Heat Pump User Tips

Thu, 22 Feb 2024 11:31:51 GMT

Heat Pump User Tips

Over 100,000 Mainers have switched to high-efficiency heat pumps for heating and cooling their homes and businesses. If you’ve invested in a heat pump or plan to, here are some tips on saving the most on your heating and cooling bills.

Drop to the bottom of this page to download a printable copy of our Heat Pump User Tips brochure.

Use Your Heat Pump All Winter

High-efficiency heat pumps are the most effective way to heat your home, even on those extremely cold winter days. If you have a heat pump and a boiler or natural gas furnace, your heat pump can keep you comfortably warm and is the most efficient choice.

Set it and leave it alone

Heat pumps operate with optimal efficiency when maintaining a consistent temperature. Lowering heat pump settings during periods of absence or sleep may increase energy consumption, as it requires more energy to return to the desired temperature than to sustain it. Unlike with boilers and furnaces, making temperature adjustments, like overnight changes, does not lead to energy savings with heat pumps.

Set the temperature for comfort

Many heat pump indoor units are mounted up high. Because heat rises and the indoor units measure the temperature, you may need to set your heat pump at a higher temperature than traditional wall thermostat settings for comfort. You may not need to increase the temperature to experience the same comfort on heat pumps with floor units or wall-mounted thermostats.

Avoid the "Auto" mode

In "Auto" mode, heat pumps maintain a consistent temperature by alternating between "Cool" and "Heat" modes. To prevent your air conditioning from kicking in during a mid-winter sunny day or when a wood stove or fireplace is in use, use the "Heat" mode instead of "Auto" mode in the winter. Similarly, to avoid accidental heating, use the "Cool," "Dry," or "Fan" mode instead of "Auto" in the summer.

Optimize fan speed

Start with the fan setting on "Auto Fan." If that doesn’t distribute the heated or cooled air throughout the space, adjust the fan speed to the lowest level that meets your needs.

Optimize the direction of airflow

Redirecting airflow on a heat pump is simple. To maximize coverage, direct the air towards the furthest open space from the indoor unit and away from obstructions. You may need to test a few settings before finding the direction of airflow that’s comfortable for you.

Clean your dust filters regularly

Heat pumps operate at their best with clean dust filters. Vacuum or rinse the filters when they look dirty or when the indicator light signals to clean them. How often you clean the dust filters depends on usage and dust accumulation. Typically, they require cleaning every few weeks to months. Consult your user manual for filter removal instructions.

Keep your outdoor units clear

Keep shrubs and other plants or objects away from outdoor units and gently remove leaves to prevent obstruction. Be careful not to bend the fins. Clear snow drifts away from outdoor units, but don’t worry about snow and ice accumulation, as heat pumps have automatic defrosting mechanisms.

Schedule professional cleaning for your heat pump

Follow your heat pump manufacturers' recommendations for professional cleaning and regular dust filter maintenance to keep your heat pump operating at peak performance.

Match the summer mode to your preferences

For summer, heat pumps offer three modes. "Fan" consumes minimal energy and offers some relief but does not cool the room, so remember to turn it off when you leave the space. "Dry" mode reduces humidity, bringing comfort during warm and muggy conditions. "Cool" mode lowers temperatures and is suitable for the hottest days.

Enjoy your energy savings!

As you can see, heat pumps operate differently than combustible heating systems. Operating your heat pump using these expert tips ensures maximum savings and comfort.

Download our Heat Pump User Tips

Ultimate Guide To Heat Pump Rebates And Tax Credits In Maine: What You Need To Know

Tue, 10 Oct 2023 17:09:00 GMT

In 2019, the State of Maine set a target of installing 100,000 electric heat pumps by 2025 to end their dependency on fossil fuel heat. In July 2023, Maine surpassed that goal , and Governor Mills set a new target of having another 175,000 homes and businesses heated with electric heat pumps by 2027.

