Tennessee Heat Pump Rebates
Through TVA EnergyRight, Tennessee heat pump rebates pay $800 on standard units and $1,500 on geothermal systems. Households that meet the income limits can also get free energy upgrades averaging $10,000 through the TVA Home Uplift program.
Find the Tennessee rebates for your ZIP code
If JavaScript is off, look for your state in the program table.
Who sends your electric bill?
What are you putting in?
- Largest open standard rebate
- $800 TVA EnergyRight Residential Rebates (heat pumps), for homes whose power comes from Tennessee Valley Authority, Nashville Electric Service and other utilities
- Geothermal (ground-source) system
- $1,500 TVA EnergyRight Residential Rebates (heat pumps)
- HEAR appliance rebates
- Has not launched yet Run by TDEC. Official page
- HOMES whole-home rebates
- Not open yet Paid on the energy saved by a whole-home upgrade. Official page
- The federal 25C tax credit
- Ended No credit for heat pumps installed after 31 December 2025
Rebates for heat pumps in Tennessee
Every program serves households that buy power from Tennessee Valley Authority local power companies. There is one track for standard purchases and another for income-qualified households.
| Program | Who can get it | Central heat pump | Ductless mini-split | Heat pump water heater | Geothermal | Status | Apply |
|---|---|---|---|---|---|---|---|
| TVA EnergyRight Residential Rebates (heat pumps) | Served by Tennessee Valley Authority, Nashville Electric Service and others | $800 | $800 | None | $1,500 | Open | Official page |
| TVA EnergyRight Heat Pump Water Heater Retail Coupon | Served by Tennessee Valley Authority, Nashville Electric Service and others | None | None | $900 | None | Open | Official page |
| TVA Home Uplift | Served by Tennessee Valley Authority, Nashville Electric Service and others | An average of $10,000 in free upgrades (income-qualified) | An average of $10,000 in free upgrades (income-qualified) | None | None | Open | Official page |
Claiming Tennessee Heat Pump Rebates Through TVA EnergyRight
If a local power company serves your home, you can get cash back through TVA EnergyRight. How much you get depends on SEER2, the cooling efficiency rating shown on the label of the equipment. Units rated 17 SEER2 or higher, both ducted and ductless mini splits, pay $800. Units rated 15 to 16.99 SEER2 pay $500. A geothermal system heats and cools your home using steady underground temperatures, and it earns a $1,500 rebate.
To keep your rebate, follow three steps that TVA EnergyRight requires:
- Only work from a Quality Contractor Network member qualifies, so hire one before installation. Installers from outside the network do not count.
- Have your contractor finish the upgrade first. Once installation is done, they should submit the rebate application.
- Then watch your email for a redemption code you use to claim your money.
There is also a $900 heat pump water heater coupon to download for Lowe's or Home Depot, with no contractor needed.
State Rebate Status and Upgrades for Lower Incomes
Homeowners with lower incomes can apply today for free improvements averaging $10,000 through TVA Home Uplift. The program covers repairs or replacements for heating and cooling, plus water heaters and insulation, in qualifying single-family homes or post-1976 manufactured homes. Some power companies have not joined, but Knoxville Utilities Board puts $1 million a year toward the program for its customers.
Households cannot yet use the separate federal Home Energy Rebates. In January 2025 the state got a conditional award, but it must still complete federal approval. Heat pumps will get up to $8,000 and water heaters up to $1,750 from appliance rebates, which will run through the Quality Contractor Network when they launch. The appliance rebates will go to households earning under 150% of area median income, which is the midpoint income in your county. Retrofits lowering energy use by at least 20% will also earn $2,000 to $8,000 under a whole-home program.
Tennessee Weatherization and Local Heating Rules
Free help is available to low-income residents in all 95 counties through the Weatherization Assistance Program, which the Tennessee Housing Development Agency runs. Local community agencies put older residents, residents with disabilities, and families with children first. These home improvements average about $16,000 per house in Memphis.
Federal energy data shows roughly two-thirds of homes in the state already heat mainly with electricity. Across this seven-state utility region, heat pumps work efficiently in climates that are mild or moderate. Equipment installed after December 31, 2025 no longer qualifies for the federal 25C tax credit under Public Law 119-21. Heat pump rebates can still be paired with a no-cost home energy evaluation plus a $300 rebate for duct sealing.
Common Questions About Tennessee Heat Pump Rebates
In Tennessee, what other rebates for heating and cooling are open right now?
TVA EnergyRight also covers central air conditioning, paying $200 to $400 when a network contractor installs it. Your local power company may also finance the upgrade with $0 down, so you can spread the upfront cost. Local power distributors serve the 788 Tennessee ZIP codes covered by these offers across the state.
Can you still get the federal heat pump tax credit in 2026?
No, the credit ended early when Congress passed Public Law 119-21, 139 Stat. 72. The termination was confirmed by the Internal Revenue Service in Fact Sheet FS-2025-05, issued August 21, 2025. A federal tax credit will not apply to any heat pump placed in service in 2026.
Does Tennessee still have state rebates for heat pumps on the way?
Yes, the federal allocations Tennessee holds are $83,390,060 for appliance rebates plus $83,708,676 for whole-home retrofits. Eligible income tiers will receive appliance rebates covering 50% to 100% of project costs, with a limit of $14,000 per building. Joining the state energy office email list lets homeowners get a notice once applications open.
What share of a heat pump project's cost can rebates cover?
Your home and equipment determine the total install price, so rebates from state programs are set as a share of project cost. When the whole-home rebate program opens, projects that cut energy use by at least 35% can get back 50% to 80% of costs. Once it opens, lower-income households will get up to $4,000 for projects saving 20% to 34%, and higher-income households up to $2,000.
Get Tennessee 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.