You are here » Energy Efficiency Tax Credits, Rebates and Financing: What Options Are Available for You?An HVAC system's life depends upon proper maintenance and repair. A heating, ventilation and air conditioning (HVAC) system heats and cools a home by drawing air from the outside. The National Association of Home Builders says that, on average, units last 15 to 25 years. According to the Home Improvement Guide, they cost about $3,000 to $5,000 if your ducts function well, or $6,000 to $10,000 if you need new ones. Getting credit or a loan helps you meet the significant financial committment that HVAC installation brings. You can find financing through dealers and retailers, your home's value, government loan programs and your power company. Step 1Get financing from the HVAC manufacturer or seller. Manufacturers, such as Lennox, Carrier and Trane, arrange with credit card companies to let you charge the purchase price. You can apply online with the manufacturer or dealer or in person at the dealer's office or store.

Big-box home improvement retailers, such as Sears, Lowes and Home Depot, offer their own credit cards. With many of these cards, you are not limited to just the HVAC, but may make other purchases and get cash advances. These cards generally don't rely on your home to guarantee repayment. As a result, interest rates can run as high as 28 percent on some cards. how much new air conditioning unit costStep 2Use your home equity to finance the HVAC. best air conditioning units to buyYou can borrow against the difference between your home's value and what you owe on it with a home equity loan or home equity line of credit. cost of new ac unitsA home equity loan is a one-time draw, while a home equity line of credit works like a credit card.

Your loan is limited to 75 percent to 80 percent of the equity. If you have $10,000 in the home, you can use up to $7,500 to $8,000 to buy the system. You pay less interest with loans against your home than dealer or store-connected credit cards. Borrowing against your home makes your HVAC purchase tax deductible, but you can lose your home and the HVAC if you fall behind. Step 3Consider a home improvement loan backed by the Federal Housing Administration. According to Energy Star, your HVAC replacement is a home improvement for which you can get FHA financing. The federal government has rolled out a pilot PowerSaver program targeting those who choose energy-efficient HVAC units, typically those with the Energy Star label. Both the traditional Federal Housing Administration and the pilot programs let you borrow up to $7,500 without putting up your home as collateral, but you must have home equity to participate in the PowerSaver program. Step 4Check with your power company or local agencies for options and help.

Providers, such as PSNC Energy in North Carolina, connect with participating dealers to let you pay for your HVAC through your monthy electric bill. According to Energy Star, power companies and energy loan programs will help you with low interest rates if you opt for energy-efficient systems and products; Austin Energy, community owned and run by the City of Austin, has interest rates from zero percent to 6.5 percent depending on the loan amount. Tips References The Home Improvement Guide: HVAC Prices and Average Costs for Residential InstallationsNational Associaiton of Home Builders/Bank of America Home Equity: Study of Life Expectancy of Home ComponentsLennox: HVAC Financing: Go GE CapitalCarrier: Carrier Credit CardEnergy Star: Financing Guidebook for Energy Efficient Program Sponsors; December 2007Indiana Department of Financial Institutions: Home Equity Loans & Lines of CreditUnited States Department of Housing and Urban Development: Property Improvement Loan Insurance (Title I)Lawrence Berkley Naitonal Laboratory: Environmental Energy Technologies Division: Clean Energy Financing Policy Brief: HUD PowerSaver Pilot Loan Program;

Dec. 10, 2010Federal Register: Federal Housing Administration: Notice of FHA PowerSaver Home Energy Retrofit Loan Pilot ProgramPSNC Energy: Do You Offer HVAC Financing? Photo Credits Jupiterimages/liquidlibrary/Getty ImagesCommercial, Industrial, Local Goverment | Questions About Your Rebate Status? Do you have a question about a rebate that you already submitted? Please contact us at 866-NJSMART. You may also submit your question online. Please allow up to 120 days to receive a rebate. If you're interested in purchasing natural gas products, we can help you finance them at a competitive interest rate. One advantage of financing through PSNC Energy is that your payments can be added to your monthly natural gas bill. Natural Gas Product and Water Heater Financing Purchase your natural gas water heaters, gas logs, space heaters, gas grills or other energy-efficient natural gas products from PSNC Energy, and we can help you finance them at a competitive interest rate for up to 36 months.

Special 0% financing is available for 12 months on natural gas logs from September 1-November 30. Call us at 1-866-546-5369. PSNC Energy can help you finance your central heating and air conditioning equipment when you buy qualifying HVAC systems through a participating dealer. Your loan payments can even be added to your monthly natural gas bill. Natural Gas Piping Financing If you purchased natural gas products elsewhere and require natural gas piping to be run to that appliance, we can help. We can schedule a representative to come to your home and provide you with an estimate. PSNC Energy appliance sales, installation, maintenance, and repair are not a part of the regulated services offered by PSNC Energy and are not in any way sanctioned by the North Carolina Utilities Commission. There is no advantage to customers of PSNC Energy if they buy these products or services from PSNC Energy. A customer does not have to buy such products or services in order to continue to receive the same safe and reliable natural gas service from PSNC Energy.