furnace incentives and tax credits

There are some elementary issues you should pay attention to when buying and installing a new furnace.

Get several cost estimates, check what the quotes include, check the contractor’s references, etc. His experience is very important, but make sure that he is also insured and licensed.

Check with him the possible tax credits, loans or other incentives.

Condensing furnaces & Rebates and Discounts

The energy efficiency of modern furnaces can be above 90% (they are "condensing", in that case, that is, they recapture most of the water vapor wasted in old furnaces, condensing it and producing extra-heat). This type of high efficient furnaces are more expensive but allows significant energy savings and benefit from rebates in some states. Take that into account. See if there is any rebate, discount or more advantageous loans to your energy efficiency remodeling.

USA

In USA, biomass stoves used to heat homes and water can benefit from Federal tax credits (30% of the cost, up to $1500). They should have a thermal efficiency rating of at least 75% (as measured using a lower heating value).

See:

Federal rebates, discounts, etc. for energy efficiency and renewables
State Level incentives, discounts and loans

UK

The Department of Trade and Industry (DTI) Low Carbon Buildings Program provides grants to help with the costs of efficient technologies.

See: Housing and Buildings Energy Savings Trust.

CANADA

For incentives and rebates involving renewables and energy efficiency in your region, check out the Incentives and Rebates database on the Office of Energy Efficiency web site: Canadian Incentives and Rebates for Alternative Energies.