City Water, Light and Power (CWLP) customers looking to upgrade or install new HVAC systems should look into the benefits of heat pumps and geothermal systems. These types of systems are capable of providing both heating and cooling needs year round and provide considerable energy savings. Heat pumps act as both air conditioners and heating units for a property. These units move heat out of a property in the summer and then reverse it back inside in the winter.
Residential and commercial customers of CWLP can earn a rebate for installation of new and replacement systems. In addition, residential customers could also be eligible for a Federal Tax Credit and a 9% electric rate discount from CWLP.
- For those meeting application eligibility and with pre-approval where required* CWLP rebates for new and replacement heat pumps will be awarded and will vary by system size, type of system and customer type. Rebates begin at $200 per ton of cooling capacity and go up to $800 per ton on the high end for commercial customers installing new and first-time geothermal installations.
- Updated Federal Tax Credit for air source heat pumps is 30% of cost up to $2,000 for those meeting qualifications https://www.irs.gov/pub/taxpros/fs-2022-40.pdf and 30% of total cost for geothermal systems https://www.energystar.gov/about/federal_tax_credits/geothermal_heat_pumps.
- PLUS, CWLP residential electric customers who install heat pumps as their primary heating source are eligible for our Electric Heat Rate, which provides a 9% savings over CWLP’s regular residential electric rate from September 16 through May 15. (Customers who are currently on CWLP's Electric Rates 34-37 already receive this savings.)
*Before making a purchasing decision, be sure to consult with a licensed HVAC contractor and see that a load sizing calculation is done and that a high efficiency unit is considered. Pre-approval is required for commercial customers and rebate allowance amounts will vary depending on size.
While using a heat pump means shifting costs from the gas side of your energy bill to electric, the savings can add up by reducing your overall energy use because of the unit’s efficiency year-round. Today's air source heat pump can reduce your electricity use for heating by approximately 65% compared to electric resistance heating such as furnaces and baseboard heaters. High-efficiency heat pumps also dehumidify better than standard central air conditioners, resulting in less energy usage and more cooling comfort in summer months. Geothermal heat pumps can yield a 70% to 80% reduction in energy use. Learn More:
https://www.energy.gov/energysaver/heat-pump-systems.
Residential Heat Pump Rebate Form
Electric Heat Rate Application
Commercial Heat Pump Rebate Form
For information on amounts available for all of CWLP’s rebates and full program details on program pre-approval requirements, please contact the CWLP Energy Services by phone at 217.789.2070 or email at
nrgxprts@cwlp.com.