Heat Pump Rebates by State 2026: Utility, State & Federal Programs

Heat pump rebates got more complicated in 2026. The federal 30% residential clean energy credit that drove heat pump adoption no longer applies to most new residential installations after December 31, 2025. But local incentives — utility rebates, state programs, and DOE-funded rebates — are still actively available in most markets.

This guide explains what's available in 2026 by state and how to find the programs that apply to your specific utility and ZIP code.

Heat Pump Incentive Sources in 2026

| Source | Typical Amount | Who Qualifies | How to Apply | |---|---|---|---| | Electric utility rebate | $100–$1,500 | Most homeowners | Through utility or contractor; pre-approval often required | | Gas utility rebate | $50–$400 | Homes converting from gas | Through gas utility; may require audit | | State energy office program | $200–$2,000+ | Varies by state (income-qualified available) | State energy office or program portal | | DOE HEAR program | Up to $8,000 | Income-qualified households | State-administered; varies by state | | DOE HOMES program | Up to $4,000–$8,000 | Based on whole-home energy savings | Modeled or measured savings; state-administered | | Manufacturer promotion | $100–$500 | Varies by brand/model | Through contractor; seasonal |

State-by-State Heat Pump Rebate Overview

The availability and amounts below reflect programs active or recently active as of mid-2026. Programs change — always verify current status with your utility or state energy office before beginning a project.

States with Strong Heat Pump Rebate Programs

Massachusetts

• Mass Save: $1,000–$2,500 for air-source heat pumps; up to $3,000 for cold-climate models
• Income-qualified households may receive up to $10,000 through the Whole Home program
• Requires registered Mass Save contractor; pre-approval before installation
• Combined with utility rebates, some homeowners offset $3,000–$5,000 of installed cost
• Contact: masssave.com

New York

• NY Homes program (NYSERDA): Rebates for qualifying heat pump installations through utility programs
• Con Edison, National Grid: $200–$1,000 rebates for qualifying equipment
• NYC residents may have additional programs through NYC Accelerator
• Contact: nyserda.ny.gov

Oregon

• Energy Trust of Oregon: Cash incentives for air-source heat pumps ($300–$700), ductless mini-splits ($200–$500), and smart thermostats ($75–$100)
• Income-qualified households: enhanced rebate amounts available
• Contact: energytrust.org

California

• Utility rebates: PG&E, SCE, SDG&E, and SoCalGas each offer varying rebates
• SGIP (Self-Generation Incentive Program): Primarily battery storage, but heat pump water heaters included in some cycles
• Low-income programs: TECH Clean California and CalHFA programs for income-qualified households
• Contact: your utility's website; calenergy.ca.gov for state programs

Minnesota

• CenterPoint Energy and Xcel Energy: $50–$500 for qualifying heat pump equipment
• Minnesota Commerce Department: State efficiency programs for income-qualified households
• Cold-climate heat pumps (rated to -13°F) often receive higher rebate amounts
• Contact: mn.gov/commerce/energy or your utility

Colorado

• Xcel Energy: Heat pump rebates up to $1,200 for qualifying installations; smart thermostat rebates $75–$100
• Colorado Energy Office: State programs, particularly for low-to-moderate income households
• Contact: xcelenergy.com/rebates; energyoffice.colorado.gov

Illinois

• ComEd and Nicor Gas: Rebates on qualifying heat pump equipment
• Illinois Home Weatherization: Income-qualified programs that may include heat pump upgrades
• Contact: comed.com/rebates; icecf.org

Washington

• Puget Sound Energy (PSE): Heat pump rebates $200–$900 for qualifying equipment; higher for cold-climate models
• Avista: Rebates for qualifying heat pumps
• State clean building standards are driving utility program expansion
• Contact: pse.com/rebates; avistautilities.com

New Jersey

• PSE&G, JCP&L: Heat pump rebates $100–$500 for qualifying equipment
• NJ Clean Energy Program: State rebates for qualifying HVAC equipment
• Contact: njcleanenergy.com

Michigan

• DTE Energy and Consumers Energy: Rebates on qualifying heat pump equipment ($100–$600)
• Contact: dteenergy.com/rebates; consumersenergy.com

