State Unveils Heat Pump Rebates as AC Systems Crumble

PHOENIX — Arizona residents facing the challenge of failing or outdated air conditioning systems are set to receive significant financial support through a new state program.

Families earning less than 80% of the area median income (AMI) can now access up to $8,000 for purchasing and installing a heat pump. The AMI varies across counties, with figures ranging from approximately $30,000 in Apache County to about $55,000 in Maricopa County.

Additionally, those with incomes between 81% and 150% of the AMI can qualify for up to $4,000, aimed at easing their cooling system burdens. Funding stems from the federal Inflation Reduction Act of 2022, as emphasized by David Turk, the deputy secretary of energy, during a briefing on Thursday.

Despite the program’s launch occurring just months before the general election, Turk clarified that the timing is unrelated to the presidential race and highlighted the urgency of distributing funds effectively.

“Get that money out there as quickly as you possibly can,” he stated, citing the availability of $9 billion for rebate programs. State governments have leeway in crafting their programs; Arizona, under Governor Katie Hobbs, allocated $76 million specifically for heat pumps.

Heat pumps serve a dual purpose, functioning as reversible air conditioners that transfer heat from indoors to outdoors in summer while drawing warmth from the external environment in winter. This decision was largely driven by the state’s experiences over the past two years with record-breaking heat.

“Hundreds of families are going to experience AC malfunction or outage,” Hobbs remarked, underscoring the financial challenges many face when attempting to replace or repair their cooling systems.

Turk noted that while many Americans wish to adopt clean energy technologies, significant upfront costs often inhibit access, particularly for lower-income households. His assertion that around 10% of Arizonans experience a “significant energy burden” draws attention to the necessity for programs like these. He estimated that families could save approximately $300 annually with an efficient heat pump.

Alternative programs are available for weatherization improvements, yielding average savings of $372 each year, while rooftop solar initiatives bring about annual savings of around $1,600. However, the tax credit for solar installations poses its own challenges, primarily benefiting those with higher federal tax bills.

Governor Hobbs acknowledged that regulatory changes by Arizona utilities have made solar less appealing, expressing confidence in the financial advantages of solar energy despite these hurdles. The state received $156 million from the Environmental Protection Agency aimed at enhancing access to solar power for low-income families, renters, and rural communities.

The heat pump rebate program marks only the beginning of Arizona’s plan to utilize federal funds efficiently. Future initiatives will potentially extend rebates to various appliances, including electric stoves, dishwashers, and higher-efficiency water heaters, further promoting accessible and sustainable energy solutions for Arizonans.