Heat Pump Rebates

Heat Pumps

Air source heat pumps (ASHPs) can provide both air conditioning (cooling) and heating. When heat pumps are used for heating, heat is pulled from the air outdoors and moved inside the home through a compression cycle refrigeration system. The flow of refrigerant can change directions with the flip of a switch when air conditioning is needed, and the warm air in the home will be moved to the outdoors to provide cooling.

Believe it or not, your home probably already has a heat pump — your refrigerator! A fridge doesn’t “make” cold air; it simply moves heat from inside the fridge to the outside by using a refrigerant cycle just like a heat pump does for your whole home. Ever put your hand near the coils on the back or bottom of your fridge? You can feel the heat being released to the surrounding air.

ASHPs are more efficient than traditional heating and cooling systems, which means they waste less energy. Using an ASHP will decrease fossil fuel use and carbon emissions which supports the goals of the City of Holland’s Community Energy Plan.

Diagram explaining air source heat pumps heating cycle

Heat Pump Rebate Details

HBPW offers two different rebates for two different types of heat pumps. Cold climate air source heat pumps (ccASHP) are designed to work in cold climates for heating but can also be used for air conditioning in the summer. Heat pumps that are not cold climate rated are more efficient than traditional air conditioning, but are not always designed to work as well in cold climates for heating.  Heat pumps not designed to work in the coldest climates often rely on backup gas or electric resistance heat, which uses more energy and increases operating costs.

To qualify for the Holland BPW rebate for buying a heat pump, look for a Seasoning Energy Efficiency Ratio (SEER) rating of 14 or higher and a Heating Seasonal Performance (HSPF) of 8.8 or higher. The heat pump must replace electric resistance or a natural gas furnace with an Annual Fuel Utilization (AFUE) of 85 or lower.

Measure
Specifications
Rebate Amount
Cold Climate Air Source Heat Pump
Must replace electric resistance heat or natural gas.
$1,000 per ton
Air Source Heat Pump ≥8.8 HSPF and SEER ≥14
Must replace electric resistance heat or natural gas with AFUE ≤ 85.
$500 per ton

Before you buy a new heat pump, pre-approval is recommended to ensure you qualify for the rebate you are hoping to receive. Have your HVAC contractor reach out to us or feel free to call our team to discuss your project at 616-355-1534 or by sending us an email.

Diagram cross-section of a heat pump water heater with labeled components.

Heat Pump Water Heaters

Heat pump water heaters (HPWH) work the same way as an ASHP. They take heat from the surrounding air and transfer it to the refrigerant, which is then compressed to increase its temperature. The heated refrigerant goes through a coil to transfer heat to the water. The cooler refrigerant returns to the evaporator and the cycle begins again.

Since a HPWH uses heat from the surrounding air, they work best when placed in an area with good air circulation.

HPWHs save money over time because they do not “make” heat to warm up the water, they just transfer heat from the surrounding air into the water to warm it (with the help of a refrigerant). Using a HPWH decreases fossil fuel use and carbon emissions which supports the City of Holland’s Community Energy Plan.

Heat Pump Water Heater Rebate Details

To qualify for the HPWH rebate, provide proof of ENERGY STAR certification with your application. Under the Energy Waste Reduction program, a $200 rebate is available for an electric water heater replacement. Under the Beneficial Electrification program, a $300 rebate is available for a gas water heater replacement.