New Power Moves 2024 rebate offers homeowners more heating options

Homeowners will soon have new options to receive Power Moves rebates for upgrading heating equipment while staying warm in the winter.

Starting January 1, homeowners will be eligible for a $500 rebate for adding an air source heat pump to an existing natural gas furnace. Previously, a rebate was offered for an air source heat pump replacing electric resistance or fossil fuel and central air conditioning systems. The new air source heat pump must be able to heat and cool an entire home to be eligible for a Power Moves rebate.

“Traditional air source heat pumps are efficient and will carry the heating load down to about freezing, and then the heating system would switch over to gas heat,” said Laura Matney, member relations and strategic electrification manager for Wabash Valley Power Alliance, which administers the Power Moves program with its member electric distribution cooperatives. “Natural gas heat is still very affordable, so that is a benefit to the homeowner.”

A natural gas backup heating system reduces demand on the energy grid compared to an electric resistance backup heating system, Matney said. That can be particularly beneficial in the winter, when brutally cold temperatures can mean more people are using electricity to heat buildings, including with inefficient space heaters.

“If we can encourage people to use dual fuel heating systems, that’s good for them and also good for their electric co-op because we don’t have to purchase more power on the market at times of high demand, when it is incredibly expensive,” Matney said. “That, in turn, helps keep our wholesale rates lower, and we pass that savings along to the members.”

Increasing efficiency leads to increased rebates

Wabash Valley Power and its member cooperatives worked with an energy analysis company in 2023 to review the Power Moves rebates in comparison to expected annual savings each upgrade provides. The analysis led to several rebates increasing. The rebate for heat pump water heaters, for instance, increased to $800 from $600.

“They use a lot less electricity than a typical electric water heater, and they also help keep from powering on during times of peak energy demand time because they are so efficient,” Matney said. “They offer enough energy savings that we could increase the amount that we return to the homeowner installing a heat pump water heater.”

The Power Moves rebate for Wi-Fi thermostats also increased to $75 from $45. Wi-Fi thermostats can be remotely controlled, such as by a phone or mobile device, which allows homeowners better control than traditional thermostats.

“If homeowners are away for the day and they want to set the thermostat back, they can do that. They also can set a schedule and adjust it as needed,” Matney said. “There are multiple benefits to a Wi-Fi thermostat.”

Visit our Power Moves Residential Rebates page for details on rebates available for 2024, then contact your local electric cooperative’s energy advisor to begin the process.