City Announces Second Round of Heat Pump Incentives

City Announces Second Round of Heat Pump Incentives

Published on October 03, 2024

Mayor Leirion Gaylor Baird today announced the launch of the second phase of the City's Heat Pump Incentive, following the success of the pilot initiative launched in January that helped 329 Lincoln homeowners save on energy costs and reduce greenhouse gas emissions. The City of Lincoln and Lincoln Electric System (LES) collaborated to develop the incentive program to make energy-efficient heating and cooling systems more affordable and accessible for residents.

"This next round of heat pump incentives offers even more opportunities for Lincoln families to save money, breathe cleaner air, and create healthier homes. This is a win for our residents, our community, and our future," said Mayor Gaylor Baird.

Funded with $625,000 from the City's biennial budget, the second round of incentives includes several enhancements to maximize savings. The enhancements include higher incentives for residents replacing air conditioners rather than existing heat pumps, and now includes mini-split heat pumps, which are ductless and work well in older homes.

Homeowners in Lincoln can receive incentives up to $3,800 for heat pump installation. The updated incentive structure includes $500 to replace a heat pump at least five years old or $1,500 to replace an air conditioner. Low- to moderate-income residents may receive up to $3,000 per household, and all incentives can be combined with an LES $800 incentive.

Joining Mayor Gaylor Baird at the news conference were Jessica Kneifl, LES Energy Services Specialist; Kim Morrow, City of Lincoln Chief Sustainability Officer; Jesse Hengelfelt, Sales Director, John Henry's Plumbing, Heating, Air, and Electrical; Lincoln resident Dan Alberts, and City Councilman Bennie Shobe.

Shobe said that because the first phase of the program was so beneficial to the community, he successfully encouraged the City Council to add $125,000 to the City budget (for total program funding of $625,000) to support the incentives. In the program's first year, Shobe said, City-incentivized heat pumps reduced the community's greenhouse gas emissions by over 250 metric tons, which is equivalent to over 580,000 miles driven by an average gasoline-powered passenger vehicle.

"Numbers like this demonstrate how energy-efficient heat pumps help clean our air and support our community's health. As we roll out the program's second phase, I look forward to making Lincoln even more affordable, equitable, and climate-smart by making heat pumps more accessible to all," Shobe said.

Morrow said the initiative is an important part of the City's plan to reduce greenhouse gas emissions by 80% by 2050.

"This initiative is not only a critical part of our sustainability efforts, but also a simple way for residents to save energy, reduce costs, and keep their homes more comfortable year-round," Morrow said. "By upgrading your system, you're not only reducing your energy costs but also making a positive impact on Lincoln's future. Every heat pump installed moves us one step closer to a cleaner, healthier environment for ourselves and future generations."

Hengelfelt said heat pumps are particularly well-suited for Lincoln's climate because they offer year-round comfort, use significantly less energy than traditional systems, and perform effectively in hot summers and cold winters.

"For our business, the program allows us to provide high-efficiency heating and cooling solutions to our neighbors. More importantly, it helps the community by promoting energy-efficient options that reduce utility bills and make Lincoln a greener, more sustainable city," Hengelfelt said.

Kneifl said that following the launch of the City's heat pump incentive program, LES saw a 225% increase in participation compared to the last five years. Part of the program success is due to its easy access, she said.

"What makes this program truly easy is that residents don't have to navigate the process alone. Once you select a participating HVAC contractor, they will handle the paperwork and apply for the incentives on your behalf. The financial credits are directly applied to your invoice, making participation as seamless as possible," Kneifl said.

For more information on heat pump incentives and the LES Sustainable Energy Program, visit lincoln.ne.gov/HeatPump, LES.com/SEP or email [email protected].

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