Commercial Heating, Ventilation, and Air Conditioning (HVAC) Incentives
Businesses can save money, increase equipment reliability, and create more comfortable and productive workplaces by making energy-efficient choices when installing, renovating, or replacing HVAC equipment. By upgrading to an efficient electric HVAC system, a business can move towards beneficial electrification, or the transition of electric systems in a way that reduces overall emissions and energy costs.
Incentives for these HVAC efficiency solutions are designed to encourage the installation of primary whole building heating and cooling systems. Installing electric heat pump equipment can help a business’s operating systems become fossil fuel free.
Buildings heated with natural gas are ineligible for HVAC incentives through the Commercial and Industrial Prescriptive Initiatives.
Types of HVAC Project Incentives
Project incentives come in three distinct categories that help determine what the associated incentive will be. Categories are defined by the relationship between the new, incentivized efficiency solution and, and the age of the existing system as applicable.
New Construction Incentives
New construction incentives are for the installation of equipment in a new building or addition with no existing heating system, as part of a change of use renovation, or for the replacement of a heating system that has failed or is nearing its useful life (22 years or older).
Early Retirement Incentives
Early retirement incentives are for the replacement of operating equipment that’s more than 16 years old, but less than 22 years old.
Retrofit Incentives
Retrofit incentives are for the replacement of existing (operating) equipment that’s less than 16 years old.
Heat Pump Incentives
Single-Zone Mini-Split Heat Pumps
| Project Type | Incentive |
| New Construction | $500 per outdoor unit |
| Early Retirement | $700 per outdoor unit |
| Retrofit | $1,000 per outdoor unit |
Small Business Single-Zone Mini-Split Heat Pump Retrofits
| Project Type | Incentive |
| Early Retirement | $900 per outdoor unit |
| Retrofit | $1,400 per outdoor unit |
- For businesses that have an electric account labeled “Small General Service” (SGS), “General Service” (GS), or “Medium General Service” (MGS) with an average monthly peak electrical demand under 100kW.
- Click here for more information on eligibility.
Multifamily Mini-Split Heat Pumps
(For multifamily buildings with three or more units.)
| Project Type | Incentive |
| New Construction |
Single-zone: $600 per outdoor unit |
| Early Retirement |
Single-zone: $850 per outdoor unit |
| Retrofit |
Single-zone: $1,200 per outdoor unit |
Multifamily Heat Pump Systems in New Construction of Affordable Housing
- 100% of project costs, up to $8,000 per dwelling unit.
- For qualifying affordable housing projects only. Click here for more information.
Variable Refrigerant Flow (VRF) Systems
| Project Type | Incentive |
| New Construction |
$3.00/sq. ft. single-phase without heat recovery |
| Early Retirement |
$4.50/sq. ft. single-phase without heat recovery |
| Retrofit |
$8.00/sq. ft. single-phase without heat recovery |
Small Business Variable Refrigerant Flow (VRF) Systems
| Project Type | Incentive |
| Early Retirement |
$6.00/sq. ft. single-phase without heat recovery |
| Retrofit |
$9.50/sq. ft. single-phase without heat recovery |
- For businesses that have an electric account labeled “Small General Service” (SGS), “General Service” (GS), or “Medium General Service” (MGS) with an average monthly peak electrical demand under 100kW.
- Click here for more information on eligibility.
Single-Packaged Heat Pumps (Splitless)
| Project Type | Incentive |
| New Construction |
≥ 7,000 Btu/h and ≤ 9,500 Btu/h: $2,200 per unit |
| Early Retirement |
≥ 7,000 Btu/h and ≤ 9,500 Btu/h: $2,700 per unit |
| Retrofit |
≥ 7,000 Btu/h and ≤ 9,500 Btu/h: $3,500 per unit |
Packaged Terminal Heat Pumps
| Project Type | Incentive |
| New Construction |
< 5,800 Btu/h and ≥ 11,800 Btu/h: $380 per unit |
| Early Retirement |
< 5,800 Btu/h and ≥ 11,800 Btu/h: $400 per unit |
| Retrofit |
< 5,800 Btu/h: $430 per unit |
Vertical Packaged Terminal Heat Pumps
| Project Type | Incentive |
| New Construction |
< 5,800 Btu/h: $380 per unit |
| Early Retirement |
< 5,800 Btu/h: $520 per unit |
| Retrofit |
< 5,800 Btu/h: $700 per unit |
Linear Expansion Valve (LEV) Kits
| Project Type | Incentive |
| New Construction and Retrofit |
$0.30/Btu For the installation direct expansion (DX) heating/cooling coil and an outdoor VRF condenser to a new or existing air handling unit to allow for VRF based heating and cooling. VRF must provide primary heating, be capable of operating at design heating conditions and maintain 70% of the rated capacity at design heating conditions. |
Ventilation Incentives
Heat Pump Rooftop Units (RTUs)
| Project Type | Incentive |
| New Construction |
60 to ≤120 MBH: $37 per MBH |
| Early Retirement |
60 to ≤120 MBH: $90 per MBH |
| Retrofit |
60 to ≤120 MBH: $168 per MBH |
Dedicated Outdoor Air Systems (DOAS)
| Project Type | Incentive |
| New Construction |
Sensible heat recovery ≥ 75% – $15/Cubic Feet per Minute (CFM) DOAS with ERV and integrated heat pump or remote VRF with coil and LEV |
| Retrofit |
Sensible heat recovery ≥ 75% – $19.50/Cubic Feet per Minute (CFM) DOAS with ERV and integrated heat pump or remote VRF with coil and LEV |
Energy Recovery Ventilator (ERV) Systems
| Project Type | Incentive |
| New Construction |
Sensible heat recovery ≥ 75% to < 85% – $1.50/CFM Sensible heat recovery ≥ 85% – $1.75/CFM |
| Retrofit |
Sensible heat recovery ≥ 65% to < 75% – $2.00/CFM Sensible heat recovery ≥ 75% to < 85% – $2.25/CFM Sensible heat recovery ≥ 85% – $2.50/CFM |
Other HVAC Incentives
ECM Circulator Pumps
- ECM Circulator Pump Instant Discount: $75
- Click here for more information.
Variable-Frequency Drive (VFD) Systems
- $400 – $2,300 per unit (incentive varies by system horsepower)
Biomass Boilers and Furnaces
Get Started
Ready to upgrade your facility with high-efficiency equipment and appliances? Work with an Efficiency Maine Qualified Partner in order to be eligible for these incentives.
Click here to find a Qualified Partner working near you. If you work with a contractor that is not yet a Qualified Partner, urge your contractor to find out more information here. As part of the project approval process, you will accept the C&I Prescriptive Program’s Terms and Conditions. If you’re interested in becoming a Qualified Partner, click here to see our Become A Qualified Partner page.
If you’re interested in getting started with an energy efficiency project in your business but don’t know where to start, you can sign-up for a virtual customer consultation here.