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CoServ Electric is a member-owned cooperative serving Denton County and parts of Collin, Wise, and Grayson counties in the DFW suburbs. CoServ offers up to $500 for qualifying heat pump installations. Unlike Oncor (deregulated), CoServ is your single electric provider — no REP shopping needed.
2026 Update: The federal 25C heat pump tax credit expired December 31, 2025. CoServ members rely on the $500 cooperative rebate as the primary incentive.
CoServ is different from the big Texas delivery utilities. As a member-owned cooperative, CoServ operates for the benefit of its members — not shareholders. This structure affects your electricity rates, rebate programs, and how you interact with your utility.
CoServ offers up to $500 for qualifying heat pump installations. The rebate helps offset the cost of upgrading to an energy-efficient heat pump system.
Purchase and install qualifying ENERGY STAR heat pump
Collect invoice, AHRI certificate, and contractor license info
Submit rebate application online at coserv.com or by mail
CoServ reviews application (typically 4-6 weeks)
Rebate check mailed or credited to account
DFW suburb pricing for Denton County area. Actual costs vary.
CoServ and Oncor serve adjacent areas in the DFW suburbs. Many Denton County homeowners are unsure which utility serves them. The differences affect your rates, rebate access, and how you shop for electricity.
| Factor | CoServ Electric | Oncor |
|---|---|---|
| Type | Member-owned cooperative | Investor-owned delivery utility |
| Market Structure | Regulated — CoServ is your single provider | Deregulated — choose your REP separately |
| Service Area | Denton County, parts of Collin/Wise/Grayson | DFW metro, Waco, Midland-Odessa, Tyler, Wichita Falls |
| Electric Rate | ~$0.12-$0.14/kWh (fixed cooperative rate) | ~$0.09-$0.18/kWh (varies by REP plan choice) |
| HP Rebate | Up to $500 | Up to $600 (Take a Load Off Texas) |
| Rate Shopping | Not applicable — one provider | Shop Power to Choose for competitive rates |
| Member Benefits | Capital credits returned to members, community programs | No member benefits (investor-owned) |
Check your electric bill. If it says CoServ Electric, you are a CoServ member. If it shows a REP name (TXU Energy, Reliant, etc.) with Oncor delivery charges, you are in Oncor territory. You can also call CoServ at (940) 321-7800 or enter your address on coserv.com to verify. Some neighborhoods in Denton County are split between CoServ and Oncor — your specific street address determines your provider.
CoServ primarily serves Denton County with extensions into parts of Collin, Wise, and Grayson counties. The service area includes many of the fastest-growing communities in the DFW metroplex.
Denton, Corinth, Argyle, Aubrey, Bartonville, Copper Canyon, Cross Roads, Double Oak, Flower Mound (parts), Hickory Creek, Highland Village (parts), Justin, Krugerville, Lake Dallas, Lantana, Little Elm (parts), Northlake, Oak Point, Pilot Point, Ponder, Prosper (parts), Providence Village, Robson Ranch, Sanger, Shady Shores
Celina (parts), Prosper (parts), Princeton (parts)
Boyd, Decatur (parts), Rhome (parts)
Gunter, Tioga, Collinsville
CoServ's service area is expanding as DFW suburbs grow northward. New developments in Aubrey, Celina, and Providence Village are often served by CoServ. If you are buying or building in northern Denton County, verify your utility provider before closing — it affects your rate structure and rebate eligibility.
CoServ's cooperative rate structure means predictable electricity costs — an advantage for projecting heat pump operating expenses.
Unlike Oncor territory where rates fluctuate with your REP contract (and can spike during peak seasons), CoServ rates are set by the cooperative board and remain relatively stable. This makes heat pump operating cost projections more reliable. You can confidently estimate your annual HVAC costs without worrying about rate plan expirations or variable rate surprises.
At CoServ's $0.13/kWh average rate and TX natural gas at $1.10/therm, a heat pump (COP 3.5) costs roughly $460/year for heating a 2,500 sq ft home. A gas furnace (92% AFUE) costs roughly $990/year. The heat pump saves approximately $530/year on heating alone. Add cooling savings (more efficient than a standard AC), and total annual savings range from $600-$900.
CoServ territory shares the North Texas / Central climate zone with DFW. Denton County homes need systems that handle summer heat (100F) and occasional winter cold (20F). Here are the top recommendations.
Premium variable-speed. Excellent for DFW suburbs with space for outdoor unit placement. Greenspeed Intelligence compressor.
Best value for DFW suburbs. Two-stage compressor. Strong contractor availability across Denton County. Made in Houston (Daikin subsidiary).
Lennox HQ in Richardson (20 miles from Denton). Best local parts and support. Variable-capacity compressor with excellent cold-weather performance.
Variable-speed with proven reliability. ComfortLink II communicating technology. Strong dealer network in the DFW suburbs.
The federal Section 25C energy efficiency tax credit expired December 31, 2025 under the One Big Beautiful Bill Act. There is no federal tax credit for residential heat pump purchases in 2026. Texas has no state income tax, so state credits are not possible. The CoServ $500 rebate is the primary incentive for Denton County homeowners.
Common questions about CoServ heat pump rebates and service.
Take a Load Off Texas program. Up to $600. DFW core metro.
Read guideAll TX utility rebates: Oncor, CenterPoint, Austin Energy, CPS.
Read guideStatewide pricing: Houston, Dallas, Austin, San Antonio.
Read guideTDLR licensing, Manual J sizing, contractor red flags.
Read guideDFW pricing, Oncor $600 rebate, dual-fuel guide.
Read guideGas at $1.10/therm vs heat pump. Honest ROI at TX rates.
Read guideLast updated: February 2026. CoServ rates, rebate amounts, and program details may change. Contact CoServ Electric at (940) 321-7800 or visit coserv.com for current information.
NuWatt Energy works with licensed HVAC contractors in Denton County and the DFW suburbs. Get a free assessment, proper Manual J sizing, and help maximizing your CoServ rebate.