Maine has embraced the federal climate initiatives focused on dramatically reducing our reliance on fossil fuels, improving energy efficiency, and reducing greenhouse gas while saving residents money on heating and cooling. Johnson & Hayes Heat Pumps is proud to lead the charge, installing high-efficiency electric heat pump systems for homeowners and businesses in Portland and the surrounding area.

Since the initiative began in 2019, the incentives and rebates provided by Efficiency Maine and Maine Housing have changed annually. We put together this guide to help you navigate the most recent rebates and incentives available to homeowners and businesses when transitioning from oil heat to an energy-efficient, clean electric heat pump system.

2023 Changes To Maine’s Heat Pump Rebates And Tax Credits: What You Need To Know

Before we dive into the recent changes to the heat pump rebates and tax credits available to Maine homeowners and businesses, let’s break down what heat pumps are and how they work.

What Heat Pumps Are And How They Work

Heat pumps, efficient for heating and cooling, consist of exterior and interior units, offering customizable comfort. They come in hybrid (oil and electricity) or fully electric options, connecting to the grid or solar panels. Around since the 1970s, electric heat pump HVAC systems have surged in popularity as they align with the demand for green, sustainable heating and cooling solutions.

Programs like Efficiency Maine provide incentives that make meeting the targets set by the state for heat pump installations and a shift to sustainable energy solutions easier.

HOW THEY WORK

Heat pumps harness external air for heating, using a compressed refrigerant to amplify its temperature before circulating warm air through a space. This eco-friendly method eliminates emissions, providing a green alternative to burning fossil fuels. For cooling, the process is reversed, circulating chilled air.

With a ductless heat pump system , a large outdoor unit does most of the work. Similar to baseboard electric heaters, each space has an individual unit for heating or cooling, allowing personalized control and energy conservation. You can turn units off in unoccupied spaces and adjust the temperature in each space. Ductless heat pumps offer superior heating and cooling, energy efficiency, and utility savings to ducted heat pumps. However, installation is not always feasible.

Retrofitting your home or business with a ductless system costs significantly more than a ducted system if you have an existing HVAC system. Installing a ductless heat pump system requires access to the internal structure, so installation usually occurs during construction.

In contrast, ducted heat pump systems connect to your existing duct system. An installer replaces your existing furnace with an electric heat pump, which operates like your previous heating and cooling system. With a ducted system, you do not have control over each space like a ductless system, and there will be heat and cooling loss through the vents. As a result, it cannot offer the same energy efficiency and savings on your utilities as a ductless system. However, it is the most cost-effective way to convert to green energy if you have a traditional oil-burning system.

Initially, there were doubts about whether electric heat pumps would warm homes and businesses as oil heating systems in Maine’s cool winter temperatures and rural areas. However, those doubts were dispelled as over 100,000 households experienced improved comfort in urban and rural regions.

Efficiency Maine Rebates As Of 2023

The most recent rebates and incentives for Heat Pumps installed after September 18, 2023

At the state level, you can get back up to $8,000 for low-income residents, up to $6,000 for moderate-income customers, and up to $4,000 for all residents.

There are also $2,000 federal tax credits for partial- and whole-home heat pump systems.

The average homeowner spends $5,500 to install a heat pump, which can save about $1,000 annually over fossil fuel-burning heaters.

Efficiency Maine Residential Rebates

Rebates Available Regardless Of Income

You can receive up to 40% of the project cost up to a maximum lifetime rebate limit of $4,000 when transitioning to an electric, zero-emission heat pump.

To be eligible:

You must be the owner of the home, which is located in Maine.
The heat pump must heat the space throughout the entire heating season .
Only single-zone heat pumps with one indoor unit each (including ducted indoor units) qualify.
You must have a 25C Federal tax credit-eligible heat pump installed.
Heat pumps must cover at least 80% of the total required capacity of the dwelling at the designated temperature.
The heat pump(s) must be sized to meet 100% of the home’s peak heating load.
You must remove your old primary fossil-fueled heating system , connect it only to a generator, disable (lock power in the off position) it, and disconnect it from thermostats or disconnect it from the panel - basically, put out of commission.
A state-recognized , licensed HVAC contractor must install the heat pump.

