City Announces Latest Heat Pump Incentives Available September 1

City Announces Latest Heat Pump Incentives Available September 1

Published on August 28, 2025

The City of Lincoln today announced that beginning Monday, September 1, Heat Pump Incentives will again be available to help Lincoln homeowners save on energy costs and reduce greenhouse gas emissions.

The City of Lincoln and Lincoln Electric System (LES) developed the incentive program to make energy-efficient heating and cooling systems more affordable and accessible for residents. To date, the City's incentives have been used to install 475 new heat pumps for Lincoln residents.

Lincoln homeowners can receive incentives up to $3,800 for heat pump installation. The incentive structure includes $500 to replace a heat pump at least five years old or $1,500 to replace an air conditioner. Low- to moderate-income residents may receive up to $3,000 per household, and all incentives can be combined with an LES $800 incentive.

Kim Morrow, Chief Sustainability Officer, said funds are available on a first-come, first-saved basis. This is the latest round of incentives approved by the City Council, and a total of $250,000 is available. She said the initiative is a great way for residents to play an active role in creating a more sustainable community.

"This initiative is not only a critical part of our sustainability efforts, but also a simple way for residents to save energy, reduce costs, and keep their homes more comfortable year-round," Morrow said. "By upgrading your system, you're not only reducing your energy costs but also making a positive impact on Lincoln's future. Every heat pump installed moves us one step closer to a cleaner, healthier environment for ourselves and future generations."

Federal tax credits are available for up to 30% of the cost of a new heat pump until December 31, 2025. This credit may be used in addition to the incentives from the City of Lincoln and LES. The City recommends consulting a tax professional on qualifying equipment and tax deduction details.

"This program is easy to navigate," said Jessica Kneifl, LES Energy Services specialist. "Customers select a participating HVAC contractor who will then handle the paperwork and apply for the incentives on their behalf. The financial credits are directly applied to the customer's invoice, making participation as seamless as possible."

For more information on heat pump incentives and the LES Sustainable Energy Program, visit lincoln.ne.gov/HeatPump, LES.com/SEP or email [email protected].