Heating up savings and cooling costs with HVAC incentives.
TVA EnergyRight® and your local power company are offering $80/ton or $175/ton incentives for energy efficient heating ventilation and air conditioning (HVAC) replacements; $175/ton for expansions and new installations; and $250/ton toward the purchase of qualified variable refrigerant flow (VRF) and dual fuel heat pumps.
Control costs and improve comfort.
Careful selection, installation, operation and maintenance of HVAC systems can yield substantial energy savings, help control seasonal spikes in energy use, and improve comfort and air quality in your commercial or industrial setting.
Benefits of upgrading your HVAC system
Lower your monthly energy bill.
Save energy.
Lower your carbon footprint.
Improve workplace comfort and air quality.
Reduce maintenance costs.
Control seasonal spikes in energy use.
HVAC incentive eligibility and requirements
| Existing Equipment | Recommended Energy Efficient (EE) Replacement | Like for Like | New or Expansion | Value |
|---|---|---|---|
A — VRF heat pumps (with electric resistance heat backup) | VRF heat pumps (with electric resistance heat backup) | Yes | No | $80 |
B — VRF heat pumps (with or without electric resistance heat backup) | VRF heat pumps (without electric resistance heat backup) | Yes | No | $80 |
C — dual fuel heat pumps | dual fuel heat pumps | Yes | No | $80 |
D — unitary heat pumps (with electric resistance heat backup) | unitary heat pumps (with electric resistance heat backup) | Yes | No | $80 |
E — unitary heat pumps (with or without electric resistance heat backup) | unitary heat pumps (without electric resistance heat backup) | Yes | No | $80 |
F — unitary air conditioners (AC) | unitary AC | Yes | No | $80 |
G — unitary air conditioners (AC) | unitary AC advanced tier | Yes | Yes | $175 |
H — unitary AC (with electric resistance heat backup) | unitary heat pumps (with electric resistance heat backup) | Yes | No | $80 |
I — gas heat | dual fuel heat pumps or VRF (without electrical resistance heat backup) | No | No | $250 |
J — new installation or expansion | dual fuel heat pumps or VRF (without electrical resistance heat backup) | No | Yes | $250 |
Ineligible
| Existing | Ineligible Replacement | Like for Like | Value |
|---|---|---|---|
K — VRF heat pumps without electric resistance heat backup | VRF heat pump with electric resistance heat backup | N/A | N/A |
L — unitary heat pumps without electric resistance heat backup | unitary heat pumps with electric resistance heat backup | N/A | N/A |
M — unitary AC with gas heat | unitary heat pumps with electric resistance heat backup | N/A | N/A |
N — gas heat, new or expansion | VRF heat pumps with electric resistance heat backup | N/A | N/A |
$80/ton HVAC replacements (high-efficiency, must meet minimum requirements) must be “like-for-like.” For example, an older inefficient heat pump can be replaced with a new high-efficiency heat pump (cannot have strip heat).
An estimated completion date will be entered in the online application. Customer will receive application approval communication with an estimated incentive. Equipment may be purchased prior to the approval communication. Once the equipment is installed, invoices must be submitted within 30 days.
$175/ton HVAC replacements OR expansion and new installation must be high-efficiency and meet CEE Advanced Tier requirements.
Electric resistance heat NOT eligible for new construction or new equipment in existing facilities.
$250/ton toward the purchase of qualified variable refrigerant flow (VRF) and dual fuel heat pumps.
Dual fuel heat pumps for beneficial electrification must operate with a 25-degree Fahrenheit set point for backup gas heating. (Gas heating must not energize until the ambient temperature has fallen to 25 degrees Fahrenheit.)
Installation types: Replacement, New Construction and New Equipment in Existing Facility.
All HVAC units must meet AHRI standards (210/240, 320 or 340/360) and must be certified by nationally recognized testing laboratories (Ex., UL, ETL listing).
Application must be sent within 60 days of the installation date of the HVAC unit(s) based on required invoices and spec sheets uploaded to the online application.
Equipment must meet only one of the efficiency categories listed in the efficiency standards tables, based on the size of the unit.
Subject to funding availability. Additional rules may apply.
If the equipment you wish to install is not displayed in the efficiency requirements PDF below, it does not qualify for an incentive. Contact the operations center at (866) 233-0450 for more information.
Let's get started.
To learn more about how to apply for the HVAC incentive or any of our incentive offerings, check out our incentive application guide.
Apply for your incentive through the Preferred Partners Network (PPN)
Applications for TVA EnergyRight incentives must be submitted through a contractor member of our Preferred Partners Network for approval before any incentive-based work begins.
If your contractor is not part of our network please call (866) 233-0450 or email TVABusinessIncentive@tva.gov and we can assist you.
Select a PPN member.
Find a contractor to complete your project. Our Preferred Partners Network has the trusted contractor for your project needs!
Define your scope of work.
Not sure yet what you need? PPN members can help you define your project.
Sign incentive application.
Your PPN member will submit your application to TVA EnergyRight after you provide an electronic signature.
Work can begin following project approval. Please don’t remove or install equipment until your project is approved and you have received your Application Approval Notice via email.
Start by finding a TVA-vetted contractor
Find a contractor from our Preferred Partners Network.
Not ready to start a project but want to stay up to date?
Still have questions?
Our team is ready to answer your questions so you can start saving. Call (866) 233-0450 or email TVABusinessIncentive@tva.gov.
Business & Industry resources.
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