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Why TX Has No Statewide Program & What's Actually Available
Texas operates a deregulated electricity market through ERCOT covering ~85% of the state. Unlike every New England state, there is no single statewide energy efficiency program. Instead, rebates come from your TDU (Oncor, CenterPoint) or municipal utility (Austin Energy, CPS Energy).
Updated February 2026
If you have moved to Texas from a New England state, you may be wondering where to find the equivalent of Mass Save, Energize CT, or Efficiency Maine. The short answer: it does not exist. Texas has no single statewide energy efficiency program. There is no centralized brand, no single phone number to call, and no unified rebate structure.
This is a direct consequence of Texas's deregulated electricity market. In 2002, Texas restructured its electric industry through ERCOT (Electric Reliability Council of Texas), separating the generation, transmission, and retail sale of electricity. This created two types of companies that customers interact with:
The company you choose to buy electricity from. You can switch REPs freely.
The company that owns the poles and wires delivering electricity. You cannot choose your TDU.
Key takeaway
Your REP (TXU Energy, Reliant, etc.) sells you electricity. Your TDU (Oncor, CenterPoint, etc.) delivers it. Efficiency rebates come from the TDU, not the REP. Your efficiency rebates are determined by where you live (your TDU territory), not which REP you buy electricity from.
TX is fundamentally a cooling market. ~80% of residential HVAC energy goes to cooling (vs. ~80% heating in New England). Programs emphasize SEER2 ratings, AC efficiency, and demand reduction — not cold-climate heat pump performance.
Texas energy efficiency assistance falls into five categories. Your eligibility depends on where you live and your household income.
Heat pump and AC rebates from Oncor, CenterPoint, AEP Texas, TNMP
Austin Energy and CPS Energy run their own programs (not ERCOT-deregulated)
FREE home weatherization for income-eligible households
Crisis utility bill assistance + emergency weatherization
Your available rebates depend on which TDU or municipal utility serves your area. Here is every major utility and what they offer in 2026.
Dallas-Fort Worth metroplex, Waco, Midland-Odessa, Lubbock — largest TDU in TX serving ~3.7M meters
Largest TDU in TX. Most developed efficiency programs. Rebate is point-of-sale through participating contractors.
Greater Houston metro area — serves ~2.5M meters
Second-largest TDU. SOP rebate varies by program year and contractor. Houston humidity makes high-SEER equipment critical.
South TX (Corpus Christi, Laredo, McAllen), West TX — serves ~1M meters
Smaller program budget than Oncor or CenterPoint. South TX territory is extremely cooling-heavy (3,000+ cooling degree days).
Scattered areas across TX — serves ~260K meters in 80+ communities
Smallest major TDU. Limited efficiency budget. Non-contiguous territory makes program delivery challenging.
City of Austin and surrounding service area — serves ~500K meters
Best residential programs in TX. Municipal utility = not deregulated, not ERCOT-managed retail. Strong climate/efficiency focus.
City of San Antonio and Bexar County — serves ~900K meters
Largest municipal utility in US. Not deregulated. Moderate rebate levels. Strong low-income weatherization program (REAP).
Approximately 15% of Texas is outside the deregulated ERCOT retail market. These areas are served by regulated or municipal utilities where you cannot choose your electricity provider.
If you live in a non-ERCOT area, contact your utility directly for available efficiency programs. Regulated utilities may offer different rebate structures than the TDU programs listed above.
What IS available in 2026: TDU utility rebates (Oncor $600, CenterPoint ~$500), municipal utility programs (Austin Energy up to $3,000), WAP free weatherization, and CEAP crisis assistance. These are utility-funded programs unaffected by federal tax credit expirations.
Direct contact information for every major Texas energy program.
Texas Department of Housing & Community Affairs — administers WAP and CEAP statewide
Dial 2-1-1 for CEAP, LIHEAP, and all income-eligible assistance. Available 24/7, multilingual.
Manages LoanSTAR revolving loan fund (commercial/public) and state energy policy.
DFW area TDU — largest efficiency program in TX. HP rebates, commercial programs.
Houston area TDU — Standard Offer Program for HVAC upgrades.
City of Austin municipal utility — best residential rebate programs in TX.
City of San Antonio municipal utility — HP rebates and REAP low-income program.
