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AEP Texas home energy efficiency programs open

Administered by AEP Texas, under the Public Utility Commission of Texas, through participating contractors.

AEP Texas, the delivery utility for much of South, Central and West Texas, pays contractors for insulation, air sealing, duct sealing, windows, heat pump water heaters and solar, and says most measures can come at low or no cost. It publishes what it pays: solar earns $1,250 to $2,750, plus $1,000 with a battery.

source · verified 26 September 2026 · amounts in US dollars

What it pays

What AEP Texas pays the installer, by system
UpgradeConditionUp to
Solar, 3 to 4.999 kWSMART Source; paid to the contractor$1,250
Solar, 5 to 7.499 kWSMART Source; paid to the contractor$2,250
Solar, 7.5 to 30 kWSMART Source; paid to the contractor$2,750
Battery, added with solarOn top of the solar amount$1,000
EV charger, added with solarOn top of the solar amount$500

What AEP Texas pays contractors for other upgrades

2026 Residential and Hard-to-Reach Standard Offer rates, from AEP Texas's contractor workshop. Paid per kilowatt (kW) of peak demand and kilowatt-hour (kWh) of annual energy saved, or per unit.

AEP Texas 2026 contractor incentive rates
UpgradeRate
Ceiling, wall and floor insulation$600 per kW + $0.20 per kWh
Attic encapsulation$700 per kW + $0.24 per kWh
Duct sealing$542.50 per kW + $0.32 per kWh
ENERGY STAR windows$4 per sq ft
ENERGY STAR connected thermostat$250 each
Heat pump water heater$850 (55 gallons or more), $1,100 (under 55), as printed
Solar screens$3 per sq ft
Air sealing, hard-to-reach homes$275 per kW + $0.11 per kWh

Who is eligible

delivery utility
AEP Texas must deliver your electricity.
hard-to-reach
Households at or under 200% of the federal poverty guidelines, or on an approved program such as Supplemental Security Income, get the Hard-to-Reach program's rates; an approved contractor can verify eligibility.
low income
The Targeted Low-Income Program works through non-profit community agencies, with at least 10% of AEP Texas's efficiency budget.
solar
Once per meter; up to $4,250 per customer. 2026 residential budgets: $503,206 (AEP Texas Central), $167,735 (North), first come, first served; projects finished by 30 November 2026.
per project
At least one primary and two secondary measures.

Where the application goes

Through a participating contractor, who is paid the incentive.

Where the application goes
If this is youApply here
Homeownersaeptxsaves.com
Low-income householdsa non-profit agency in the Targeted Low-Income Program

The thing most pages get wrong

Rebate finders list AEP Texas's program as a rebate. The incentive goes to the contractor, and AEP Texas says only that most measures may be provided at low or no cost as a result. Because it publishes its rates, you can work out roughly what your contractor is being paid.

Its solar guidebook's table is dated a year early

The 2026 SMART Source guidebook introduces its rate table as the incentive levels for program year 2025.