Special Programs to Upgrade Your Air Conditioner

Check out these grants below that can help you upgrade your air conditioner for little to no cost.

The United States offers a variety of grant programs and financial assistance options for individuals and families looking to install or upgrade their air conditioning systems. These programs are designed to help reduce energy costs, improve home energy efficiency, and provide relief to low-income households. Here’s a comprehensive look into some of these initiatives:

Home Energy Rebate Program

Managed by the Office of State and Community Energy Programs (SCEP), this program provides states and territories with funds for Home Efficiency Rebates and Home Electrification and Appliance Rebates​​.

HVAC Rebates: Homeowners who switch from electric to natural gas for their furnaces, air conditioning units, and water heaters may be eligible for HVAC rebates. These rebates are part of new programs that may also be combined with existing tax credits and utility offers, valid through 2032​​.

Weatherization Assistance Program (WAP)

Aimed at low-income individuals, Weatherization Assistance Programs offers whole-home evaluations and subsequent improvements to enhance energy efficiency, which can include upgrading air conditioning systems to more efficient models​​.

LIHEAP State & Territory Cooling Programs

The Low Income Home Energy Assistance Program (LIHEAP) offers financial aid ranging from a minimum of $1 to a maximum of $1,500, covering the purchase of air conditioners and other cooling systems based on the household’s needs and income levels​​​​​​.

Inflation Reduction Act of 2022

Under this act, state programs provide rebates of up to $4,000 for energy efficiency retrofits, including air conditioning systems, with increased benefits for low- and moderate-income homes​​.

Free HVAC System Replacement Grants

Certain grant programs reduce the cost of purchasing heat pumps that function as air conditioners in the summer. Rebates of up to $8,000 and additional tax credits are available, particularly benefiting senior citizens​​.

Free Air Conditioner Program

This government program offers cash awards ranging from $50 to $300, and potentially up to $500 for Energy Star accredited HVAC equipment and air conditioners if there is a genuine need​​.


The Central Air Conditioners Tax Credit from ENERGY STAR is applicable to products purchased and installed between January 1, 2023, and December 31, 2032, promoting the adoption of energy-efficient air conditioning units​​.

Energy Efficient Home Improvement Credit

Offered by the Internal Revenue Service (IRS), this credit allows for a claim of up to $1,200 annually for energy property costs, which includes the installation of qualified heat pumps and other energy-efficient improvements with no lifetime dollar limit​​.

These programs collectively demonstrate the U.S. government’s commitment to helping citizens upgrade to more energy-efficient air conditioning systems, reducing both energy costs and environmental impact. Individuals seeking assistance should contact their state energy offices or local LIHEAP providers to explore their eligibility for these benefits.

Upgrading to a new air conditioner comes with a host of benefits that can impact not only the comfort of your home but also your finances and the environment. Here’s a detailed look at the advantages:

  1. Increased Energy Efficiency: New air conditioners are designed to be significantly more energy-efficient than older models. They use less power to produce the same amount of cooling, which means lower energy bills for households.
  2. Cost Savings: With increased efficiency, the cost to cool your home decreases. Although the upfront cost of a new AC unit might be higher, the savings on utility bills over time can offset this initial investment.
  3. Enhanced Comfort: Modern air conditioners offer improved and more consistent cooling capabilities. They can maintain a more constant temperature and humidity level, which enhances the overall comfort within your home.
  4. Reduced Carbon Footprint: By consuming less energy, newer AC units help reduce your home’s carbon footprint. Energy-efficient air conditioners contribute to fewer greenhouse gas emissions because they require less electricity, and if your electricity comes from renewable sources, the impact is even greater.
  5. Better Air Quality: Newer models often come with better filtration systems that can remove pollutants, allergens, and dust from the air, improving the indoor air quality. This can be particularly beneficial for people with allergies or respiratory issues.
  6. Smart Technology Integration: Many new air conditioners include smart technology that allows for remote control, scheduling, and monitoring of your cooling system. This can lead to more efficient use and further cost savings.
  7. Quieter Operation: Advances in technology have allowed for the design of air conditioners that operate at a lower noise level, contributing to a quieter and more peaceful home environment.
  8. Rebates and Tax Incentives: Upgrading to a more energy-efficient air conditioner can qualify you for rebates and tax incentives, reducing the overall cost of the new system.
  9. Increased Property Value: Homes with newer, more efficient air conditioning systems may have a higher market value and can be more attractive to potential buyers.

In Conclusion

There is no need to spend a lot of money upgrading your air conditioning system. It is recommended you research the grant programs currently available as you may be able to upgrade your air conditioner at little to no cost.