In this neighborhood, where opportunities often feel out of reach, Journey Coleman School is more than just a place of learning — it’s an example of unity, resilience and progress.
The celebration also marked a significant milestone for the school: being awarded a $410,000 TVA EnergyRight School Uplift grant. This substantial investment will fund critical LED lighting and HVAC upgrades, paving the way for a more sustainable and energy-efficient future. The grant represents more than just financial support; it’s a symbol of the community’s commitment to its youth.
An Energy-Efficient Transformation
TVA EnergyRight’s School Uplift supports schools in the region by offering energy efficiency training and grants that reduce energy costs by up to $7,500 per year and improve the quality of the learning environment. The impact of School Uplift at Journey Coleman has been profound. The school has been able to implement crucial upgrades, including LED lighting and HVAC replacements, projects that are projected to save the school over $21,500 annually in energy costs.
Principal Latoya Jeems, who has led the school through this transformative period, embraces the partnership with TVA. “The fact that TVA is invested in schools and the community — that’s the greatest impact.”
By upgrading its infrastructure and reducing energy use, Journey Coleman has not only improved its bottom line but also created a more comfortable and healthy learning environment for its students with better lighting and air quality in the classrooms. These changes have had a ripple effect as students and staff become more conscious of their energy use and how they can contribute to ongoing savings.
Empowering Students as Energy Champions
One of the most exciting elements of School Uplift is its ability to engage students in energy conservation. Journey Coleman students have become active participants in the program, learning the importance of turning off lights, managing energy consumption and understanding how their everyday actions impact the school’s energy savings. This hands-on involvement has turned students into energy champions, and their contributions are expected to drive additional savings.
As Matt Seigel, CFO for Journey Community Schools, notes, “Our students are helping us save money just by being part of the process. They’re learning valuable lessons about conservation, and they’re applying those lessons both at school and at home.”
This focus on student engagement is one of the reasons why School Uplift is more than just an energy efficiency program—it’s an educational tool that teaches real-world skills. Students are not only seeing the immediate impact of their actions but are also developing a broader understanding of sustainability and the role they can play in creating a greener future.
Community Collaboration and Support
For Journey Coleman, the success of the School Uplift program is a reflection of the power of community collaboration. The school’s leadership, staff and students worked closely with TVA and other partners to make the program a reality. These partnerships and the school’s deep commitment to energy savings have resulted in a model that other schools can look to as they embark on their own energy efficiency journeys.
Charlie Caswell, Shelby County Commissioner for District 6, emphasizes the importance of involving community partners in these initiatives. “Anytime we can, from a local government perspective, have partners that are willing to make investments into our community, it’s a tremendous advantage. It allows us to focus on other areas of need for our students and families.”
This collective effort has been critical in making Journey Coleman’s participation in School Uplift such a success. Through the program, TVA has not only provided financial resources but also ongoing support, training and guidance to ensure that the school can maximize its energy savings and continue making improvements for years to come.
A Bright Future
As Journey Coleman School continues to benefit from the changes made through School Uplift, the future looks bright for both the school and its surrounding community. The grant provided by TVA is just the beginning. These investments will continue to pay dividends as the school reaps the rewards of reduced energy costs, enhanced infrastructure and a more engaged student body.
What’s even more promising is the long-term impact of the program. By instilling a culture of energy awareness and conservation within the school, Journey Coleman is laying the foundation for a new generation of energy-conscious individuals who will carry these lessons with them into the future.
“I’ve visited multiple times over the years and have witnessed the evolution of leadership to serve this community. This is a great place to be,” explains Mark Yates, Regional Vice President West Region, TVA.
For TVA, programs like School Uplift are about more than just saving energy. They’re about empowering schools and communities to take control of their energy use, improving learning environments and investing in the well-being of future generations. Journey Coleman’s success is a shining example of what’s possible when schools and communities come together to embrace energy efficiency.To learn more about the School Uplift program and how to apply or to get involved in energy conservation efforts in your community, visit our School Uplift page here.
What you need to know about the 2025 refrigerant transition.

Big changes are coming to the air conditioning world in 2025, and we’re here to help you make sense of them!
In broad strokes, the Environmental Protection Agency (EPA) has issued a mandate to “phasedown” hydrofluorocarbons, and it goes into effect on January 1, 2025. In this post, we’ll dive into the reasons behind the mandate, what it means for you and what we’re doing to help make upgrading your air conditioner more affordable.
What are hydrofluorocarbons (HFCs) and why is the EPA mandating a phasedown?