Rebates For Moderate Income Homeowners

You can receive a rebate for up to 60% of the project cost to a maximum lifetime limit of $6000.

To qualify for a moderate income rebate:

You must have an Adjusted Gross Income (AGI) of up to $70,000 for individual tax filers or $100,000 for joint filers.

AND

Be the owner of the home, which is located in Maine.
The heat pump must heat the space throughout the entire heating season .
Only single-zone heat pumps with one indoor unit each (including ducted indoor units) qualify.
A 25C Federal tax credit-eligible heat pump must be installed.
Heat pumps must cover at least 80% of the total required capacity of the dwelling at the designated temperature.
The heat pump(s) combined with supplemental heat must be sized to meet at least 100% of the home’s peak heating load.
Your old primary fossil-fueled heating system must be removed, connected only to a generator, disabled (lock power in the off position), thermostats disconnected, or disconnected from the panel - basically, put out of commission.
The heat pump must be installed by a state-recognized, licensed HVAC contractor.

To see if you qualify, complete the Efficiency Maine eligibility form here.

Rebates For Moderate Income Homeowners

You can receive up to 40% of the project cost up to a maximum lifetime rebate limit of $4,000 when transitioning to an electric, zero-emission heat pump.

To be eligible:

You must be the owner of the home, which is located in Maine.
The heat pump must heat the space throughout the entire heating season .
Only single-zone heat pumps with one indoor unit each (including ducted indoor units) qualify.
You must have a 25C Federal tax credit-eligible heat pump installed.
Heat pumps must cover at least 80% of the total required capacity of the dwelling at the designated temperature.
The heat pump(s) must be sized to meet 100% of the home’s peak heating load.
You must remove your old primary fossil-fueled heating system , connect it only to a generator, disable (lock power in the off position) it, and disconnect it from thermostats or disconnect it from the panel - basically, put out of commission.

A state-recognized , licensed HVAC contractor must install the heat pump.

Rebates For Moderate Income Homeowners

You can receive a rebate for up to 60% of the project cost to a maximum lifetime limit of $6000.

To qualify for a moderate income rebate:

You must have an Adjusted Gross Income (AGI) of up to $70,000 for individual tax filers or $100,000 for joint filers.

AND

Be the owner of the home, which is located in Maine.
The heat pump must heat the space throughout the entire heating season .
Only single-zone heat pumps with one indoor unit each (including ducted indoor units) qualify.
A 25C Federal tax credit-eligible heat pump must be installed.
Heat pumps must cover at least 80% of the total required capacity of the dwelling at the designated temperature.
The heat pump(s) combined with supplemental heat must be sized to meet at least 100% of the home’s peak heating load.
Your old primary fossil-fueled heating system must be removed, connected only to a generator, disabled (lock power in the off position), thermostats disconnected, or disconnected from the panel - basically, put out of commission.
The heat pump must be installed by a state-recognized, licensed HVAC contractor.

To see if you qualify, complete the Efficiency Maine eligibility form here.

Commercial And Industrial Rebates Available

Maine's Housing Authority provides low-income homeowners subsidies and rebates to make converting from oil-burning heating and cooling to electric heat pump systems affordable.

You can receive a rebate for up to a maximum lifetime limit of $8000 .

To be eligible

You must receive LIHEAP, MaineCare, SNAP, and/or TANF ,

AND

Be the owner of the home, which is located in Maine.
The heat pump must heat the space throughout the entire heating season .
Only single-zone heat pumps with one indoor unit each (including ducted indoor units) qualify.
A 25C Federal tax credit-eligible heat pump must be installed.
Heat pumps must cover at least 80% of the total required capacity of the dwelling at the designated temperature.
Combined with supplemental heat, the heat pump(s) must be sized to meet at least 100% of the home’s peak heating load.
Your old primary fossil-fueled heating system must be removed or connected only to a generator, disabled (lock power in the off position), thermostats disconnected, or disconnected from the panel - basically, put out of commission.

An Efficiency Maine Qualified Partner HVAC contractor must install the heat pump.

