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Get a Free QuoteThe $2,000 federal heat pump credit is gone. But Texas utility rebates up to $3,000 are still available. NuWatt is a licensed TX HVAC contractor that right-sizes heat pumps for Texas heat, humidity, and your specific utility territory.
Section 25C expired December 31, 2025. If your HVAC contractor is still quoting a $2,000 federal credit, they are either uninformed or counting on you not checking.
Section 25C — the $2,000 energy efficient home improvement credit for heat pumps — expired December 31, 2025 under the OBBBA. Your federal credit for a heat pump purchase in 2026 is $0.
Texas has no state income tax, so no state-level tax credit is possible either. Your only incentives are utility-specific rebates.
Texas utility rebates are active and funded in 2026: Austin Energy up to ~$3,000, Oncor up to $600, CenterPoint up to $500, CPS Energy $100–$275/ton. These are real dollars off your install.
NuWatt files all utility rebate paperwork as part of our installation service — no extra charge.
A high-efficiency heat pump replaces both your AC and your gas furnace. In TX, where 80% of your HVAC cost is cooling, upgrading from a 10-SEER AC to a 20-SEER2 heat pump can cut cooling bills by 40%.
Annual savings of $400–$800 mean the system pays for itself through operating cost reduction — no tax credit needed.
Texas has no statewide heat pump rebate. Your incentive depends entirely on which utility delivers your electricity. NuWatt knows every program and files your rebate paperwork.
Dallas-Fort Worth, Waco, Midland-Odessa
Take a Load Off Texas program: $300/unit for ENERGY STAR heat pumps, up to $600 for two units.
Greater Houston
Standard Offer Program (SOP): up to $500 per qualifying ENERGY STAR heat pump. Separate $75 smart thermostat rebate available.
City of Austin
Power Saver program: ~$1,300 for qualifying central heat pump + additional for duct sealing, insulation, and smart thermostat. Income-qualified may receive more.
San Antonio / Bexar County
Casa Verde program: $100/ton (SEER2 15.2+) or $275/ton (SEER2 16+). Up to 5-ton system = max ~$1,375. Low-income weatherization available.
South TX, Corpus Christi, McAllen
No confirmed heat pump rebate program as of March 2026. AEP Texas focuses on low-income weatherization assistance.
We're not a big-box store. We're not a lead generation website. We are a licensed Texas HVAC contractor that understands TX heat, humidity, ERCOT rates, and utility-specific rebate programs.
Texas Department of Licensing and Regulation HVAC license plus North American Technician Excellence certification. The two credentials that matter for TX installations.
We calculate your home's exact heating and cooling load including latent (humidity) load. No rule-of-thumb sizing. Oversized systems short-cycle in Houston humidity — we prevent that.
Gulf Coast humidity is the #1 comfort complaint in TX. We specify variable-speed systems rated for latent load and verify ductwork is sealed to IECC 2018 standards.
We know every utility rebate program — Oncor, CenterPoint, Austin Energy, CPS Energy. We handle all paperwork and ensure you get every dollar you qualify for.
NuWatt technicians are trained, certified professionals held to our quality standards. Same team, same standards, same accountability on every job.
20-30% of TX energy waste comes from leaky ducts in unconditioned attics. We inspect and seal ductwork as part of every heat pump installation — not an upsell.
Each metro has different utility rebates, climate challenges, and pricing. NuWatt tailors every install to your specific area.
Dallas, Fort Worth, Arlington, Plano, Frisco, McKinney, Irving, Denton
Largest metro — widest temperature swings in TX. Dual-fuel systems popular.
Houston, Sugar Land, The Woodlands, Katy, Pearland, Pasadena, League City
Highest humidity in TX. Variable-speed compressors critical for moisture control.
Austin, Round Rock, Cedar Park, Georgetown, San Marcos, Pflugerville
Best utility rebate in TX. Participating contractor required for full incentive.
San Antonio, New Braunfels, Boerne, Schertz, Seguin, Cibolo
Most affordable major metro for HP installs. Higher SEER2 = higher per-ton rebate.
Don't see your city? Call (877) 772-6357 to confirm service in your area. We cover DFW, Houston, Austin, and San Antonio metro areas.
Texas is in the DOE South Region with a minimum SEER2 of 14.3. But in a cooling-dominant climate where AC runs 6–8 months per year, higher SEER2 pays for itself faster than anywhere in the country.
Federal minimum for new equipment sold in southern states. Meets code but not optimal for TX cooling loads.