Hydrofluorocarbons are powerful greenhouse gases developed as replacements for the even more potent chlorofluorocarbons (CFCs), which were banned in the 1980s. Although HFCs may not be as detrimental as the CFCs they replaced, they’re still bad for the environment. That’s why the EPA is phasing down their production and consumption.
What are the costs and benefits of the HFC phasedown?
According to the EPA, “The projected emission reductions of the HFC Allocation Program from 2022 to 2050 are equivalent to 4.6 billion metric tons of carbon dioxide — equal to approximately three years of U.S. power sector emissions at 2019 levels. A global HFC phasedown is expected to avoid up to 0.5°C of global warming by 2100.”
The EPA went on to calculate that the societal benefits between 2022 and 2050 would add up to $169.9 billion (in 2020 dollars).
What does the mandate do?
Basically, it calls for a phaseout of the refrigerant seen in most existing air conditioning units. The refrigerant, R410A, is being replaced by refrigerants that are less harmful to the environment. These new refrigerants are known as R-454B and R-32, and HVAC manufacturers will begin manufacturing equipment that accommodates these new refrigerants.
What are the benefits of the 2025 refrigerant mandate?
The new refrigerants have a much lower Global Warming Potential (GWP). The GWP is a metric developed by the EPA to measure the amount of heat trapped in the atmosphere from greenhouse gases. The new lower GWP refrigerants have a 78% lower GWP than R-4120A and will help the U.S. achieve an 85% HFC phasedown by 2036.
Do I have to replace my existing air conditioner?
No, you can continue to use your existing air conditioner! This new rule restricts products that use R410A from entering the market or entering operation. In fact, you’re welcome to use and repair your system as long as it lasts. However, the availability of HFCs may be harder to find as the phasedown progresses. You can find information about substitute refrigerants here.
To extend the functional life of your heating and cooling systems, be sure to schedule a tune-up in the fall and/or spring. You can find a TVA-vetted contractor here, and save $50 with our HVAC tune-up rebate. You may want to discuss your options with your contractor while they’re taking care of your system.
Tip: Upgrade to a high-efficiency HVAC system, and you could save up to 20% on heating and cooling costs.
If your system must be replaced, be sure to check out all of our rebates on heat pumps, mini splits and central air conditioners.
SEER2 FAQ

To help you see the savings light, we covered the SEER2 basics in “What’s a SEER2 rating?” Read on for a deeper dive into some frequently asked questions about SEER2.
What is SEER?
SEER stands for Seasonal Energy Efficiency Ratio. It measures how efficiently an air conditioner or heat pump cools your home. The higher the number, the more efficient the system is.
Essentially, SEER2 ratings are your heating and air conditioning systems’ version of miles per gallon (MPG) or miles per gallon equivalent (MPGe).
What’s the difference between SEER and SEER2?
Since the SEER system started in 1992, there have been a lot of changes in the technology we use to heat and cool our homes. Plus, our understanding of how things like ductwork and external static pressure can affect efficiency has improved. That’s why the SEER2 standards are now in effect. The new standards more accurately measure system efficiency in real-world conditions.
The calculation is similar to SEER: it measures the cooling output over a season divided by the energy used. However, the testing procedures are stricter, so SEER2 ratings are typically lower than SEER for the same system — not because the system got less efficient, but because the new test is more accurate.
To go back to our car analogy, imagine you’re testing a gas-powered car’s fuel efficiency, but instead of smooth highway driving, you’re towing a boat or you’re stuck in stop-and-go traffic with a trunk full of kitty litter and six cases of water. Your mileage is going to suffer from the added exertion and weight — but it’s likely how you spend a lot of your time behind the wheel! SEER2 does something similar by simulating more realistic conditions for your home’s HVAC systems.
As of January 2024, all new heating, ventilation and air conditioning (HVAC) systems had to have a SEER2 rating. You may notice that new products may be marked with a SEER and SEER2 rating for a few years as manufacturers adopt the new standards.
The SEER2 rating is slightly lower than the original SEER. This accounts for energy leakage in air ducts. For example, a unit with a SEER of 15 will typically have a SEER2 of 14.3. The federal tax credit is determined based on the SEER2 rating. When combined with the new increase in minimum SEER ratings, the energy savings are significant.
Simply put, SEER2 is the total heat removed from a conditioned space during an annual cooling season. Visit SEER2.com for a more detailed dive into testing requirements and procedures.To calculate an air conditioner’s SEER2, for example, we add up all the cooling the system produces during a typical cooling season and divide it by the total electricity it uses during that same time.