Commercial And Industrial Rebates Available

Efficiency Maine offers rebates to help businesses, industry, and commercial property owners install or retrofit their existing HVAC system with a zero-emission, high-efficiency heat pump system. They have rebates for every situation and every system.

Eligible businesses and organizations include:

Businesses, for-profit or nonprofit
Municipalities
Schools and higher education facilities

Manufacturing and other industrial facilities
Other non-residential facilities
Multifamily buildings with three or more units

Mini-Split Heat Pumps

New Construction:

1 Zone – $500
2 Zone – $750
3 Zone – $1,000
Air source heat pumps

Retrofit:

1 Zone – $1,200
2 Zone – $1,600
3 Zone – $2,000
Air source heat pumps

Small Business Mini-Split Heat Pump Retrofits

1 Zone – $1,600
2 Zone – $2,000
3 Zone – $2,400
Air source heat pumps

Click here for more eligibility information.

Multifamily Mini-Split Heat Pumps

New Construction:

1 to 3 Zones: $3.25/sq. ft.

Retrofit:

1 to 3 Zones: $7.00/sq. ft.

Variable Refrigerant Flow (VRF) Systems

New Construction:

$4.00/sq. ft. with heat recovery
$5.00/sq. ft. without heat recovery
$7.00/sq. ft. single-phase without heat recovery

Retrofit:

$10.00/sq. ft. with heat recovery
$13.00/sq. ft. without heat recovery
$15.00/sq. ft. single-phase without heat recovery

Heat Pump Rooftop Units (RTUs)

New Construction:

60 to ≤120 MBH: $30 per MBH
121 to ≤450 MBH: $27.27 per MBH

Retrofit:

60 to ≤120 MBH: $130 per MBH
121 to ≤450 MBH: $118.18 per MBH

Packaged Terminal Heat Pumps

New Construction:

< 7,000 Btu/h: $380 per unit

Retrofit:

< 7,000 Btu/h: $430 per unit
≥ 7,000 Btu/h and ≤15,000: $450 per unit
> 15,000 Btu/h: $480 per unit

Vertical Packaged Terminal Heat Pumps

New Construction:

< 7,000 Btu/h: $380 per unit
≥ 7,000 Btu/h and ≤15,000: $550 per unit
> 15,000 Btu/h: $800 per unit

Retrofit:

< 7,000 Btu/h: $700 per unit
≥ 7,000 Btu/h and ≤15,000: $850 per unit
> 15,000 Btu/h: $1,000 per unit

Water Source Heat Pumps

$100 per ton for ducted units with a capacity < 135,000 Btu/h

To learn more about eligibility and start the application process, visit https://www.efficiencymaine.com/commercial-hvac-incentives/ . They also offer virtual consultations.

Johnson & Hayes Heat Pumps provides free consultations to help you determine the best system for your business needs, can help you navigate the incentives available to you, and assist you with the application process. Contact us today to get started.

Federal Tax Credits For Heat Pump Installations In Maine

Homeowners and residents can receive a federal tax credit of up to $2000 per year if a heat pump with a 75% or greater thermal efficiency rating is installed. Qualifying home improvements include new:

Electric or hybrid heat pump systems for heating and cooling
Electric or hybrid heat pump water heaters

The maximum credit you can claim each year is:

$1,200 for energy property costs and certain energy-efficient home improvements, with limits on doors ($250 per door and $500 total), windows ($600), and home energy audits ($150)
$2,000 per year for qualified heat pumps, biomass stoves, or biomass boilers

The credit has no lifetime dollar limit . You can claim the maximum annual credit every year that you make eligible improvements until 2033.

The credit is nonrefundable , so you can only get back what you owe in taxes. You can't apply any excess credit to future tax years.

Who Is Eligible For The Energy Efficient Home Improvement Tax Credit?

You can claim the energy-efficient home improvement credit for improvements to your main home. Your main home is where you live most of the time.