Qualifies for most utility rebates. Single-stage or two-stage compressor. Solid ROI for budget-conscious homeowners.
Variable-speed compressor standard at this tier. Excellent dehumidification. Qualifies for top-tier CPS Energy rebate ($275/ton).
Inverter-driven variable-capacity systems. Whisper-quiet operation. Maximum savings in cooling-dominant TX climate.
High humidity demands longer run cycles for dehumidification. Variable-speed is near-mandatory.
Balanced heating/cooling demand. SEER2 15-18 hits the efficiency sweet spot for ROI.
Arid climate with low humidity. Even minimum-efficiency units perform well. Budget for cold-climate rated in Panhandle.
Houston averages 75% relative humidity in summer. A heat pump that only handles temperature (sensible load) without removing moisture (latent load) will leave your home feeling clammy at 72 degrees F. This is the most common HVAC complaint in Southeast Texas.
Run longer at lower capacity, removing more moisture per cycle. The single most important feature for Gulf Coast comfort.
An oversized unit short-cycles — it cools air fast but never runs long enough to dehumidify. NuWatt calculates latent load separately.
Leaky ducts in 140 deg F TX attics pull in humid outside air, overwhelming the system. We test and seal to IECC 2018.
Premium systems (Trane XV20i, Carrier Infinity 24) offer dedicated dehumidification without overcooling. Critical for Houston and coastal areas.
Houston, Corpus Christi, Beaumont, Galveston
Variable-speed compressor is near-mandatory. Size for latent load, not just sensible.
DFW, Austin, San Antonio, Waco
Two-stage or variable recommended. Consider dual-fuel in North TX for winter resilience.
El Paso, Lubbock, Midland, Amarillo
Single-stage works fine. Focus on cold-climate rating in Panhandle (Amarillo hits 15 deg F).
Three ways to get a heat pump in Texas. Here's how they compare on the factors that matter most in 2026.
| Factor | NuWatt (Direct) | Big-Box (Home Depot, Lowe's) | National Chain (Comfort Experts, etc.) |
|---|---|---|---|
| Post-25C Honesty | Transparent: $0 federal credit for heat pump purchases in 2026 | Some sales reps still reference expired $2,000 credit to close deals | Quotes may bake in credits that no longer exist |
| TX Utility Rebate Help | We file Oncor, CenterPoint, Austin Energy, CPS Energy rebates for you | Rebate paperwork left to homeowner | May or may not assist with local rebates |
| Humidity Expertise | Manual J load calculation includes latent (humidity) load for TX | Often sized by rule of thumb ("same tonnage as old unit") | Standardized sizing may miss TX humidity factor |
| SEER2 Guidance | Right-sized SEER2 for your climate zone (Gulf Coast vs North TX vs West TX) | Pushes whatever brand is on promo | One-size-fits-all recommendations |
| Licensing | TDLR-licensed, NATE-certified, insured | Licensed but installation by subcontractors | Subcontracted crews, limited local accountability |
| Ductwork Assessment | Full duct inspection + sealed to IECC 2018. 20-30% of TX energy waste is ducts. | Rarely inspects existing ductwork | May upsell ductwork without full assessment |
| Warranty Support | 10-year workmanship + manufacturer warranty. Local crew for callbacks. | Manufacturer warranty only. Service via call center. | 5-10 year labor warranty. Dispatch from regional office. |
We are brand-agnostic — we recommend the right system for your home, not whichever brand is running a promotion. Two of these brands (Daikin, Goodman) are actually manufactured in Houston.
FIT (DZ-Series)
Ducted whole-home — excellent humidity control. Made in Houston.
Infinity 24 (24VNA)
Premium variable-speed for large homes. Maximum efficiency.
XV20i
Best dehumidification. Ideal for Houston and Gulf Coast.
GSZC18
Best value — made in Houston. Strong TX dealer network.
XP25
Top-tier SEER2 for max cooling savings. HQ in Richardson, TX.
M-Series (MSZ-GL)
Ductless mini-splits. Garage conversions, ADUs, older homes.
From first call to cool air in 1–3 weeks. Most installs complete in a single day.
We evaluate your current system, ductwork condition, insulation, electrical panel, and home layout. Manual J load calculation determines exact sizing for your TX climate zone.
You receive a detailed quote with honest 2026 pricing ($0 federal credit), applicable utility rebate amount, equipment options (2-3 tiers), and projected annual savings.
