Heat pumps – geothermal or air-to-air systems including ductless solutions – are designed to be used in any home whether it’s new construction, a renovation project or replacing existing equipment. Sioux Valley Energy offers rebates and special electric heat rates to make choosing electric a great value.
Air-to-Air Heat Pump Rebates (2 ton and larger)
- With Electric Back-up Furnace: $1,200
- With Non-Electric Back-up Furnace: $600
Learn more about how Air to Air Heat Pumps work HERE.
Geothermal Heat Pump Rebates (2 ton and larger)
$1,200
Learn more about how Geothermal Heat Pumps work HERE.
Ductless Air-Source Heat Pump Rebates (2 ton and larger)
- Rebate of $300 per structure
Electric Heat Rate
- Reduced rate of 7.45 cents/kWh (compared to regular rate 12.81 cents/kWh)
- Available October – April billing cycles
- Sub-meter install required – Free installation for heat pumps (2 ton and larger) or electric resistance heat (minimum of 8 kW). A one-time sub-meter fee of $300 is charged for installation outside of those kW parameters, if a second sub-meter is required at a structure, or if extensive wiring work is necessary.
If you have an existing heat pump or electric resistance heat that is not part of the reduced electric heat rate program, or you plan to install new or replacement equipment, contact the Beneficial Electrification team at 800-234-1960. We can determine if your equipment is eligible for a free sub-meter installation, and if not, advise on other options to reduce heating costs such as the Time of Use rate.
*Rebate eligibility once every 10 years per account. Rebates cannot exceed the cost of the equipment. Rates are subject to change.
Electric Heat Pump Loans
Loans up to $15,000, 5% interest with a seven-year term are available to assist qualifying members in purchasing heat pump equipment and weatherization products.
To qualify for a Heat Pump Loan:
- An air-to-air or geothermal heat pump must be installed. An electric resistance furnace installed as backup heat for the heat pump can also be included with the heat pump loan, but loans are not available for straight electric resistance heating equipment. Installation costs can also be included. Costs associated with propane and natural gas backup furnaces are not eligible as part of the loan.
- Complete the loan application form. The application must be approved to be eligible for the loan program. Funds will be issued upon project completion in the amount of approved submitted invoices. Inspection and submetering work for the electric heat rate will be provided by Sioux Valley Energy personnel.
How to Apply for a Heat Pump Rebate
- Contact our Energy Services Department at (800) 234-1960.
- Submit a copy of your invoice with heat pump make, model, and verification of the backup system with the online rebate request form or contact Energy Services at 800-234-1960 for other submission options.
- SVE personnel will install a submeter for new electric heat installation or will check an existing submeter to ensure all eligible electric heating equipment is connected to the submeter for the reduced electric heat rate.
- Rebate eligibility is once every 10 years per account. Heat pump equipment must be a minimum of two (2) ton to qualify.
How to Use the Chart
Find the chart of the electric heat you're considering i.e. air-to-air heat pump; geothermal (ground source) heat pump or electric resistance heat.
Find the kWh price for electricity and compare it to prices for propane or natural gas on the same line.
For example, geothermal systems, with electricity at 6.85 cents/kWh is equal to propane (in a 96% efficient furnace) at 68 cents/gallon. If propane costs more than the price listed, it's a more expensive form of heat.