HVAC incentive offering

HVAC (heating, ventilation and air conditioning) systems have a major impact on energy usage. Proper selection, installation, operation and maintenance of HVAC systems can yield substantial energy savings, help control seasonal spikes in energy usage and improve comfort and air quality in your commercial or industrial setting. We're offering a $80/ton incentive for energy efficient replacements and $250/ton incentive toward the purchase of qualified VRF and Dual Fuel Heat Pumps

Apply now

HVAC Incentive

HVAC systems make up a major part of a business or industry’s energy use. Extreme temperatures and high humidity push aging HVAC systems to their limits. Proper selection, installation, operation and maintenance of HVAC systems saves you more energy, controls seasonal spikes, and improves comfort and air quality in your commercial or industrial setting.

  • Application must be sent within 60 days of the HVAC unit(s) installation date based on required invoices and spec sheets uploaded to online application.

  • 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 installed, equipment invoices must be submitted within 30 days.

  • Installation types: Replacement, New Construction, and New Equipment in Existing Facility.

  • Electric resistance heat not eligible for New Construction or New Equipment in Existing Facilities.

  • 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.)

  • 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).

Funding is still available this year

Ready to make your workplace safer and improve the comfort and air quality in your commercial or industrial setting? All of our incentives are subject to approval by TVA and your LPC and are contingent upon available funding. And we have great news: Funding is still available this year.

Benefits of dual-fuel heat pumps:

Thanks to the Tennessee Valley’s warm summers and relatively mild winters, dual fuel heat pumps are a more efficient HVAC option for our region than systems that heat exclusively on natural gas or propane. Even in temperatures as low as 25 degrees! Savings from dual fuel heat pumps increase as outdoor temperatures rise into the 30s and higher. Some of the biggest benefits of dual fuel heat pumps include:


  • Cost-savings: For a typical 5-ton unit, a dual fuel heat pump is approximately 20% less costly to operate in our region than HVAC systems that rely exclusively on natural gas or propane.
  • Energy efficiency: They’re 400% more efficient than HVAC systems that heat solely with natural gas or propane.
  • Peace of mind: Depending on weather conditions, dual fuel heat pump systems automatically operate on the least costly fuel source. Plus, if natural gas prices increase, so do your savings from dual fuel heat pumps.
  • Lower emissions: The increased efficiencies translate into 50% fewer emissions.

What's eligible?

Energy Efficiency

  • Replacements: $80/ton (high efficiency, above minimum requirements)
    • Can only replace like-for-like equipment. Example, an older inefficient heat pump with a new, high-efficiency heat pump.
    • Heat pumps cannot have strip heat.

Equipment Types

    • VRF
    • Dual Fuel Heat Pump
    • PTHP Dual Fuel
    • Heat Pump
    • Unitary A/C
    • PTAC
    • PTHP

Electrification VRF and Heat Pumps

  • New/Fuel Switch: $250/ton
  • Equipment Types
    • VRF
    • Dual Fuel Heat Pump
    • Low Temp Heat Pump with no electric resistance heat
  • PTHP Dual Fuel

If the equipment you wish to install is not displayed in the tables below, it does not qualify for an incentive. Contact the operations center at 866-233-0450 for more information.

Apply through the Preferred Partners Network (PPN)

In order to apply for this incentive, you must work with a PPN member. All you need to do is Request Expert Solutions or Find a Contractor.

Request solutions icon

Request Expert Solutions

Submit a project request and multiple contractors in our Preferred Partners Network will respond with solutions based on your needs.

Request Expert Solutions
Contractor icon

Find a Contractor

Ready to get started? Find a trusted expert in your area. All members of the Preferred Partners Network (PPN) are TVA-vetted.

Find a Contractor

Business & Industry resources.

We’re here for you. Together we can do great things.