Texas Heat Pump Rebates: Your Guide to Local Savings
Discover available heat pump rebates in Texas. Learn about local utility programs from CenterPoint, Austin Energy, and more to save on energy-efficient upgrades.
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Quick Answer: Texas Heat Pump Rebates Overview
Texas does not administer a statewide heat pump rebate program. Instead, individual electric utilities and cooperatives offer a patchwork of local programs.
Several major utilities offer active rebate programs:
- CenterPoint Energy serves the greater Houston area. It has an ongoing residential efficiency program targeting standard customers and low-income households.
- Austin Energy offers rebates on qualifying heat pump equipment. It also provides access to low-interest loans through its Home Energy Savings program.
- Texas-New Mexico Power Company (TNMP) provides cash rebates tied to SEER2 efficiency ratings. Frontier Energy administers these rebates.
- Garland Power & Light offers rebates for heat pump installations in existing homes and businesses within its service territory.
- United Cooperative Services caps total incentives at $1,200 per home. This covers both air-source and ground-source heat pumps.
- Guadalupe Valley Electric Cooperative (GVEC) runs an ongoing rebate program for high-efficiency heat pump systems in its member service area.
Confirm your utility and check current program terms directly on its rebate portal before purchasing.
Understanding Heat Pump Rebates in Texas: Local Utility Focus
Texas's energy efficiency incentive landscape is shaped by its unique electricity market structure.
Why
Sources & Verification (6)
- IRC §25C — Energy Efficient Home Improvement Credit (30% up to $2,000 for heat pumps).
- IRC §45L — New Energy Efficient Home Credit for builders ($5,000 per ENERGY STAR home).
- DOE Home Energy Rebate Programs — HEEHRA & HOMES (Sections 50121 & 50122 of IRA).
- ENERGY STAR Most Efficient certification — DOE/EPA performance tier referenced in IRC §25C eligibility.
- Relating to energy efficiency goals and programs, public information regarding energy efficiency programs, and the participation of loads in certain energy markets.
- Relating to an exemption from sales and use taxes for certain energy-efficient products for a limited period.
Last verified: June 7, 2026
Editorial process: See methodology →
How we verify: 9 source adapters (FAA, DSIRE, IRS, OpenStates, etc.) → AI draft → AI editor → AI polish → spot human review.
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- ecobee Smart Thermostat PremiumHeat-pump compatible, qualifies for most state electrification rebates. Inspectors recognize the brand.
- Google Nest Learning ThermostatWorks with cold-climate heat pumps and most utility demand-response rebate programs.
- Infrared Thermometer (Klein IR1)Verify heat-pump output temperature before and after install. Cheap validation tool inspectors appreciate.
- Mini-Split Installation Line Set KitIf you're doing a DIY-assist install (legal in some states), the line set is the bottleneck. Pre-flared copper pair.
- The Homeowner's Guide to Heat PumpsSelection, sizing, and rebate-stacking guide. Covers the IRA 25C credit, state rebates, and utility on-bill programs.