Paying for HVAC work

Rebates come with conditions, and missing one can cost you the rebate. ENERGY STAR says many utilities offer incentives for installing ENERGY STAR certified air source heat pumps. For its 2026 Home Energy Rebate Program, Peoples Gas requires all equipment to be new and meet program specifications, does not accept used or rebuilt equipment, and requires the old equipment to be removed or permanently disconnected. The existing equipment must be working when the application is submitted. Applications must be received within 30 days of installation or by December 31, 2026, whichever comes first. Qualifying homes must have a Service Classification 1 account. These rules are for one program year and can change.

An old appliance can sometimes bring money back too. The EPA suggests first checking with your electric utility to see whether it offers a rebate or bounty program, meaning an appliance turn-in, and confirming that your appliance meets its requirements, such as working condition or a minimum age.

Source: ENERGY STAR · Peoples Gas · U.S. EPA

Some utility programs include a loan for efficiency work. A July 2025 Citizens Utility Board fact sheet on ComEd's efficiency programs says homeowners and owners of residential buildings of 4 units or less may apply, with a credit score of 640 or greater, and must pre-qualify for the loan before buying the product or service. Those terms can change, so confirm them before you plan around a loan.

You may also be offered an extended warranty or service contract. The FTC says these cover repairs or maintenance for a set amount of time, but your warranty may cover the same repairs for the same time. An extended warranty or service contract won't cover all situations or repairs. Look for costs that might be hidden, like deductibles or fees you must pay each time the product is serviced. A difficult claims process or waiting for reimbursement can reduce the value of having coverage.

Source: Citizens Utility Board · Federal Trade Commission

Illinois has programs for households with lower incomes. The Illinois Home Weatherization Assistance Program helps low income households conserve fuel and reduce energy costs by making their homes more energy efficient. The state says the household's combined income must be at or below 200% of the federal poverty level. Weatherization can clean and tune heating and cooling systems, or replace them when they are cost justified over their expected life. The Low Income Home Energy Assistance Program, LIHEAP, helps eligible low-income households pay for home energy, mainly heating during winter. Its annual eligibility levels are set by available funding and may not exceed 60% of the state median income.

Utilities run their own programs as well. The July 2025 Citizens Utility Board fact sheet says ComEd customers at or below 80 percent of the Area Median Income may be eligible for a free in-home Home Energy Assessment. Be careful with letters that promise money: the state agency that runs weatherization has been made aware of fraudulent "notice of award" letters claiming to come from it. The utilities and help page has the details on each program, and its limits change from year to year.

Source: Illinois DCEO · Citizens Utility Board

A clear payment plan protects you and the contractor. The Attorney General says the contract should state the timing of the work and the payment schedule, including the down payment, later payments and the final payment. It warns about a contractor demanding cash payment or full payment before the job is complete. Before you pay, it suggests asking for a signed and notarized statement listing everyone your contractor hired to work on your home, with their contact information and the amount they are owed. The hiring page covers contracts and your right to cancel.

Source: Illinois Attorney General

Your papers are worth keeping long after the work is done. The CFPB suggests getting copies of signed contracts, guarantees and warranties before work begins. It says it's important to keep written records and receipts of all work, especially if your insurance company or FEMA pays for the work. In Chicago, a licensed home repair business must give you a written invoice when the work is done that describes the work, the parts and the exact charge for each.

Warranties are only useful if you can find them. The FTC says to save a copy of the warranty, and if you shop online, print or download a copy for your records. If a salesperson makes a spoken promise, like free repairs, get the promise in writing. If you report a defect during the warranty period and the product isn't fixed properly, the company must correct the problem, even if the warranty expires before it is fixed. A folder with the contract, invoice and warranty makes any later claim simpler.

Source: Consumer Financial Protection Bureau · City of Chicago · Federal Trade Commission