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. Incentives are not to exceed 65% of the invoiced project cost to the end user.

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

New Construction:

Single-zone – $500 per unit

Early Retirement:

Single-zone – $700 per unit

Retrofit:

Single-zone – $1,000 per unit

Small Business Single-Zone Mini-Split Heat Pump Retrofits

Single-zone – $1,400 per unit
Click here for more information on eligibility.

Multifamily Mini-Split Heat Pumps

New Construction:

Single-Zone: $600 per unit
2 Zone: $700 per unit
3 Zone: $800 per unit

Early Retirement:

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

Retrofit:

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

New Construction Multifamily Heat Pumps

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

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

Single-Packaged Heat Pumps (Splitless)

New Construction:

≥ 7,000 and ≤ 9,500 Btu/h: $2,200 per unit

Early Retirement:

≥ 7,000 and ≤ 9,500 Btu/h: $2,700 per unit

Retrofit:

≥ 7,000 and ≤ 9,500 Btu/h: $3,500 per unit

Packaged Terminal Heat Pumps

New Construction:

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

Early Retirement:

< 5,800 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

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: $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: $850 per unit
> 11,800 Btu/h: $1,000 per unit

Ventilation Incentives

Heat Pump Rooftop Units (RTUs)

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)

New Construction:

Sensible heat recovery ≥ 75% – $10/Cubic Feet per Minute (CFM)
DOAS with ERV and integrated heat pump or remote VRF with coil and LEV

Energy Recovery Ventilator (ERV) Systems

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

Click here for information on incentives for these systems.

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.