Kentucky Heat Pump Rebates
A geothermal unit qualifies for up to $1,500 from TVA EnergyRight under Kentucky heat pump rebates. Participating Kentucky's Touchstone Energy Cooperatives offer up to $1,000 for air-source upgrades, while other electric utilities pay $400 to $800.
Find the Kentucky rebates for your ZIP code
If JavaScript is off, locate your state in the program table.
Who sends your electric bill?
What are you putting in?
- Largest standard rebate now available
- $1,000 For customers of Jackson Energy Coop Corp and of Cumberland Valley Electric, Inc., among other utilities, from Kentucky's Touchstone Energy Cooperatives
- Geothermal (ground-source) system
- $1,500 TVA EnergyRight Residential Rebates (heat pumps)
- HEAR appliance rebates
- Not yet available Run by EEC. Official page
- HOMES whole-home rebates
- Not open yet Paid on the energy saved by a whole-home upgrade. Official page
- 25C federal tax credit
- Ended No credit for heat pumps installed after 31 December 2025
Kentucky heat pump rebates
Every program serves only customers of its own electric utility, so look at your monthly power bill to learn who your provider is.
| Program | Who can get it | Central heat pump | Ductless mini-split | Heat pump water heater | Geothermal | Status | Apply |
|---|---|---|---|---|---|---|---|
| LG&E and KU Residential Rebates | For customers of Kentucky Utilities Co, Louisville Gas & Electric Co | $400 | $400 | $300 | None | Open | Official page |
| Kentucky Power EnergyAdvantage at Home | Served by Kentucky Power Co | $500 | $400 | $500 | None | Open | Official page |
| Kentucky's Touchstone Energy Cooperatives (EKPC) Heat Pump Rebates | Served by Jackson Energy Coop Corp and of Cumberland Valley Electric, Inc., among other utilities | $1,000 | $500 | $250 | None | Open | Official page |
| TVA EnergyRight Residential Rebates (heat pumps) | For customers of Tennessee Valley Authority and Warren Rural Elec Coop Corp | $800 | $800 | $900 | $1,500 | Open | Official page |
Claiming Kentucky Heat Pump Rebates From Your Utility
Which electric company serves your address determines your application steps, and two programs enforce strict contractor rules.
- East Kentucky Power Cooperative: Before work begins, contact your local participating cooperative to confirm the rebates your branch offers.
- TVA EnergyRight: To qualify for up to $1,500, have a TVA Quality Contractor Network member do the work. After installation, your installer submits the form, and an emailed redemption code lets you claim the payment.
- Kentucky Power: Work with a licensed contractor, then apply via EnergyAdvantage at Home; no home energy assessment is needed.
- LG&E and Kentucky Utilities: The residential rebates site lets you apply with My Account and get $400 back. Guests can file too, with a ZIP code and the utility account number.
Are Kentucky Home Energy Rebates Available Yet?
State-run whole-home and appliance rebates remain closed, and applications are not being accepted at this time. The proposal is with the Department of Energy, and the state energy office is now in its second planning step. Before the application portal opens, state officials must finish additional documents and secure federal approval and funding.
The program intends to help households that need extra support, but income rules have not been published. Email updates from the official state website will let you know once funding opens; you can register there. Heat pumps that go into service after 31 December 2025 no longer get the federal 25C credit under Public Law 119-21.
Kentucky Weatherization and Income-Qualified Upgrades at No Cost
Households with a tight budget can get home improvements at no cost right now through a state housing agency or their utility. Weatherization involves adding insulation and sealing air leaks, so your house needs less electricity to hold heat.
- Weatherization Assistance Program: The Kentucky Housing Corporation helps households earning up to 200 percent of the federal poverty level. A home is eligible as long as the state has not weatherized it in the last 15 years.
- TVA Home Uplift: Customers of participating local power companies who meet the income limit average $10,000 in no-cost home upgrades.
- LG&E and KU WeCare: Customers who qualify get home sealing and no-cost efficiency upgrades straight from their utility.
- CARES Program: Incentives from East Kentucky Power Cooperative go to Kentucky Community Action Agencies and Affordable Housing Organizations for weatherizing member homes.
Electric Cooperatives and Heating Fuel Rules Across Kentucky
Over half of Kentucky households use electricity as their main heat source, and more than a third depend on natural gas. Roughly seven in 100 homes use propane, fuel oil, or kerosene. Kentucky ranks seventh among states in coal production. The heating system you have now matters, since Kentucky Power rebates go only to homes that already heat with electricity.
East Kentucky Power Cooperative provides power to 16 member-owned cooperatives in 89 Kentucky counties. When a home two years old or older swaps out electric furnace, baseboard, or ceiling cable heat, participating cooperatives will pay $1,000. An ENERGY STAR cold-climate heat pump also earns $1,000. This certification means the unit heats reliably in freezing weather. You get $500 when you swap an older heat pump for a new ENERGY STAR model, or when you add a ductless unit.
Common Questions About Kentucky Heat Pump Rebates
Can you still claim the federal heat pump tax credit in 2026?
No. Equipment placed in service in 2026 cannot claim the federal credit. In July 2025, Congress approved the One, Big, Beautiful Bill under 139 Stat. 72, which brought the credit to an early end. The Internal Revenue Service posted Fact Sheet FS-2025-05 on 21 August 2025 confirming that any installation done after 31 December 2025 is not eligible.
Who qualifies for the appliance rebate program from Kentucky Utilities and LG&E?
Louisville Gas and Electric or Kentucky Utilities residential electric customers qualify once they install ENERGY STAR certified equipment. Ductless heat pumps and standard air-source heat pumps each earn $400, and $300 goes to an ENERGY STAR heat pump water heater. Louisville Gas and Electric natural gas customers can also receive $250 for a natural gas furnace.
What efficiency ratings do Kentucky Power and TVA heat pump rebates require?
Rebate tiers are based on SEER2, the cooling efficiency rating shown on the yellow energy label. Across 317 Kentucky ZIP codes in western and south-central areas, TVA EnergyRight pays $800 at 17 SEER2; below that, $500 down to 15 SEER2. Kentucky Power offers $500 at 16.2 SEER2, then $400 at 15.2 SEER2, with $200 for single-zone ductless systems.
Do rebates exist for rural electric cooperatives and heat pump water heaters?
Heat pump water heaters qualify for a $900 coupon from TVA EnergyRight, no more than two per address, or for $500 from Kentucky Power. East Kentucky Power Cooperative members in the program get $250 on an ENERGY STAR water heater, or $750 on a federal-minimum heat pump retrofit. South Kentucky, Cumberland Valley, Big Sandy, Jackson Energy, Nolin, Salt River, Owen Electric, and Blue Grass Energy are among the member cooperatives.
Get Kentucky installer quotes with the rebates taken off
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.