For the energy efficiency home improvement credit, the home must be :

Located in the United States
An existing home that you improve or add onto, not a new home
In most cases, the home must be your primary residence (where you live most of the year). You can't claim the credit if you're a landlord or other property owner who doesn't live in the home.

Business use of home

You can't claim the credit if you use a property solely for business purposes.

If you use your home partly for business , the credit for eligible clean energy expenses is as follows:

Business use up to 20% : full credit.

Business use more than 20% : credit based on share of expenses allocable to nonbusiness use.

Can I get the full tax credit and installation rebates from Efficiency Maine?

The short answer is yes. Generally, the Efficiency Maine heat pump installation rebates are received after you purchase your heat pump so you can claim the full purchase price to qualify for the maximum annual tax credit.

According to the IRS, “ state energy efficiency incentives are generally not subtracted from qualified costs unless they qualify as a rebate or purchase-price adjustment under federal income tax law. Many states label energy efficiency incentives as rebates even though they don't qualify under that definition.” See Notice 2013-70, IRB 2013-47 for more information.

New Regulations For Rebate Qualification and Safety Concerns

As of the fall of 2023, there has been a significant change to the qualification requirements for receiving the maximum rebate from Efficiency Maine. You must disable your oil boilers or only connect them to a generator and install a whole versus partial system.

Before now, many people opted to either heat only partially using an electric heat pump or keep their oil heating systems as backups. However, they have since discovered they can heat their homes with electric heat pumps even on the coldest days.

Disabling or connecting boilers to a generator has raised some concerns. The Energy Commission believes that disabling boilers without being serviced poses a serious safety risk when started up again. They also have concerns about code compliance and improper disconnections. While no concrete evidence confirms or disputes the Commission’s concerns, Governor Mills and Efficiency Maine continue to seek the advice and counsel of local energy companies to determine whether disconnecting and disabling existing boilers poses a safety risk.

How Heat Pump Rebates And Tax Credits Can Help You

Heat pump rebates make switching to high-efficiency, zero-emission heating and cooling more affordable to homeowners and businesses in Maine. Our flexible financing lets you receive your rebate and pay off your heat pump installation quickly.

Heating your home or business with electric heat pumps saves you money on utilities each year (up to $1000) while reducing your taxes by up to $2000 annually until 2030, at least.

Importance Of Choosing the Right Heat Pump Installer

To qualify for the tax credit and rebates, you must have your heat pump system installed by an Efficiency Maine Qualified Partner . The state recognizes these contractors and suppliers for their knowledge and proven expertise. They are carefully vetted through a rigid application process, so you can rest assured that you are getting the highest quality products and installation services that meet all code and safety regulations.

Johnson & Hayes Heat Pumps is a Qualified Partner with years of experience with heat pump installations for residential, commercial, and industrial applications. We guarantee our installations for 1 year and set the standard for premium quality service and outstanding products.

Our HVAC installation contractors happily answer any questions, can help you navigate the rebate and tax credit programs available, and walk you through the application process.

Conclusion

Switching from an oil boiler or natural gas furnace to a green energy, high-efficiency heat pump heating and cooling system has never been easier for homeowners and businesses in Portland, Maine. The rebates of up to $8000 , depending on the cost and your income available to homeowners, can help you pay off your home improvement investment quickly.

Not only do you benefit from annual savings on your utility bills, but you can deduct up to $2000 per year from your income taxes.

Going green in Maine is good for the planet and your pocketbook. Johnson & Hayes Heat Pumps proudly leads the way, offering energy-efficient, zero-emission heat pump installation and maintenance services to help you live comfortably using sustainable energy sources to heat and cool your home or business.

Ready to make the switch to green energy heating?

Book a free heat pump consultation today!

References and Additional Resources

Efficiency Maine

The Energy Efficient Home Improvement Tax Credit

Maine Housing Energy Assistance Program

About Electric Heat Pumps

https://spectrumlocalnews.com/me/maine/politics/2023/11/15/new-rules-force-mainers-to-disable-furnaces-for-heat-pump-rebates

johnson-hayes-heating-cooling

Heat Pump User Tips