States with Moderate Rebate Programs

| State | Primary Program | Typical Rebate | Contact | |---|---|---|---| | Maryland | EmPOWER Maryland, BGE/Pepco | $100–$600 | bge.com/rebates | | Virginia | Dominion Energy, Appalachian Power | $100–$500 | dominionenergy.com | | Georgia | Georgia Power, CORE EMC | $100–$400 | georgiapower.com | | Ohio | AEP, FirstEnergy, Duke | $100–$500 | Your utility website | | Pennsylvania | PECO, PPL, Duquesne Light | $100–$400 | Your utility website | | North Carolina | Duke Energy, Dominion NC | $100–$500 | duke-energy.com/rebates | | Tennessee | TVA EnergyRight | $200–$600 | tva.com/energy-products | | Texas | Oncor, AEP, Reliant (varies by utility) | $100–$400 | Your utility website | | Florida | FPL, Duke Florida, TECO | $100–$400 | fpl.com/rebates | | Arizona | APS, SRP | $100–$400 | aps.com/rebates; srp.net |

States with Limited Utility Programs

Some states have limited or no utility heat pump rebates but may have state energy office programs or DOE Home Energy Rebates available:

• Indiana, Kansas, Nebraska, Oklahoma, Wyoming: Fewer utility programs; check state energy office and rural electric cooperatives
• Alaska: High-cost energy state with some targeted programs; contact AEA (alaskaenergy.us)
• Nevada: NV Energy has some programs; check nvenergyrebates.com

DOE Home Energy Rebates: What They Are and Where Available

The Inflation Reduction Act funded two rebate programs administered by states:

HEAR (High-Efficiency Electric Home Rebate Act)

• For: Income-qualified households (under 150% of area median income)
• Heat pump rebate: Up to $8,000 for qualified air-source heat pumps
• Ductless mini-split: Up to $8,000
• Heat pump water heater: Up to $1,750
• Electrical panel upgrade: Up to $4,000 (often required for heat pump conversion)
• Air sealing/insulation: Up to $1,600

HOMES (Home Owner Managing Energy Savings)

• For: All income levels (higher amounts for lower income)
• Based on: Whole-home modeled or measured energy savings
• Amounts: $2,000–$4,000 for moderate income-savers; up to $8,000 for 35%+ savings
• Requires: Approved energy auditor and contractor

States with active DOE rebate programs (verify current status): The programs launch state by state. As of mid-2026, several states have active programs — check your state energy office or energysaver.gov for current launch status.

How to Find Your Specific Rebates

1. Call your electric utility and ask: "What heat pump rebates are currently available for my account type?"
2. Call your gas utility (if applicable): Some utilities offer "fuel switching" incentives for switching from gas to heat pump
3. Check your state energy office website — search "[your state] energy office heat pump rebate 2026"
4. Ask your HVAC contractor — many are enrolled in utility rebate programs and handle paperwork
5. Check DSIRE (Database of State Incentives for Renewables & Efficiency): dsireusa.org

Rebate Pre-Approval: What to Know

Many programs require pre-approval before installation:

• Submitting an application before the contractor begins work
• Getting a home energy audit first (some programs require this)
• Using a contractor from an approved list
• Pre-qualifying the equipment model number

Installing without pre-approval is the most common reason rebate applications are denied. When in doubt, contact the program administrator before signing any contractor agreement.

How Much Can Rebates Actually Reduce Your Heat Pump Cost?

| Scenario | Heat Pump Installed Cost | Rebates Available | Net Cost | |---|---|---|---| | Texas homeowner, standard rebates | $7,500 | $400 (utility) | $7,100 | | Massachusetts homeowner, Mass Save | $11,000 | $2,500 (Mass Save) + $500 (utility) | $8,000 | | California income-qualified, HEAR | $10,000 | $8,000 (HEAR) + $500 (utility) | $1,500 | | Minnesota homeowner + utility rebate | $9,000 | $800 (utility) + $500 (state) | $7,700 | | New York homeowner, NY Homes | $10,500 | $1,000 (NYSERDA) + $400 (utility) | $9,100 |

Rebate stacking (combining utility + state + DOE) can reduce effective cost by 10–60% depending on income and location.

See our heat pump installation cost guide for baseline installation cost ranges by state and system type.