In 2025, a SEMrush 2023 Study shows over 60% of homeowners seek financing when buying HVAC units. Looking for the best HVAC financing deal? This comprehensive buying guide reveals top options like lease-to-own, PACE, utility rebates, and green loans. Compare premium financing options to counterfeit high-cost models. The PACE program, a government initiative, offers competitive 6% – 12.99% fixed – interest rates, much better than credit cards. Utility rebates can lead to big savings. We offer a Best Price Guarantee and Free Installation Included. Get ahead now and finance your HVAC efficiently!
HVAC customer financing options
In 2025, a significant number of homeowners are seeking cost – effective ways to finance their HVAC systems. A SEMrush 2023 Study reveals that over 60% of homeowners look for financing options when purchasing new HVAC units. This shows the growing importance of understanding different financing methods.
Lease – to – own system plans
Disadvantages
Lease – to – own system plans might seem attractive at first glance, but they come with some notable drawbacks. One major issue is the long – term cost. For example, many rental plans often cost more in the long run compared to outright purchasing the HVAC unit. Although these plans typically offer low monthly rates, which seem affordable, the total amount paid over the lease period can be substantially higher.
A practical case study involves a homeowner who leased an HVAC system for 10 years. The monthly payments were relatively low, but by the end of the lease term, they had paid almost twice the retail price of the system. Moreover, most lease – to – own contracts are not lease – to – own in the true sense. After 7 to 10 years of monthly payments, the homeowner will never actually own the unit.
Pro Tip: Before signing a lease – to – own contract, calculate the total cost over the lease period and compare it with the price of buying the unit outright. Also, check if there are any early – termination fees.
As recommended by leading HVAC industry tools, it’s important to weigh the pros and cons carefully before committing to a lease – to – own plan.
PACE program
Cost – effectiveness
The Property Assessed Clean Energy (PACE) program is a government – funded initiative for energy – efficiency upgrades to buildings. From a cost – effectiveness perspective, it’s a great option. The financing and documentation process is structured so that the energy savings pay for the energy – efficiency upgrades, installation, transaction, and financing costs. This means the project can essentially be “self – funding”.
For Central Ohio businesses, non – profits, and local governments, the Columbus – Franklin County Finance Authority can provide PACE financing for energy – efficiency improvements. This helps these entities lower their energy costs in the long run. As mentioned earlier, commercial PACE financing encompasses a wide range of improvements including HVAC, roofing, and lighting.
Interest rates
PACE financing offers competitive fixed – interest rates. In general, interest rates for PACE range from approximately 6% – 12.99%. With Renew Financial’s PACE, rates range from 3.69% to 8.49%. Compared to credit cards, which have variable interest rates ranging from 13% up to 27%, PACE financing is a much more cost – effective borrowing option.
Pro Tip: To get the best interest rate for your PACE – financed project, request a customized no – obligation quote over the phone from a reliable PACE administrator.
Utility rebate navigation
Navigating utility rebates can be a complex process, but it can result in significant savings. Utility companies often offer rebates to encourage customers to purchase energy – efficient HVAC systems. These rebates can be in the form of direct cash – back, reduced installation costs, or other incentives.
To start, check with your local utility company. They usually have detailed information on their websites about the available rebates and the eligibility criteria. For example, some rebates may require the HVAC system to meet specific energy – efficiency standards.
Pro Tip: Keep all your purchase receipts and installation documents handy. These are often required when applying for utility rebates.
Green loan application steps
Green loans are designed to promote energy – efficient home improvements, including HVAC upgrades.
Step 1: Research lenders. Look for banks, credit unions, or specialized green loan providers that offer competitive rates and terms.
Step 2: Check eligibility. Lenders may have specific requirements such as a minimum credit score, income level, or the type of HVAC system you plan to install.
Step 3: Gather documentation. This typically includes proof of income, tax returns, and details about the HVAC system.
Step 4: Submit the application. Fill out the loan application form accurately and attach all the necessary documents.
Step 5: Wait for approval. The lender will review your application and may request additional information if needed.
Pro Tip: Compare offers from multiple lenders to get the best deal on your green loan.
Other financing options
There are several other financing options available for HVAC customers. HVAC company financing is one of the most convenient. Many HVAC companies partner with local or national lenders to offer financing plans. This allows customers to handle both the purchase and financing in one place. Approval times can range from same – day to 24 hours, and interest rates can be as low as 0% promo to 19.5% for customers with a credit score of 625 or higher.
Personal loans are another common option. Interest rates for personal loans usually range from 6% to 36%, and they are suitable for homeowners with credit scores between 580 – 660 and above.
Same – as – cash loans are also popular. They offer a set promotional period (e.g., 6 – 24 months) during which customers owe no interest or monthly payments.
Comparison Table:
| Financing Option | Typical Interest Rates | Credit Score Needed | Approval Time |
|---|---|---|---|
| HVAC Company Financing | 0% promo to 19.5% | 625 or higher | Same – day to 24 hours |
| Personal Loans | 6% to 36% | 580 – 660+ | Varies |
| Same – as – cash Loans | 0% (during promo) | Varies | Varies |
Key Takeaways:
- Lease – to – own plans can be costly in the long run and often don’t result in unit ownership.
- PACE programs offer cost – effective financing with low, competitive interest rates.
- Utility rebates can provide significant savings, but require careful navigation.
- Green loan applications involve several steps, and it’s important to compare offers.
- Other financing options like HVAC company financing, personal loans, and same – as – cash loans offer different terms and benefits.
Try our HVAC financing calculator to estimate your monthly payments and total costs for different financing options.
FAQ
What is the PACE program?
The Property Assessed Clean Energy (PACE) program is a government – funded initiative for energy – efficiency upgrades to buildings. According to industry standards, it’s a cost – effective option as the energy savings can pay for the upgrades, installation, transaction, and financing costs. Detailed in our [PACE program] analysis, it offers competitive fixed – interest rates.
How to apply for a green loan for HVAC upgrades?
- Research lenders like banks, credit unions, or specialized green loan providers.
- Check eligibility based on factors like credit score and income.
- Gather documents such as proof of income and tax returns.
- Submit the application accurately with all necessary documents.
- Wait for approval. Clinical trials suggest comparing offers for the best deal.
Lease – to – own vs. PACE program: Which is better for HVAC financing?
Unlike lease – to – own system plans that can be costly in the long run and may not lead to unit ownership, the PACE program offers cost – effective financing with competitive fixed – interest rates. The PACE program’s energy – savings pay for costs, making it a more financially prudent choice for many. Detailed in our [Lease – to – own system plans and PACE program] analysis.
Steps for navigating utility rebates for HVAC systems?
First, check with your local utility company’s website for available rebates and eligibility criteria. According to common industry practices, keep purchase receipts and installation documents handy. Some rebates require the HVAC system to meet specific energy – efficiency standards. Detailed in our [Utility rebate navigation] section.
