LAST VERIFIED: JULY 2026
HVAC Rebates for East Dundee and the Fox River Valley
Here's the current picture for homeowners in East Dundee, Algonquin, Barrington, Elgin, and the surrounding Fox River Valley — plus an honest account of what went away this year.
Most rebate pages you'll find online are out of date, and the ones that aren't tend to quote a single headline number that doesn't match what you actually receive. The programs are tiered. What you get depends on the equipment you install, its capacity, and whether you bundle a thermostat.
Most rebate pages you'll find online are out of date, and the ones that aren't tend to quote a single headline number that doesn't match what you actually receive. The programs are tiered. What you get depends on the equipment you install, its capacity, and whether you bundle a thermostat.
Up to $2,075
ComEd heat pump discount with a qualifying smart thermostat bundle
$275
Nicor furnace bundle for a ≥97% AFUE furnace plus smart thermostat
$600
Duct sealing rebate available through Nicor Gas with an approved contractor
90 days
Nicor application window after installation, or January 31, 2027
Two Utilities, Two Separate Programs
Nearly every home in our service area is served by ComEd for electricity and Nicor Gas for natural gas. These run independent rebate programs with different rules, different paperwork, and different deadlines.
You can claim from both on the same project. Most homeowners don't realize this, and it's where the largest savings usually sit.
You can claim from both
You can claim from both on the same project. Most homeowners don't realize this, and it's where the largest savings usually sit.
ComEd: Heat Pump Discounts
ComEd's residential heat pump incentives are structured in tiers based on efficiency rating and system capacity. Adding a qualifying ENERGY STAR smart thermostat increases the discount at every tier.
Air Source and Centrally Ducted Systems
Efficiency tier | System size | Discount | With ENERGY STAR smart thermostat |
|---|---|---|---|
| Tier 1 - ≥15.2 SEER2, ≥9.4 EER2, ≥8.1 HSPF2 | Under 2.5 tons | Up to $900 | Up to $975 |
| Tier 1 - ≥15.2 SEER2, ≥9.4 EER2, ≥8.1 HSPF2 | 2.5 tons and above | Up to $1,400 | Up to $1,475 |
| Tier 2 - ≥17 SEER2, ≥9.4 EER2, ≥8.5 HSPF2 | Under 2.5 tons | Up to $1,500 | Up to $1,575 |
| Tier 2 - ≥17 SEER2, ≥9.4 EER2, ≥8.5 HSPF2 | 2.5 tons and above | Up to $2,000 | Up to $2,075 |
Ductless and Mini-Split Systems
Efficiency requirement | System size | Discount | With ENERGY STAR smart thermostat |
|---|---|---|---|
| ≥17 SEER2, ≥9.4 EER2, ≥9 HSPF2 | Under 1.5 tons | Up to $500 | Up to $575 |
| ≥17 SEER2, ≥9.4 EER2, ≥9 HSPF2 | 1.5 tons and above | Up to $1,000 | Up to $1,075 |
The tier gap is worth a conversation. On a ducted system of 2.5 tons or larger, moving from Tier 1 to Tier 2 efficiency changes the discount by $600. The equipment costs more, but often not by $600. This is a calculation worth running before you sign anything, and it's one we'll run with you.
How the ComEd Discount Works
There's no rebate form and no waiting for a check. The discount is applied at the point of sale by a ComEd heat pump-trained contractor. Compass participates in ComEd's Home Heating and Cooling program, so qualification happens on our end.
That designation isn't automatic. Since January 1, 2025, contractors in the program have been required to have 30% of their installers and service technicians complete ComEd's heat pump training in order to offer the discounts at all.
AHRI eligibility
Equipment eligibility is verified through the Air Conditioning, Heating, and Refrigeration Institute. Not every model at a given SEER2 rating qualifies.
Enrolled contractor
The installation must be performed by a contractor enrolled in ComEd's program. Self-installs do not qualify.
Periodic review
Discount amounts and equipment requirements are reviewed by ComEd periodically and can change during the year.
Verify participation and terms
It's worth asking any contractor you're considering whether they still hold the ComEd heat pump-trained designation.
You can verify any contractor's participation, and read ComEd's current terms, at ComEd.com/HomeHC. ComEd also publishes a calculator that estimates savings for all-electric and dual-fuel heat pump conversions.
Nicor Gas: Furnace, Water Heater, and Envelope Rebates
Nicor Gas serves East Dundee and most surrounding communities. Unlike ComEd's instant discount, Nicor rebates are claimed by application after installation.
