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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 systems 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. Incentive caps apply as follows: 75% of project cost (labor and equipment) for retrofit projects and 75% of equipment cost for new construction projects.

Click here for more information on these HVAC solutions

Heat Pump Incentives

Mini-Split Heat Pumps

New Construction:

  • 1 Zone – $500
  • 2 Zone – $750
  • 3 Zone – $1,000
  • Air source heat pumps

Retrofit:

  • 1 Zone – $1,200
  • 2 Zone – $1,600
  • 3 Zone – $2,000
  • Air source heat pumps

    Small Business Mini-Split Heat Pump Retrofits

    • 1 Zone – $1,600
    • 2 Zone – $2,000
    • 3 Zone – $2,400
    • Air source heat pumps
    • Click here for more information on eligibility. 

    Multifamily Mini-Split Heat Pumps

    New Construction:

    • 1 to 3 Zones: $3.25/sq. ft.

    Retrofit:

    • 1 to 3 Zones: $7.00/sq. ft.

    Variable Refrigerant Flow (VRF) Systems

    New Construction: 

    • $3.25/sq. ft. with heat recovery
    • $2.75/sq. ft. without heat recovery
    • $2.75/sq. ft. single-phase without heat recovery 

    Retrofit: 

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

    Heat Pump Rooftop Units (RTUs)

    New Construction: 

    • 60 to ≤120 MBH: $30 per MBH
    • 121 to ≤450 MBH: $27.27 per MBH

    Retrofit: 

    • 60 to ≤120 MBH: $130 per MBH
    • 121 to ≤450 MBH: $118.18 per MBH

    Packaged Terminal Heat Pumps

    New Construction: 

    • < 7,000 Btu/h: $380 per unit

    Retrofit: 

    • < 7,000 Btu/h: $430 per unit
    • ≥ 7,000 Btu/h and ≤15,000: $450 per unit
    • > 15,000 Btu/h: $480 per unit

    Vertical Packaged Terminal Heat Pumps

    New Construction: 

    • < 7,000 Btu/h: $380 per unit
    • ≥ 7,000 Btu/h and ≤15,000: $550 per unit
    • > 15,000 Btu/h: $800 per unit

    Retrofit: 

    • < 7,000 Btu/h: $700 per unit
    • ≥ 7,000 Btu/h and ≤15,000: $850 per unit
    • > 15,000 Btu/h: $1,000 per unit

      Water Source Heat Pumps

      • $100 per ton for ducted units with a capacity < 135,000 Btu/h

      Other Electric HVAC Incentives

      Demand Control Ventilation

      • Demand Control Ventilation: $500
      • Demand Control Kitchen Ventilation: $1,000

      ECM Circulator Pumps

      • $75 if < 150 max operating watts
      • $150 for 150-500 max operating watts
      • $250 if > 500 max operating watts

      Energy Recovery Ventilator (ERV) Systems

      • Sensible heat recovery ≥ 55% to< 65%  – $1.50/CFM
      • Sensible heat recovery ≥ 65% to< 75% – $1.75/CFM
      • Sensible heat recovery ≥ 75% to< 85%  – $2.00/CFM
      • Sensible heat recovery ≥ 85%  – $2.25/CFM

      Variable-Frequency Drive (VFD) Systems

      • $400 – $2,300 per unit (incentive varies by system horsepower)

      Propane and Naturas Gas Incentives

      Biomass Boilers and Furnaces

      • Click here for information on incentives for these systems. 

      Commercial Boilers and Furnaces

      • For Boilers > 500 MBtu/h (Natural Gas only) 
      • $5,000 – $12,500 – incentive varies by system size and fuel type 

      Commercial Boiler Controls and Ancillary Equipment (retrofit only)

      • Modulating Burner Control: $1.25 per MBtu/h
      • Standard Boiler Economizer: $950 per MMbtu/h
      • Condensing Boiler Economizer: $1,325 per MMbtu/h
      • Boiler Reset/Lock Out Controls: $375 per Unit
      • Oxygen Trim Controls: $0.75 per Mbtu/h
      • Boiler Turbulator: $9.50 per Unit
      • Programmable Thermostat: $100.00 per Unit

      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.


      Learn More

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