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.

Click here for more information on these HVAC solutions.  

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, or 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 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
    2-zone: $700 per outdoor unit
    3-zone: $800 per outdoor unit

    Early Retirement

    Single-zone: $850 per outdoor unit
    2-zone: $950 per outdoor unit
    3-zone: $1,050 per outdoor unit

    Retrofit

    Single-zone: $1,200 per outdoor unit
    2-zone: $1,300 per outdoor unit
    3-zone: $1,400 per outdoor unit

    Multifamily Heat Pump Systems in New Construction of Affordable Housing

    Variable Refrigerant Flow (VRF) Systems

    Project Type Incentive
    New Construction

    $3.00/sq. ft. single-phase without heat recovery
    $4.00/sq. ft. without heat recovery
    $6.00/sq. ft. with heat recovery

    Early Retirement

    $4.50/sq. ft. single-phase without heat recovery
    $6.00/sq. ft. without heat recovery
    $8.50/sq. ft. with heat recovery

    Retrofit

    $8.00/sq. ft. single-phase without heat recovery
    $10.00/sq. ft. without heat recovery
    $12.00/sq. ft. with heat recovery

    Small Business Variable Refrigerant Flow (VRF) Systems

    Project Type Incentive
    Early Retirement

    $6.00/sq. ft. single-phase without heat recovery
    $7.50/sq. ft. without heat recovery
    $10.00/sq. ft. with heat recovery

    Retrofit

    $9.50/sq. ft. single-phase without heat recovery
    $11.50/sq. ft. without heat recovery
    $13.50/sq. ft. with 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 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
    ≥ 5,800 Btu/h and ≤11,800: $450 per unit
    > 11,800 Btu/h: $480 per unit

     

    Vertical Packaged Terminal Heat Pumps

    Project Type Incentive
    New Construction

    < 5,800 Btu/h: $380 per unit
    ≥ 5,800 Btu/h and ≤11,800: $550 per unit
    > 11,800 Btu/h: $800 per unit

    Early Retirement

    < 5,800 Btu/h: $520 per unit
    ≥ 5,800 Btu/h and ≤11,800 Btu/h: $700 per unit
    > 11,800 Btu/h: $900 per unit

    Retrofit

    < 5,800 Btu/h: $700 per unit
    ≥ 5,800 Btu/h and ≤11,800 Btu/h: $850 per unit
    > 11,800 Btu/h: $1,000 per unit

    Linear Expansion Value (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
        121 to ≤450 MBH: $28 per MBH

        Early Retirement

        60 to ≤120 MBH: $90 per MBH
        121 to ≤450 MBH: $70 per MBH

        Retrofit

        60 to ≤120 MBH: $168 per MBH
        121 to ≤450 MBH: $125 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

          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.