No. Texas has no single statewide energy efficiency program. Unlike Connecticut (Energize CT), Massachusetts (Mass Save), or Maine (Efficiency Maine), Texas relies on utility-based programs run by TDUs (Transmission & Distribution Utilities) like Oncor and CenterPoint, and municipal utilities like Austin Energy and CPS Energy. Income-eligible programs (WAP, CEAP) are administered by the Texas Department of Housing & Community Affairs (TDHCA), not utilities.
In the deregulated ERCOT market (~85% of Texas), a REP (Retail Electric Provider) is the company you choose to buy your electricity from -- examples include TXU Energy, Reliant, and Gexa Energy. A TDU (Transmission & Distribution Utility) is the company that owns the poles, wires, and infrastructure that delivers electricity to your home -- examples include Oncor and CenterPoint. Energy efficiency rebates come from your TDU, not your REP. You cannot choose your TDU -- it is determined by your geographic location.
Oncor offers a $600/unit rebate for qualifying heat pumps that meet SEER2 15.2+ and HSPF2 8.1+ efficiency requirements. The rebate is processed as a point-of-sale discount through participating Oncor-approved contractors. Oncor also offers residential HVAC tune-up programs, appliance recycling ($50 for old fridge/freezer pickup), and free online home energy audits.
CenterPoint Energy offers a Standard Offer Program (SOP) with approximately $500 for qualifying HVAC upgrades including heat pumps and high-efficiency AC systems. They also offer AC tune-up rebates ($50-75), an appliance recycling program, and a limited duct sealing program. CenterPoint serves the Greater Houston metro area with approximately 2.5 million meters.
No. Austin (served by Austin Energy) and San Antonio (served by CPS Energy) are served by municipal utilities that are not part of the deregulated ERCOT retail market. Residents in these cities cannot choose their electricity provider -- they are served by their municipal utility. However, both cities offer their own energy efficiency programs, and Austin Energy offers some of the best residential rebates in Texas (up to $3,000 for heat pumps + 0% APR financing).
Texas is fundamentally a cooling-dominant market. Approximately 80% of residential HVAC energy in Texas goes to cooling, compared to about 80% going to heating in New England states. Texas programs emphasize SEER2 ratings, AC efficiency, and demand reduction rather than cold-climate heat pump performance. With 2,500+ cooling degree days annually and summer temperatures regularly exceeding 100F, cooling efficiency has the biggest impact on Texas energy bills.
No. The federal Section 25C energy efficiency tax credit (which previously covered heat pumps and insulation) and Section 25D residential solar tax credit both expired on December 31, 2025 under the OBBBA legislation signed July 4, 2025. They provide $0 in 2026. Your best options are Texas utility rebates: Oncor $600/unit, CenterPoint ~$500, Austin Energy ~$3,000, and CPS Energy $100-275/ton for heat pumps.
Approximately 15% of Texas is outside the deregulated ERCOT market. These areas include El Paso (served by El Paso Electric, a regulated utility), parts of East Texas (served by SWEPCO/Entergy, regulated), Austin (Austin Energy, municipal), San Antonio (CPS Energy, municipal), and some rural electric cooperatives. Residents in these areas cannot choose their REP and receive electricity from a single regulated or municipal provider.
NuWatt Energy provides this guide as an educational resource to help Texas homeowners understand the fragmented landscape of energy efficiency programs. All program details, rebate amounts, and eligibility requirements are sourced from TDHCA, SECO, PUCT, and individual utility program documentation. We recommend contacting your specific utility or calling 2-1-1 for the most current program availability.
Explore specific topics in our comprehensive Texas energy guide collection.
Full rebate breakdown by utility territory. Calculator included.
FREE home weatherization for income-eligible households.
WAP, CEAP, LIHEAP, and utility-specific income-eligible programs.
Installation costs by metro area and system type.
How deregulated rates affect heat pump operating costs.
Should you replace your AC and gas furnace with a heat pump?
Texas's fragmented utility landscape makes it hard to know what you qualify for. Contact your TDU directly or dial 2-1-1 for income-eligible assistance.
2-1-1 connects you to WAP, CEAP, LIHEAP, and other income-eligible programs. Available 24/7, multilingual.