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Save up to $960/year vs natural gas heating. TX Utility Rebates (vary by provider) rebate up to $600 + $1,200 Austin Energy rebate.
Estimated Savings
$960/yr
vs natural gas
$600
TX Utility Rebates (vary by provider)
$1,200
Austin Energy
~18 yrs
estimated
Austin, Texas homeowners switching from natural gas to a heat pump can save approximately $960 per year on heating costs. Austin is served by Austin Energy, a municipal utility charging $0.12/kWh. A heat pump replaces both your furnace and air conditioner, providing year-round heating and cooling at a fraction of the cost.
Cooling-dominant market (80/20 cooling/heating split). 85% deregulated electricity via ERCOT. Standard heat pumps replace both AC and gas furnace as a single system. SEER2 16+ recommended for Gulf Coast humidity. Both standard and cold-climate heat pump models work well in Austin. We recommend Daikin FIT and Carrier Infinity 24 for this area.
The TX Utility Rebates (vary by provider) rebate covers up to $600 of installation costs. Austin Energy adds another $1,200 utility rebate on top. The federal 25C heat pump tax credit expired at the end of 2025, making these state and utility incentives more important than ever.
NuWatt Energy installs heat pumps directly in Austin — no subcontractors. We handle the full process: sizing assessment, equipment selection, installation, and all TX Utility Rebates (vary by provider) rebate applications. Pair with solar to reduce your heat pump operating costs to near zero.
Expired December 31, 2025. Previously 30% up to $2,000.
Texas utility rebates vary by provider: Oncor up to $600/unit, Austin Energy ~$3,000 whole-home, CPS Energy $100-275/ton. No single statewide program.
Heat pump rebate from your local utility, Austin Energy. Can be stacked with TX Utility Rebates (vary by provider).
Municipal Utility · $0.12/kWh
Heat Pump Rebate
$1,200
Battery Rebate
$4,050
EV Charger Rebate
$1,200
Additional Programs
Cooling-dominant market (80/20 cooling/heating split). 85% deregulated electricity via ERCOT. Standard heat pumps replace both AC and gas furnace as a single system. SEER2 16+ recommended for Gulf Coast humidity.
+ 66 more towns in Texas