How is SEER2 calculated?
Higher SEER2 means the system is more efficient, just like a car that gets more MPGs or MPGes saves you money on gas or electricity.
Just as you’d divide the number miles you drove by the amount of gasoline you put in a gas-powered car to determine your miles per gallon (MPG), SEER2 is calculated by dividing the cooling output of your unit by the watt-hours of energy it consumes.
For example, if your unit produces 10,000 BTUs of cooling power and consumes 1,000 watt-hours it would have a low SEER rating of 10.
What’s the difference between SEER2 and EER?
The efficiency of window air conditioners and portable air conditioning units is generally measured as EER rather than SEER2. SEER2 measures a system’s average efficiency over an entire cooling season, while EER measures efficiency under specific testing conditions. Smaller, single-room window units are less affected by environmental conditions (they don’t have ducts!) than central cooling systems, so EER is a better measure of efficiency for them.
What’s a good SEER2 rating?
As of 2024, the U.S. Department of Energy requires that central air conditioning systems in the seven-state Tennessee Valley region have a minimum SEER rating of 15 and a minimum SEER2 rating of 14.3. The higher the SEER2 number, the more efficient your unit will be. The more efficient your unit, the more money you’ll save over the system’s lifespan.
Typically, ENERGY STAR-certified units have a SEER2 rating of 15.2 (16 SEER) or higher.
Where can I find the SEER2 rating of my unit?
Look for a bright yellow and black EnergyGuide label. If your unit is older, the label may have faded, but it should be there. Not all appliances have this sticker, but most heating and cooling units do. The SEER and SEER2 ratings will be clearly labeled.
If you don’t see the sticker, you can do an online search using the manufacturer, model number and unit size to determine your system’s rating.
What makes an air conditioner high efficiency?
It’s all about the compressor and condenser. Air conditioners with SEER2 ratings between 14 and 16 use the same basic technology. AC units with a SEER2 rating of 17 and higher use a different type of compressor and condenser fan to achieve maximum efficiency.
What products are affected by SEER2 regulations?
- Air conditioner condensing units
- Heat pumps
- Single packaged units
- Evaporator coils
- Gas furnaces
Are there rebates available on SEER2 air conditioning units and heat pumps?
Yes! You can find rebates from TVA EnergyRight here. Federal tax credits are also available.
What’s a SEER2 rating?

Sorry to spoil your fun: Your HVAC contractors aren’t all-seeing masterminds, peering into your energy-savings past, present and future. SEER stands for seasonal energy efficiency ratio. When it comes to your heat pump, mini split or air conditioner, it indicates the unit’s maximum energy efficiency.
Fun Fact: Since the SEER system started in 1992, there have been a lot of changes in the technology we use to heat and cool our homes — and our understanding of how things like ductwork and external static pressure can affect efficiency have also improved. That’s why the SEER2 standards are now in effect. The new standards more accurately measure system efficiency in real-world conditions.
Basically, the higher the SEER2 rating, the more efficient the unit is. In this post, we’ll share the information you need to understand SEER2 ratings and how they apply to our Valley region. For a deeper dive into SEER2 ratings, check out our SEER2 FAQs.

What are the benefits of higher SEER2 ratings?
If you’re in the market for a new heating and cooling system, choosing a unit with a higher SEER2 rating has some notable benefits:
#1 — Energy savings
Higher-efficiency air conditioners and heating systems can cost more up-front; however, you will save money on energy costs in the long run. You can easily determine the lifetime savings for different SEER2 ratings using a SEER savings calculator. Rebates from TVA EnergyRight and federal tax credits can help offset the initial higher cost of energy efficient air conditioners and heat pumps.
#2 — Quieter operations
Generally speaking, high-efficiency units are quieter than low-efficiency ones. Still, if you have a vote in your system’s location, keep it as far from a bedroom as possible.
#3 — Gentler on the environment
Lower your carbon footprint with high-efficiency heating and cooling systems that use less energy. All air conditioning units installed after 2025 will use a new refrigerant — R-454B and R-32 — to conform to the EPA’s hydrofluorocarbon phasedown mandate.
#4 — Rebates and tax credits
We already mentioned this one, but it bears repeating! TVA EnergyRight offers rebates up to $3,000 on heat pumps and a $400 rebate on central air conditioners with a 17 SEER2 or higher. As part of the Inflation Reduction Act of 2022, federal income tax credits of up to $3,200 are available to lower the cost of energy efficient home upgrades by up to 30%.