Texas Heat Pump Rebates 2026: Complete Utility Guide

Texas has no single statewide heat pump rebate program. Rebates come from your delivery utility (TDU) or municipal utility. The largest rebates are: Austin Energy Power Saver (~$3,000 whole-home), CPS Energy Casa Verde ($100–$275/ton), Oncor Take a Load Off Texas (up to $600/unit), and CenterPoint SOP (up to $500/unit). AEP Texas and TNMP have limited or no heat pump rebates as of February 2026. The federal Section 25C tax credit expired December 31, 2025, so there is no federal tax credit for heat pumps in 2026.

Use the ZIP code lookup tool at the top of this page. Enter your 5-digit ZIP code and we will match you to your delivery utility (in deregulated areas) or municipal utility (in regulated areas like Austin or San Antonio). In deregulated ERCOT territory, your TDU (Oncor, CenterPoint, AEP Texas, or TNMP) delivers your power and provides rebates, while your REP (retail electric provider) sells you electricity. Your TDU does not change when you switch REPs.

About 85% of Texas operates in a deregulated electricity market through ERCOT. In deregulated areas, a TDU (transmission and distribution utility) like Oncor or CenterPoint delivers power over the grid, but you choose your own REP (retail electric provider) who sells you electricity. Heat pump rebates come from your TDU, not your REP. In regulated areas (Austin Energy, CPS Energy), the same utility generates, delivers, and sells electricity. Regulated utilities typically offer larger rebate programs because they control the full customer relationship.

No. The federal Section 25C energy efficiency tax credit expired on December 31, 2025, under the One Big Beautiful Bill Act (OBBBA) signed July 4, 2025. There is zero federal tax credit available for residential heat pump purchases in 2026. Additionally, Texas has no state income tax, so there are no state-level tax credits for heat pumps. Your utility rebate is the primary incentive available today.

HEAR (Home Efficiency and Appliance Rebates) is a federal program funded by the Inflation Reduction Act. Texas received a $690 million allocation — the largest of any state. SECO (State Energy Conservation Office, under the Texas Comptroller) is the state administrator. SECO issued an RFP for a third-party program administrator with proposals due February 5, 2026. The program has NOT launched and no rebates are available yet. When launched, low-income households (below 80% AMI) could receive up to $8,000 and moderate-income households (80–150% AMI) up to $4,000. SECO warns against signing agreements contingent on HEAR funding before the program officially launches.

Requirements vary by utility. Austin Energy requires a participating contractor enrolled in the Power Saver program. CPS Energy requires a licensed HVAC contractor but does not restrict to a specific network. Oncor requires a licensed contractor but does not have a specific contractor network like New England states. All installations require a TDLR-licensed HVAC contractor — this is a Texas state requirement regardless of rebate programs.

The DOE minimum for the South Region (which includes Texas) is SEER2 14.3 as of January 2023. However, utility rebate programs may require higher ratings. CPS Energy pays $100/ton at SEER2 15.2+ and $275/ton at SEER2 16+. Oncor requires ENERGY STAR certification. Austin Energy requires ENERGY STAR or CEE Tier-qualified equipment. For best efficiency in the Texas cooling-dominant climate, we recommend SEER2 16+ with a variable-speed compressor for humidity control.

Yes, when HEAR launches in Texas. The HEAR program is designed to be stackable with local utility incentives. A low-income Austin Energy customer could theoretically combine ~$3,000 from Austin Energy Power Saver with $8,000 from HEAR for $11,000 in total rebates. However, HEAR has NOT launched in Texas yet — SECO is still in the RFP phase. Plan your budget based on utility rebates that are available today, and treat HEAR as a potential additional benefit when it becomes available.

Oncor offers up to $600 per unit through Take a Load Off Texas, while CenterPoint provides up to $500 per qualifying ENERGY STAR heat pump unit through its Standard Offer Program (SOP). CenterPoint also offers a separate $75 smart thermostat rebate. For the largest utility rebates in Texas, Austin Energy (~$3,000 whole-home) leads all providers.

A typical ducted central heat pump in Texas costs $5,500–$11,000 installed (3–5 ton). After utility rebates, costs vary: Austin Energy customers pay approximately $4,000–$8,000 after the ~$3,000 rebate. CPS Energy customers pay approximately $4,200–$9,600 after $100–$275/ton. Oncor customers pay approximately $4,900–$10,400 after the $600 rebate. These are before any future HEAR rebates. If HEAR launches and you qualify as low-income, costs could drop by an additional $8,000.

Texas utility rebate programs are generally ongoing but subject to annual funding limits. Oncor Take a Load Off Texas operates on a calendar-year budget and can close early when funds are exhausted. Austin Energy Power Saver runs continuously. CPS Energy Casa Verde programs are funded annually. There is no single statewide deadline like New England states have. We recommend applying early in the year (Q1–Q2) when utility budgets are fullest. Submit rebate applications promptly after installation: Oncor requires 90 days, CPS Energy requires 60 days.

Most Texas utility rebate programs require installation of a smart or programmable thermostat per HVAC unit. Oncor specifically requires DOE-listed smart thermostats. Popular qualifying models include Ecobee, Google Nest, and Honeywell T-series. Some utilities offer separate thermostat rebates: CenterPoint provides $75, TNMP provides $125–$175. A smart thermostat enables demand-response participation, which helps ERCOT manage grid load during peak summer demand — a critical priority after the 2021 Winter Storm Uri and subsequent grid reliability concerns.