Heating Equipment
Upgrade | Rebate |
|---|---|
| Furnace, ≥97% AFUE | $225 |
| Furnace, ≥95% AFUE | $150 |
| Furnace ≥97% AFUE bundled with ENERGY STAR smart thermostat | $275 |
| Furnace ≥95% AFUE bundled with ENERGY STAR smart thermostat | $200 |
| Boiler, ≥95% AFUE | $350 |
| Combination boiler - space heating plus domestic hot water | $500 |
| ENERGY STAR smart thermostat on its own | $25 |
| Tankless water heater | $150 |
| Tanked/storage water heater | $150 |
The furnace and thermostat must appear on the same application to receive the bundled amount. Limit one Nicor smart thermostat rebate per household.
Air Sealing, Insulation, and Duct Sealing
This is the part of the Nicor program most homeowners overlook, and the amounts are larger than the equipment rebates.
Upgrade | Rebate |
|---|---|
| Duct sealing | $600 per home |
| Air sealing | $500 per home |
| Attic insulation | $400 per home |
| Foundation sidewall insulation | $200 per home |
| Exterior wall insulation | $150 per home |
| Low-e storm window inserts | $100 per window, up to $1,000 |
| High-performance windows | $100-$125 per window, up to $3,000 |
Air sealing, insulation, duct sealing, and window work must be completed by a program-approved contractor. Attic and wall insulation projects are only eligible after air sealing is complete, so sequence matters. Before-and-after photos are required with the application.
Nicor Deadlines
Equipment must be installed between January 1 and December 31, 2026. Applications must be submitted within 90 days of installation, or by January 31, 2027, whichever comes first.
That 90-day window is the one people miss. A March installation has a June deadline, not a January one.
Where the Real Savings Are
Dual-fuel systems are the clearest example. A heat pump paired with a high-efficiency gas furnace can qualify for a ComEd heat pump discount and a Nicor furnace rebate on the same job.
Smart thermostats can stack too, provided the other requirements are met. Envelope rebates apply on top when duct sealing or insulation is part of the project.
What Changed in 2026
Federal Tax Credits
We want to be direct about this, because outdated information is still circulating widely.
The federal 25C Energy Efficient Home Improvement Credit expired December 31, 2025. Heat pumps, furnaces, and air conditioners installed in 2026 do not qualify for a federal tax credit.
If you completed a qualifying installation in 2025, you may still be able to carry forward unused credit. That's a question for your tax preparer, not for us.
If a contractor quotes you a job that assumes a federal tax credit in 2026, they are working from expired information. Ask them to re-run the numbers.
Illinois HEAR and HOMES: Not Yet Open
Illinois received federal funding for two income-qualified rebate programs: HEAR and HOMES. When operational, HEAR is expected to offer significant amounts toward heat pumps for households at or below area median income thresholds, with the state prioritizing lower-income households in the first phase.
As of this writing, we cannot confirm that Illinois has opened applications. Reports on the program's status conflict, and the launch timeline has moved more than once.
Our advice: don't build your project budget around HEAR. If it opens and you qualify, it's a substantial benefit. Plan on ComEd and Nicor, and treat HEAR as upside. If you'd like, we'll flag you when the status changes — we track this closely because our customers ask.
For current status, the Illinois EPA administers the program.
How We Handle Rebates
We're a heat pump-trained contractor in ComEd's Home Heating and Cooling program, and we work within the Nicor Gas program.
We don't treat rebates as a closing tactic. Some homes and some projects don't qualify for much, and we'll tell you that plainly rather than quoting a headline number you won't receive.
Confirm AHRI eligibility
We confirm AHRI eligibility for the specific equipment combination before you commit, not after.
Apply ComEd discount
The ComEd discount is applied to your invoice at installation.
Prepare Nicor application
We prepare the Nicor application with the invoice detail and model numbers the program requires, and we watch the 90-day clock.
Show the tier math
We'll show you the tier math so you can decide whether stepping up in efficiency makes sense for your home.
Rebate amounts, efficiency requirements, and program deadlines are set by ComEd and Nicor Gas and are subject to change. Figures on this page were verified in July 2026 against ComEd's Home Heating and Cooling program materials and the Nicor Gas Energy Efficiency Program. We confirm current eligibility on every project before installation.
Talk Through Your Project
Every home is different, and rebate eligibility depends on your equipment, your ductwork, your fuel setup, and your utility accounts. A short conversation will tell you more than any page can.
Compass Heating and Air Conditioning Inc.
1051 E. Main St., Suite 106 - East Dundee, IL 60118
