Sustainable Energy Program

1. Funds are available on a first-come, first-served basis beginning Jan. 1 of each year.
2. Take a look at our list of participating contractors.
3. Contact one or more of the SEP participating contractors for a bid and available incentives.
4.  Ask your tax advisor if the project qualifies for a federal tax credit.

Download a snapshot of the 2024 residential incentives & tax credits

Whole-house and facility sealing and insulation
Customers in existing homes and commercial buildings with no wall or minimal attic insulation (R-19 or less) can qualify for up to $1,500 to seal penetrations and upgrade insulation levels to current energy code standards. Incentives are available at $0.80/square foot for wall insulation and $0.50/square foot for attic insulation. A pre and post blower door test also is required.

Contact a Sustainable Energy Program participating contractor for further details. Interested in self-installation? Review the terms and conditions below and contact [email protected] for further information.

• Tax credits available: Insulation // 30% up to $1,200. Visit EnergyStar.gov for further information. LES recommends consulting with a tax professional on qualifying equipment and tax deduction details. 

High-efficiency heat pumps and air conditioners
Customers could receive $600 per system for qualifying central air conditioners and $800 per system for qualifying air source heat pumps. Geothermal heat pumps can qualify for up to $1,500 per system. Incentives for central air conditioners and air source heat pumps are determined by both EER2 (Energy Efficiency Ratio 2) and SEER2 (Seasonal Energy Efficiency Ratio 2). Geothermal incentives are determined by the EER. All are compared to existing energy code minimums.

Contact a Sustainable Energy Program participating contractor for further details. Interested in self-installation? Review the terms and conditions below and contact [email protected] for further information.

• Tax credits available: Heat pumps // 30% up to $2,000. Air conditioners // 30% up to $600. Visit EnergyStar.gov for further information. LES recommends consulting with a tax professional on qualifying equipment and tax deduction details.

Heat pump water heaters 
Customers could receive $500 per qualifying heat pump water heater that is 40 gallons or larger. Heaters with a tank size of 40 to 55 gallons must have a UEF (efficiency rating) of at least 2.0. Heaters above 55 gallons must have a UEF of at least 2.2. The unit must be listed by ENERGY STAR^®. It can be installed in an existing or new home or commercial building. It must be installed in an unconditioned or partially conditioned room that provides at least 1,000 cubic feet of the surrounding air.

Contact a Sustainable Energy Program participating contractor for further details. Interested in self-installation? Review the terms and conditions below and contact [email protected] for further information.

• Tax credits available: Heat pump water heaters // 30% up to $2,000. Visit EnergyStar.gov for further information. LES recommends consulting with a tax professional on qualifying equipment and tax deduction details.

INSULATION

     Qualifications for whole-house sealing and insulation

AIR CONDITIONERS & AIR SOURCE/GEOTHERMAL HEAT PUMPS

     Heat pump/Air conditioner incentives

HEAT PUMP WATER HEATER

Download a snapshot of the 2024 City/LES heat pump combo incentive

The best way to heat your home in the winter and cool your home in the summer is with a heat pump. Electric heat pumps are more energy efficient than other heating and cooling systems and keep your home comfortable year-round. They also reduce your household’s greenhouse gas emissions.

Lincoln residents are eligible for a City of Lincoln-funded incentive toward the purchase and installation of an air source heat pump. This may be combined with an $800 incentive from LES’ Sustainable Energy Program. Funds are available starting Oct. 1 on a first-come, first-served basis until Aug. 31, 2026, or until funds are expended, whichever comes first.

If you are low-to-moderate income:

1. Check to see if you qualify for the $3,000 low- and moderate-income incentive. Your income must be equivalent to or below 80% of the Lincoln Area Median Income.
2. If you think you qualify for the low- and moderate-income incentive, contact the Urban Development Department at [email protected]. Approvals must occur before the heat pump is installed to qualify.
3. See the participating HVAC contractors. Once you have been approved by the Urban Development Department, contact one or more of the Sustainable Energy Program participating contractors for bids and available LES incentives. Contact [email protected] with any questions. 
4. Purchase and install your new heat pump through the contractor you select. The incentives will be applied as a credit on your contractor’s invoice.

If you are above moderate income (general population):

1. See the participating HVAC contractors. Contact one or more of the Sustainable Energy Program participating contractors for bids and available LES incentives. They will apply for the City and LES incentives on your behalf. Contact [email protected] with any questions.
2. Purchase and install your new heat pump through the contractor you select. The incentives will be applied as a credit on your contractor’s invoice.

Residents of the City of Lincoln who:

• Live in and own or rent out a single-family detached home.
• Live in and own a row home, town home, condo or duplex.

