A Comprehensive Guide to Florida Heat Pump Incentives in 2023

A Comprehensive Guide to Florida Heat Pump Incentives in 2023

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florida-heat-pump-rebate

Florida heat pump incentives: 2023 guide

Heat pumps are a great fit for Florida’s hot climate. One-third of all homes in the state already rely on these electric, energy-efficient, all-in-one HVAC systems, and it’s easy to find models that can meet all your heating, cooling, and dehumidification needs. As of 2023, most Florida residents will qualify for at least a couple thousand dollars in incentives to install a heat pump.


Key takeaways

  • Thanks to the Inflation Reduction Act, lots of heat pumps and mini splits are eligible for a federal tax credit of $2,000 or 30% of the cost of installation (whichever is less).
  • Income-dependent rebates of up to $8,000 were earmarked in the Inflation Reduction Act, though they aren’t available in Florida yet. The state Office of Energy told us that they’re waiting for guidance from the federal Department of Energy before they determine a timeline for their heat pump rebate program.
  • Many utility companies in Florida offer incentives for installing efficient heat pumps, typically around a few hundred dollars per household. You can look for rebate programs by zip code at the Database of State Incentives for Renewables & Efficiency.

What heat pump incentives are available in Florida?

As of June 2023, here are the programs that Florida residents might be able to tap for savings on a new heat pump system.

Federal incentives from the Inflation Reduction Act

We’ve covered all the ways you can get free money for clean heating and cooling upgrades through the Inflation Reduction Act of 2022 (IRA) here. The quick version:

  • Any household can claim a $2,000 federal tax credit (or 30% of the price, whichever is less) against the cost to install an air-source heat pump that meets modest efficiency requirements. Since it’s a tax credit, rather than a direct rebate, you’re only eligible for as much free money as you’re on the hook to pay the IRS per year.
  • Larger, income-dependent rebates of up to $8,000 are not currently available. The IRA was written such that each state will have to implement its own version of this rebate program. That means the rebates will roll out at different times in different states, and possibly with different guidelines and requirements. Florida’s state Office of Energy told us in an email that it “does not have any program specifics, as the US Department of Energy has not yet issued an application and guidance for the program.” (Other states have said that they expect rebates to begin in late 2023 or 2024.) If you’re counting on those rebates, you should wait until the programs are actually in place, because they’re highly unlikely to apply retroactively to any system that you’ve already installed.

Utility rebates

According to the DSIRE database, about a dozen utility companies around Florida offer rebates to customers who install heat pumps. The savings can range from $25 up to $1,630, depending on the utility company, and sometimes the efficiency and size of the

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