Rebates make new AC a hot deal

Unlike the state's appliance rebate that burned through all $17.5 million in the first 36 hours, the online ticker counting down the $1,500 rebates for replacing central air conditioners hasn't budged from the $14.9 million posted when the program started Monday.

That's not for lack of interest but more a result of the longer process involved in securing the cash.

Area heating and air contractors say calls and appointments are up from customers interested in rebates that - combined with federal tax credits, manufacturer rebates and rebates for GRU customers - can total more than $5,000 and cover a majority of the cost of many new systems. Some have installed new systems this week.

"The rebates bring it down below my cost on the equipment," said Bob McCollum of A+ Air Conditioning and Refrigeration.

He said he heard from a half-dozen interested people on the first day of the program, including some he'd provided estimates to in recent weeks.

McCollum, who also is president of the Gainesville Air Conditioning Contractors Association, recommends getting three estimates.

The state rebate program requires that homeowners purchase qualified Energy Star central air conditioners, air source heat pumps or geothermal heat pumps put in by state-licensed HVAC installers. Many homes also will require duct repairing and sealing. A duct test by a qualified third-party tester must show 15 percent or less air leakage to the outside.

Homeowners then mail in an application with copies supplied by contractors of the receipt, the permit from the city or county, the duct test report and a report used to determine the optimally sized unit for the home.

The rebate is available until Dec. 31 or until the money runs out.

Because of the cost of HVAC units and the time needed for the application process, most contractors and state officials think the funding could last two or three months, possibly into December.

"Unlike a refrigerator, where someone might look at an old one and say 'I hate this avocado green,' or 'I want new French doors,' you don't do that with air conditioners," said Brenda Buchan, program manager with the Florida Energy and Climate Commission. "The only time you replace it is if it needs to be replaced."

But Kevin Lyons of Mid-Fla Heating & Air said he thinks the rebates will go fast.

The nearly 10,000 rebates available amount to about 150 per county.

Not every home is a good candidate for the program. Older homes with sheet-metal duct work that is hard to seal might never be able to pass the 15 percent air leakage test, state officials say, and ducts that are inaccessible - such as those installed between walls or soffits - would be difficult and costly to repair.

But for well-insulated homes with sealed ducts, a more energy-efficient HVAC can cut heating and air costs by more than half.

Tim Schubert, of Gainesville, set up an appointment for Wednesday with a contractor after hearing about the multiple rebates. He said he also was motivated by his July electric bill, his first to top $400.

"We've been on borrowed time for a while," he said of his 26-year-old unit. "I don't think we're going to wait for it to break now."

Several contractors said the rebate would extend their summer season, following an uptick in business once the weather turned hot.

The state Legislature allocated the $15 million of federal stimulus money for the HVAC rebates to reduce energy use and improve business for heating and air contractors hurt by the home construction downturn.

HVAC contractors that specialize in new construction have been particularly hard hit.

Lyons said service calls are up in recent years, with more people trying to make their ACs last, and Mid-Fla specializes in service and replacements.

"We're getting around 20 to 30 applications a day for employment where local companies are laying off now," he said. "Maybe this will help to stop the bleeding."

Gainesville contractors also have benefited from Gainesville Regional Utilities' three-year-old rebates that aren't available in other parts of the state, said Tom Worthmann, president of Comfort Temp.

GRU's program has given Gainesville a head start on the state rebates, with a list of trained and qualified contractors and a third-party duct tester under contract.

Arthur Annas is chief operating officer of airEnalasys, the Palm Harbor-based duct tester. His company is conducting six or seven tests a day already in Gainesville as a result of the rebates, and his work is up 40 percent statewide, he said.

He anticipates that a statewide shortage of qualified duct testers could slow the program.

He also knows of several contractors who are opting out of the rebate program, afraid it will end up costing them if they don't follow rules they say are too vague.

Lyons said those who do participate will be busy a little longer but that like the Cash for Clunkers program for autos, the uptick will take away from next year's sales.

"As to being the fix from a stimulus standpoint, I don't think it's that," Lyons said.