Making The Transition To High-Efficiency VRF Systems To Create A Greener Future

Real estate is responsible for 40% of global greenhouse gas emissions. And since many commercial buildings are dependent on energy sources that use fossil fuels, owners are feeling pressure to improve the sustainability of their properties to reduce this impact.

One of the challenges building owners might face when they move to adopt more energy-efficient systems is in finding financing. In an effort to expedite the transition to more energy-efficient sources, the Inflation Reduction Act of 2022 provides tax credits and rebates for owners using clean energy sources. Congress is planning to provide Texas with $690M in funding to help streamline clean energy initiatives.

HVAC equipment manufacturer Carrier has seen a transition to more of an energy-efficient approach among commercial clients over the past few years, including in Texas, where the company continues to grow its presence. There are many rebates and financing options available on the market to help local building owners shoulder the cost of going green, according to James Momperousse, ductless and variable refrigerant flow, or VRF, energy sales manager at Carrier.

“There are rebates and financing options available through the Carrier dealer network, coupled with federal as well as local incentives related to energy-efficient models, which can present property owners with a win-win of sustainable, cost-effective heating and cooling solutions in Texas and other locations,”  Momperousse said.

Momperousse recommended that developers check with utility providers and equipment distributors for potential financing options or resources to help fund high-efficiency equipment and installs. Also, while government grants and tax credits may be applicable, developers should verify qualifications with a tax professional, he said.

The Inflation Reduction Act provides funding and government incentives through tax credits, grants and rebates. Overall, this helps lower the capital cost of high-efficiency equipment. The IRA is the largest climate investment in U.S. history, with $370B dedicated to achieving decarbonization goals.

Carrier’s new EcoHome Program helps match consumers with IRA-eligible, energy-efficient HVAC solutions. Designed to help property owners, builders and HVAC contractors best utilize the long-term tax credits available, the program also helps consumers further maximize savings while improving sustainability. The program offers special low-rate financing options to amplify cost savings available from federal programs and Carrier Cool Cash promotions — up to $3,750 in certain instances, Momperousse said.

Carrier Director of Regulatory Affairs Jason Thomas said that the IRA is something that can be of particular interest to property owners, builders and HVAC contractors. The legislation includes a number of incentives for the installation of high-efficiency property heating and cooling products, including Carrier high-efficiency systems.

“For the building sector, this creates an opportunity to reduce energy consumption and related costs, while supporting federal and state clean energy goals,” Thomas said.

The most popular of the tax credits to help support clean energy goals is the 25C, designed for property owners providing up to $3,200 in tax savings. 

However, there are more credits designed for builders, owners and developers, such as the 179D Commercial Buildings Energy-Efficiency Tax Deduction. It gives tax credits to building owners who install energy-efficient systems that can increase efficiency by a minimum of 25%.

Another credit is 45L for Zero-Energy Ready Property, an IRA-amended program that provides up to $5K in tax credits to eligible energy-efficient multifamily properties that are new construction.

The Home Energy Rebate Program provides $400K in rebates for energy-efficient retrofit multifamily buildings. Carrier Enterprise's Business Development Manager of VRF and Ductless Adam Keith said this program can be beneficial to local building owners and developers in Dallas because of the amount of funding potentially available.

“The Home Energy Rebate Program will be a game-changer in incentivizing commercial building owners and developers to use more energy-efficiency solutions in Dallas,” Keith said. “Texas is projected to receive $690M from this program, which is the most funding of any state.”

Keith and the Carrier Enterprise team in Dallas are helping local developers close deals utilizing the company’s VRF systems and Commercial Property Assessed Clean Energy financing to lower their capital stack. 

“With Texas being one of the top energy-consuming states, we have high-efficiency products to help local developers save money upfront and on the back end,” Keith said. “Developers can use the C-PACE program to help get the low-cost, long-term financing needed to complete commercial projects requiring energy-efficiency upgrades.”

Carrier is committed to providing products that the market demands, including clean energy solutions. The company understands the long-term benefits down the line, particularly for commercial building owners. Momperousse mentioned that in addition to Carrier offering high-efficiency products to commercial building owners and developers, the company also works with electrical providers connecting them with their distribution network to understand available financial incentives.

“Not only do we provide high-efficiency products to save on energy costs, but our team can also connect building owners and developers with electrical providers to help them take advantage of available funding,” Momperousse said. 

The end goal of having high-efficiency HVAC systems, such as VRF, is to help decarbonize buildings while still providing a quality energy source. 

Carrier provides different options to recover heat and move it to different zones of the building to help keep things running efficiently.

“Our high-efficiency VRF solutions can assist in reducing a building’s carbon footprint through savings in electrical consumption,” Momperousse said. “VRFs, coupled with building controls, can ensure maximum occupancy comfort and optimize energy usage not only in Texas [but] across the nation.” 

This article was produced in collaboration between Studio B and Carrier. Bisnow news staff was not involved in the production of this content. 

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.