Texas Heat Pump Rebates
Right now, Texas heat pump rebates reach up to $3,500 under the Southwestern Electric Power Company HVAC Incentive Program, which is open. The statewide rebates, worth up to $14,000, remain in planning, and other local electric utilities have smaller discounts open now.
Find the Texas rebates for your ZIP code
If JavaScript is off, locate your state in the table of programs.
Who sends your electric bill?
What are you putting in?
- Largest standard rebate available now
- $3,500 Texas rebates and SWEPCO HVAC Incentive Program, available to Southwestern Electric Power Co customers
- HEAR appliance rebates
- Not yet available Run by SECO. 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 on heat pumps in Texas
Check the program that serves your home address; each row matches one statewide agency, municipal provider, or electric delivery utility.
| Program | Who can get it | Central heat pump | Ductless mini-split | Heat pump water heater | Status | Apply |
|---|---|---|---|---|---|---|
| Home Energy Efficiency Program from Oncor Take A Load Off, Texas (heating and cooling) | Oncor Electric Delivery customers | The project costs may be partly or fully covered by incentives | None | None | Paused | Official page |
| Oncor Low-Income Weatherization Program | Oncor Electric Delivery customers | None | None | None | Paused | Official page |
| CenterPoint Energy Houston Electric HVAC System Replacement Incentives | CenterPoint Energy Houston Electric customers | Incentives begin at $200 and can go higher, based on your installation | Start at $200 | None | Open | Official page |
| AEP Texas Residential Standard Offer Program | AEP Texas customers | Paid to your contractor, set per job | None | None | Open | Official page |
| TNMP Residential and Hard-to-Reach Standard Offer Programs | Texas-New Mexico Power customers | Paid to your contractor, set per job | None | Paid to your contractor, set per job | Open | Official page |
| HVAC Distributor Program from Entergy Texas (2026 Distributed Products HVAC Program) | Served by Entergy Texas Inc. | $80 (1 ton, 15.2-15.9 SEER2) to $1,080 (4.5 tons, 21.0+ SEER2) | None | None | Open | Official page |
| SWEPCO HVAC Incentive Program and Texas rebates | Served by Southwestern Electric Power Co | Up to $3,500 for a qualifying unit | None | $1,650/unit | Open | Official page |
| Texas Residential Solutions Program from El Paso Electric (Refrigerated Cooling and HPWH rebates) | Served by El Paso Electric Co | $93.00 (<15,000 BTUh) to $370.00 (54,000-64,999 BTUh) | None | $300/unit | Open | Official page |
| Heat Pump Water Heater Rebate plus Air Conditioning / Heat Pump Rebates from Austin Energy | Served by Austin Energy | $950 | None | $1,000 | Open | Official page |
| STEP HVAC Rebates from CPS Energy (Ductless Mini-Split Heat Pumps and Central Heat Pumps) | Served by City of San Antonio | $310/cooling ton (Tier 1 $115/cooling ton) | $310/cooling ton | None | Open | Official page |
Claiming Texas Heat Pump Rebates Through Your Utility
The electric delivery company runs efficiency programs across much of the state, paying approved contractors rather than homeowners. For instance, a qualifying heat pump put in by an approved installer earns up to $3,500 from Southwestern Electric Power Company. CenterPoint Energy incentives begin at $200 for a system rated at least 15.2 SEER2, the score for cooling efficiency shown on the equipment label.
Take three steps to make sure your payment is not lost:
- Before any work starts, pick a participating contractor from your utility directory, because quotes from outside installers are rejected by most programs.
- Since utilities such as CenterPoint Energy pay the contractor directly, ask the installer to take the incentive off your invoice.
- After installation, keep an eye on filing deadlines; Austin Energy gives its contractors 90 days to file for rebates of $650 to $950.
All installations of equipment and all distributor paperwork in Entergy Texas territory must be done by December 1.
Statewide Home Energy Rebates Are Still in Planning
Texas received $690 million from the federal Department of Energy for two new programs, paid via the State Energy Conservation Office. Homeowners cannot use either program yet, according to the August 21, 2026 status update. Income-qualified households will receive up to $14,000 per household from the Home Electrification and Appliance Rebate Program once approval comes. All income levels will qualify under the Home Efficiency Rebates Program, which will pay based on expected energy savings, up to $8,000.
In April 2026, the state brought in APTIM Federal Services LLC to design both offers. Contractors have not yet been approved for these state funds, so sign up for the agency mailing list to hear about the launch.
Utility Help for Lower Incomes and Free Weatherization
If your household is on a tight budget, you can apply today for free upgrades or larger utility payouts through local programs. The Weatherization Assistance Program is funded by TDHCA (Texas Department of Housing and Community Affairs), which uses 21 local agencies to cover all 254 Texas counties. This effort of $7.6 million helps households earning no more than 200 percent of Federal Poverty Income Guidelines.
Some electric utilities give extra help as well to customers who qualify:
- For income-qualified households, El Paso Electric raises the rebate for early heat pump retirement from $370 to $476.
- Lower-income homes can use a Hard-to-Reach program from Texas-New Mexico Power through contractors who are enrolled.
- Heating and cooling upgrades at low or no cost are available from Oncor at 200 percent of poverty guidelines, but 2026 funds are gone.
Rules for the Electric Grid and Federal Tax Credit Changes
Roughly six in ten Texas households use electricity as their main heat source, and air conditioning is in nearly every home. Serving 90 percent of the electric load, the state grid runs on its own. Where electricity is deregulated, your rebate is paid by the wires company owning the power lines, not by your retail billing company.
Applying early in spring is wise for homeowners, since utility budgets often run dry. Oncor, for example, spent all of its 2026 heating and cooling funds, with updates coming in January 2027. Federally, the Section 25C tax credit no longer applies: Public Law 119-21 ended it for equipment put in service after December 31, 2025.
Common Questions About Texas Heat Pump Rebates
Will the federal heat pump tax credit still be there in 2026?
No. A heat pump installed in 2026 does not qualify for the federal credit. Under the One, Big, Beautiful Bill, passed by Congress on July 4, 2025, the incentive no longer exists after 2025. Nothing installed after 2025 qualifies, per Internal Revenue Service Fact Sheet FS-2025-05, which was issued on August 21, 2025.
How can I get a heat pump in Texas at low or no cost?
Complete system change-outs through approved contractors are covered by the AEP Texas Residential Standard Offer Program, which serves South, Central, and West Texas. In cities such as Corpus Christi, Laredo, and Abilene, most measures in that program may come at little or no cost. Texas households qualifying for assistance can also get added cost-free efficiency work from Xcel Energy through independent service providers.
For 2026, what are the details of the energy rebate program in Texas?
A community event on October 20, 2026 was held by the State Energy Conservation Office, which also takes public comments until the end of October. In San Antonio, CPS Energy will pay $90 to $310 per cooling ton; the cooling ton is a standard way to measure system cooling capacity. Through distributors, Entergy Texas pays $80 to $1,080; if the job replaces hard-wired electric resistance heat, the heat pump incentive is tripled.
Can a heat pump water heater also earn me a rebate in Texas?
Yes. When you replace an electric water heater with an ENERGY STAR heat pump model, three Texas utilities pay cash rebates. For tanks of 40 gallons or more that qualify, Austin Energy pays $1,000, while the Southwestern Electric Power Company rebate comes to $1,650 per unit. A tank under 55 gallons, installed by a licensed plumber, earns $300 from El Paso Electric.
Get Texas 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.