Our NATE-certified crew removes old equipment, installs heat pump and air handler, seals ductwork, upgrades electrical if needed, and programs smart thermostat.
We schedule city inspection, verify system performance, file your utility rebate paperwork, and register manufacturer warranty. You enjoy the savings.
Honest answers about heat pump installation in Texas in 2026 — no expired credits, no vaporware programs.
Yes. NuWatt Energy holds a Texas HVAC contractor license through TDLR (Texas Department of Licensing and Regulation). Our technicians are NATE-certified (North American Technician Excellence), A+ BBB rated, and we carry full liability and workers compensation insurance. We install heat pumps across DFW, Houston, Austin, and San Antonio metro areas.
No. The Section 25C Energy Efficient Home Improvement Credit expired on December 31, 2025 under the OBBBA (signed July 4, 2025). The $2,000 heat pump tax credit is no longer available. Any contractor still advertising a federal credit for heat pump purchases in 2026 is referencing expired legislation. Texas also has no state income tax, so no state-level credits are possible.
Texas has no statewide heat pump rebate program. Rebates are utility-led: Austin Energy offers up to ~$3,000 through the Power Saver program, Oncor offers up to $600 through Take a Load Off Texas, CenterPoint offers up to $500 through the Standard Offer Program, and CPS Energy offers $100-$275/ton through Casa Verde. NuWatt handles all rebate paperwork as part of our installation service.
A heat pump replaces both your central AC and your gas furnace with a single system. In TX, where cooling is 80% of your HVAC energy use, a high-SEER2 heat pump dramatically cuts cooling costs. For the 20% heating season, a heat pump is 3-4x more efficient than a gas furnace. Total savings are typically $400-$800/year depending on your current equipment and electric rate. You also eliminate gas line maintenance and potential carbon monoxide risks.
The federal minimum for the DOE South Region (which includes TX) is SEER2 14.3. However, we recommend SEER2 16+ for most TX homes to qualify for utility rebates and manage cooling costs. For Houston and Gulf Coast areas, SEER2 17+ with variable-speed compressor is strongly recommended for humidity control. Premium systems reach SEER2 20-24 and can cut cooling costs by 40-50% versus minimum-efficiency units.
Humidity is the single biggest factor in TX heat pump sizing, especially along the Gulf Coast (Houston, Corpus Christi, Beaumont). A properly sized system must handle both sensible load (temperature) and latent load (moisture). Variable-speed compressors run longer at lower capacity, removing more moisture without overcooling. Single-stage units that short-cycle in humidity are the #1 comfort complaint in Houston. NuWatt always performs a Manual J load calculation that accounts for TX humidity levels.
A ducted central heat pump in Texas costs $5,500-$11,000 installed depending on system size, SEER2 rating, and brand. DFW averages $8,250 (3-5 ton), Houston averages $5,367, Austin averages $7,057, and San Antonio averages $5,231. Ductless mini-splits cost $1,500-$5,000 per zone. After utility rebates (up to $3,000 from Austin Energy), net cost drops significantly. NuWatt offers 0% APR financing through approved lenders.
It depends on your location. In North Texas (DFW, Wichita Falls) where winter temps can hit 15-20 degrees F, a dual-fuel system (heat pump + gas furnace backup) provides the best of both worlds: heat pump efficiency above 35 degrees F and gas backup for the coldest nights. In Houston, Austin, and San Antonio, a straight heat pump handles winter easily since temps rarely drop below 30 degrees F. NuWatt evaluates your specific climate zone and energy costs to recommend the right configuration.
Most residential heat pump installations in Texas are completed in 1 day for a straight replacement. If ductwork modification, electrical panel upgrade, or line set replacement is needed, allow 2 days. From initial consultation to installation is typically 1-3 weeks depending on equipment availability. NuWatt schedules around your availability and handles all permit inspections.
NuWatt serves all four major Texas metros: Dallas-Fort Worth (Oncor territory), Houston (CenterPoint territory), Austin (Austin Energy), and San Antonio (CPS Energy). We also serve surrounding communities including Plano, Frisco, McKinney, Sugar Land, The Woodlands, Round Rock, Cedar Park, New Braunfels, and more. Call us at (877) 772-6357 to confirm service in your area.
Get an honest 2026 quote from a licensed TX installer — no expired tax credit assumptions, no high-pressure sales. Real pricing with utility rebates applied.
Or explore: TX Heat Pump Costs • TX Rebates Guide • Heat Pump vs AC + Furnace • TX Electricity Rates