The above criteria are only applicable to the City incentive. All LES customers installing qualifying heat pumps are eligible for the $800 LES incentive. Contact [email protected] for more details.  
 

• The purchase and installation of air source heat pumps or mini-split heat pumps.
• Heat pumps must replace an existing heat pump, central air conditioner, or window AC that is at least five years old. A heat pump can be matched with a gas furnace or an electric furnace.
• Heat pumps must have a minimum SEER2 (Seasonal Energy Efficiency Rating) of 15.2 and a minimum EER2 (Energy Efficiency Ratio) of 12. 

• Any residence outside of Lincoln city limits.
• Commercial property, including multi-family housing.
• Row homes, town homes, condos and duplexes if the unit is renter occupied.
• Ground source heat pumps.
• New residential construction.
• More than one heat pump per household.
• Installation of a new heat pump without replacement of an older system.

The above criteria are only applicable to the City incentive. See the SEP // Residential or SEP // Commercial & Industrial portion at LES.com/SEP or contact [email protected] for more details on LES incentives.

Federal tax credits are available for up to 30% of the cost of a new heat pump. This credit may be used in addition to the incentives from the City of Lincoln and LES. Visit EnergyStar.gov for further information. The City recommends consulting a tax professional on qualifying equipment and tax deduction details. You may also qualify for additional savings on other electrification updates. Visit the Inflation Reduction Act calculator for more information.

1. Funds are available on a first-come, first-served basis beginning Jan. 1 of each year.
2. Take a look at our list of participating contractors.
3. Contact one or more of the SEP participating contractors for a bid and available incentives.
4.  Ask your tax advisor if the project qualifies for a federal tax credit.

Download a snapshot of the 2024 commercial & industrial incentives & tax credits

Whole-house and facility sealing and insulation
Customers in existing homes and commercial buildings with no wall or minimal attic insulation (R-19 or less) can qualify for up to $1,500 to seal penetrations and upgrade insulation levels to current energy code standards. Incentives are available at $0.80/square foot for wall insulation and $0.50/square foot for attic insulation. A pre and post blower door test also is required. Talk to one of the Sustainable Energy Program participating contractors for further details.

High-efficiency heat pumps and air conditioners
Customers could receive $600 per system for qualifying central air conditioners and $800 per system for qualifying air source heat pumps. Geothermal heat pumps can qualify for up to $1,500 per system. Incentives for central air conditioners and air source heat pumps are determined by both EER2 (Energy Efficiency Ratio 2) and SEER2 (Seasonal Energy Efficiency Ratio 2). Geothermal incentives are determined by the EER. All are compared to existing energy code minimums.

Heat pump water heaters 
Customers could receive $500 per qualifying heat pump water heater that is 40 gallons or larger. Heaters with a tank size of 40 to 55 gallons must have a UEF (efficiency rating) of at least 2.0. Heaters above 55 gallons must have a UEF of at least 2.2. The unit must be listed by ENERGY STAR^®. It can be installed in an existing or new home or commercial building. It must be installed in an unconditioned or partially conditioned room that provides at least 1,000 cubic feet of the surrounding air.

Commercial and industrial lighting
Incentive payments are available for customers reducing electrical demand and costs associated with lighting (within existing commercial buildings). Lighting in new facilities does not qualify. Screw-in bulbs, CFL bulbs, GU base bulbs, track lights and can lights do not qualify. All new lighting products must be LED. LED lighting replacing LED lighting does not qualify.

Commercial and industrial energy efficiency
This program is designed to help commercial and industrial customers achieve peak-demand savings through one or more efficiency measures. Components of the program include air conditioner/heat pump, variable frequency drives, compressed air systems upgrade, energy management systems installation, optimization or upgrade, and refrigeration system. In addition, customers can work with their assigned LES account executive to tailor a program that results in reduced system peak demand.

Tax deductions available 
The Inflation Reduction Act extended and expanded these tax deductions. We will have updated information on this page as soon as guidance becomes available from the IRS.

A tax deduction of up to $1.80 per square foot is available to owners or designers of commercial buildings or systems that demonstrate a 50% reduction in energy usage accomplished solely through improvements to the heating, cooling, ventilation, hot water, and interior lighting systems. Partial deductions of up to $.60 per square foot can be taken for qualifying measures.

LES recommends consulting with a tax professional on qualifying equipment and tax deduction details. 

General

Custom

Insulation

     Qualifications for whole-house sealing and insulation

AIR CONDITIONERS & AIR SOURCE/GEOTHERMAL HEAT PUMPS

     Heat pump/Air conditioner incentives

HEAT PUMP WATER HEATER

Energy management systems

Compressed air systems

Lighting

     Lighting incentives

Variable frequency drives

Refrigeration systems