Deals Abound for New AC Systems

The biggest incentives are being offered by utility companies and government groups. "[Utility] companies know that having an old, inefficient air conditioner on the power grid wastes a lot of energy," explains Rozanne Weissman, a spokeswoman for the Alliance to Save Energy. Old units require extra energy production during an already high-demand season, increasing the likelihood of rolling and emergency blackouts. (That's also why many programs for window air conditioners require you to turn in your old unit.)

So what type of savings are we talking about here? Thirty percent or more. In fact, depending on where you live and the kind of unit you're buying, you may be eligible for multiple discounts. A New Jersey resident buying a $1,000 15-SEER Aire-Flo 2AC14 central air-conditioner unit, for example, could earn $400 in rebates from the state's Clean Energy Program and save an additional $300 thanks to a federal tax credit. Total savings: $700, or 70%. (For more on snagging the tax credit, click here.)

To find rebates in your area, check with both your utility company and your state's energy department.

It's no simple selection — those criteria even knock out a few Energy Star models, says Harvey Sachs, director of building programs for the American Council for an Energy Efficient Economy. To find a system that fits the guidelines, talk to your contractor, or use Energy Star guidelines to decipher the Consortium for Energy Efficiency's product directory.

More savings can be had at the local level. Here are some of the biggest rebates on the market this summer:

Here are some of the biggest rebates on the market this summer: