Focus on Energy Rebates
For 2026, Focus on Energy rebates can take as much as $700 off the price of an eligible Wisconsin air heat pump, or up to $900 when your household qualifies by income. A certified geothermal heat pump is worth a $1,000 rebate if your home has natural gas service, or $750 without it. To count, the equipment has to be purchased and installed sometime between January 1 and December 31, 2026.
Check what your address gets in Wisconsin
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Who sends your electric bill?
What are you putting in?
- Heat pump rebate (any income)
- Up to $700 $700 standard instant discount ($150 propane replacement)
- If your income qualifies
- Up to $900 $900 income-qualified instant discount ($350 propane replacement)
- Federal 25C tax credit
- Ended No credit for heat pumps installed after 31 December 2025
Apply and check the current rules on the official page: Focus on Energy Residential Heating & Cooling – Heat Pump Instant Discounts and Geothermal Rebates
Focus on Energy Rebates amounts
| What you install | Rebate | Who | Conditions |
|---|---|---|---|
| Heat Pumps Tier 4 (SEER2 16.0 and HSPF2 10.0) | $700 standard instant discount ($150 propane replacement) | Any income | Trade Ally contractor buying through a participating distributor; Tier 1 $400, Tier 2 $500, Tier 3 $600 |
| Heat Pumps Tier 4 (SEER2 16.0 and HSPF2 10.0) | $900 income-qualified instant discount ($350 propane replacement) | Income-qualified | income-qualified approval (80% or 150% AMI tiers per Focus calculator); Tier 1 $600, Tier 2 $700, Tier 3 $800 |
| Certified Geothermal Heat Pump (with natural gas service) | $1,000 rebate ($750 with no natural gas service) | Any income | application within 60 days of installation |
| Heat Pump Water Heater (< 120 gallons, >= 3.3 UEF) | Minimum $300 instant discount | Any income | through a Trade Ally contractor working with a participating distributor |
What Is Focus on Energy?
Focus on Energy is Wisconsin's statewide energy efficiency program, run by the state's utilities. For homeowners, it offers instant discounts and rebates covering heat pumps, geothermal systems, water heaters that use heat pump technology, and smart thermostats.
With an instant discount, no check ever shows up in your mailbox. The savings appear right on your installer's invoice, and you fill out nothing. A rebate, like the geothermal one, gets paid after you apply for it.
Who Is Eligible?
The utilities that serve your home have to participate in Focus on Energy. Unless a specific offer says differently, you need service from both an electric utility and a natural gas utility that take part.
On top of that, these rules apply:
- You have to own the property or hold the electric or gas account.
- A single-family home qualifies, and so does a building that contains three units or fewer.
- Buildings containing four or more residences can still qualify as long as the equipment serves just one home.
- Newly built homes are excluded. The equipment you install has to take over for an older unit that was already doing that work.
- The purchase and the installation both have to fall inside the 2026 calendar year, from January 1 through December 31.
Heat Pump Discount Amounts
Air heat pumps fall into four tiers based on two efficiency ratings. SEER2 tells you how well the unit cools, and HSPF2 tells you how well it heats. The higher the numbers, the more efficient the unit and the bigger the discount. Your installer can confirm which tier any given model lands in.
- Tier 1, SEER2 15.2, HSPF2 8.1: $400 standard, $600 income-qualified
- Tier 2, SEER2 15.2, HSPF2 8.5: $500 standard, $700 income-qualified
- Tier 3, SEER2 16.0, HSPF2 9.0: $600 standard, $800 income-qualified
- Tier 4, SEER2 16.0, HSPF2 10.0: $700 standard, $900 income-qualified
If the old heating system ran on propane, though, the amount drops sharply. Standard households then see $100 to $150, and income-qualified households see $300 to $350. At Tier 4, that comes to $150 for standard and $350 for income-qualified.
There is a yearly limit on how much one customer can receive, but it is set far above anything a household project would reach, so you don't need to plan around it.
How to Get the Discount
A Trade Ally contractor, an installer signed up with Focus on Energy, is the channel these discounts go through. The money travels from a participating distributor to the contractor and finally onto your invoice. That is why picking the installer matters just as much as picking the unit.
- Make sure your utility participates in Focus on Energy, since the offers hinge on it.
- If your income might qualify, get income-qualified approval before the work begins. An Income Specialist gives you a confirmation number.
- Hire a Trade Ally contractor who buys through a participating distributor, and pick a model fitting one of the tier levels.
- With an air heat pump, the instant discount shows up right on the invoice. Geothermal systems and thermostats work differently: you submit an application, online or by PDF, no later than 60 days after installation.
Applications need to reach Focus on Energy by January 31, 2027. Once approved, checks arrive 8 to 10 weeks later.
Added Support for Income-Qualified Households
Households approved as income-qualified get an extra $200 at every heat pump tier. Eligibility rests on area median income, the income level sitting right in the middle for households where you live. Focus on Energy works with two levels, 80% and 150% of that number, and uses a calculator of its own to figure out where you fall.
An Income Specialist gets back to you within three business days. You cannot add the approval later, because retroactive income-qualified rebates do not exist.
If your household earns under 150% of area median income, you can also turn to the federal Home Energy Rebates program, administered in Wisconsin by Focus on Energy. It can pay up to $8,000 toward a heat pump, on top of the Focus on Energy discount. One catch: since September 1, 2026, retail coupons and rebates under this program aren't accepted for equipment that replaces a gas, oil or propane appliance, so ask your installer whether your project still qualifies.
Geothermal, Water Heater, and Thermostat Offers
A geothermal unit that is certified brings a $1,000 rebate when the house has natural gas service, and $750 when it does not. You have 60 days from installation to apply. For a packaged terminal heat pump, the type common in apartments, the payment is $120.
Water heaters account for nearly 20% of a typical home's energy use. Heat pump water heaters come with an instant discount worth $300 or more, and there is no stated cap. To qualify, the tank must hold under 120 gallons and reach a UEF of at least 3.3. That figure, UEF, is the efficiency score printed on the label. Households below the 150% area-median-income line may also claim a federal rebate worth as much as $1,750.
An ENERGY STAR smart thermostat earns you $50 back.
Common Questions
Is Focus on Energy legit?
Yes. Wisconsin's utilities officially back the program, and its residential heating and cooling offers remain open for 2026.
What changed with Focus on Energy rebates in Wisconsin for 2026?
Only gear purchased and installed during the 2026 calendar year counts. On the federal Home Energy Rebates side, retail coupons and rebates stopped being accepted for equipment replacing a fossil fuel appliance as of September 1, 2026.
Do energy efficiency tax credits still exist for 2026?
For most home upgrades, no. The federal credit for energy efficient home improvements no longer applies to equipment that goes into service after December 31, 2025. Public Law 119-21, which was signed on July 4, 2025, ended it, a change IRS fact sheet FS-2025-05 spells out.
Who could claim the home energy tax credit?
The credit covered qualifying upgrades that were installed and working by December 31, 2025. If your heat pump goes in during 2026, it won't qualify, so the Focus on Energy discounts and, for eligible households, the federal Home Energy Rebates are where your savings will come from.
Compare Local Installer Quotes With Your Instant Discount Included
Most rebates on this page are paid through the installer or need the installer's paperwork, so the quote is where the money is settled. Tell us the ZIP code and what you want installed, and installers who work with these programs send a written price with the rebates taken off.
Related pages
Every heat pump rebate in Wisconsin
The other utility and state programs in Wisconsin, side by side.
Heat pump cost after rebates
Typical installed prices with the largest rebate taken off.