In this episode of the Ask Derek Cole Show, host Derek Cole answers homeowner questions about HVAC incentives, rebates, and whether to replace window units with central air or mini‑split systems. He explains that the 2015 geothermal tax credit has expired, but utility companies still offer rebates—typically around $300—provided the new system meets an exact 15 SEER rating, emphasizing the need to verify actual efficiency after installation. Cole advises that switching from window units to central air depends on the homeowner’s long‑term plans: it makes sense for those staying in the house for many years but offers poor payback for short‑term occupants. He highlights safety concerns, noting that one‑third of home heating fires involve space heaters, which are often used alongside window units, and recommends safety‑shutoff models. Finally, he discusses mini‑split systems as a viable alternative for homes lacking ductwork or with space constraints, citing a log‑cabin example. The episode also marks the departure of regular questioner Megan.
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Hey, on this episode we talk about incentives for your new heating and air system and should I change out my window units for central heating and air. You ask your comfort and energy questions and they get answered. This is the Ask Derrick Cole Show. Hey, this is Derrick Cole. Welcome to episode 66 of the Ask Derrick Cole Show, answering your home and energy comfort heating and air questions. I think, yes. So, got up this morning, 18 degrees outside. I was very happy. Anytime you have to start your car before you get into it, I'm happy.
Are there any rebates or tax credits for installing a new system?
There are rebates and tax credits for installing units The bad thing, in 2015 they ran out. The big, big one was the geothermal tax credit. So you had to have it installed and working by December 31st, 2015 to give you that tax credit. So that is a bummer. So probably the— really the geothermal market in that situation is probably outside of new construction, not really going to happen without that tax credit, which made it very affordable, made it kind of like a traditional heating and air unit. So that's gone, but utility companies still give you, depending on your utility company, but Utility companies, utility companies still give you a rebate depending on your utility. Yeah, it's usually around $300, but it has to be a 15 SEER system, exactly 15 SEER. It can't be a 14.5, has to be a 15. So that is a stickler. So make sure whoever is installing the unit for you and you're looking for that credit you make sure it's actually meeting the requirements because it can be misleading on what the manufacturer says is a 15 SEER and what in real life is a 15 SEER once it's installed. So yes, incentives out there, they will always give you incentives to be more efficient, save money. It's obviously in the power company's best interest for you to put a high efficiency unit into your house. That way you use less of their power and less power plants they have to build and so on and so on. So they will give you credit for that.
Would it be a wise investment to switch from window units to central air?
I would, I would ask the person asking this question, what is the intent here? I mean, are we at 60 and we want to go central air? Are we at 20 and we want to turn this home that has been with window units into a central heating and air unit? Because to me, that is the difference. You know, if you're not planning to stay in the house very long, it's probably not a big return on your investment changing all that out. If it is a long-term solution for you and your family, then yes. I mean, if you're going to stay in the house and you want to, you know, make it comfortable, that is a great decision. If you're looking to move on pretty quickly, then not so much. So it really depends on your situation. And I actually read something today that was very interesting. One-third of all home heating fires are caused by space heaters. So if you have space heaters in your home, you want to buy this kind, and we provide them to our customers when we install units. But it's the kind that when you knock it over or something gets in the way, it shuts it off. The big problem of what's happening is it will fall over and it might be falling over on paper, on clothes, and that's, you know, starting the fire. So that has nothing to do with the window units, but if you're using window units, you're probably using space heaters. So keep that in the back of your mind. So really, you know, it's kind of two answers. It really depends on your intent. So yes for the person looking for a long-term goal, and I would probably say no to the person who's just looking for a few years and you just don't get the payback.
Would a mini-split be a better option?
And it depends on the home as well. I mean, some homes, older homes, a mini-split is perfect for it. Because you can't have ductwork in certain places where it would benefit that house. So a mini-split option would be a good option. It really depends on what the home lets you do. I mean, we had somebody, a customer of ours, who built a log cabin and he put 6 mini-splits in that log cabin because that's what he wanted to do. That was the efficient way to do it and for aesthetic reasons and efficiency. That's what he wanted to do, so we did it and he's happy. It looks great. So mini splits are a great option for those tight spots or when you don't have a lot of room, like a bonus room or an add-on sunroom, something like that where duct necessarily cannot get overhead or under it. But you can put a mini split on the sidewall. So yeah, that would be one option too. Good. All right, episode 66 in the books. Um, as we say goodbye to Megan, this is her last show. Uh, she's moving, so, um, you'll have somebody different behind the camera and asking the questions next week. It will not be Megan, but we wish her luck. We're a family all the same. I guess 66 episodes is the most we can get out of one person, so this might be— this might be what we're looking for in the next one. And if you can make it to 67, you might be all right. No, but make sure you ask your questions, #AskDerekCole, and we'll get them on the show.
