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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
| Upgrade | Condition | Up to |
|---|---|---|
| Solar, 3 to 4.999 kW | SMART Source; paid to the contractor | $1,250 |
| Solar, 5 to 7.499 kW | SMART Source; paid to the contractor | $2,250 |
| Solar, 7.5 to 30 kW | SMART Source; paid to the contractor | $2,750 |
| Battery, added with solar | On top of the solar amount | $1,000 |
| EV charger, added with solar | On 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.
| Upgrade | Rate |
|---|---|
| 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.
| If this is you | Apply here |
|---|---|
| Homeowners | aeptxsaves.com |
| Low-income households | a 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.
Sources
- https://aeptxsaves.com/residential-programs/residential-standard-offer/ — primary source, read 26 September 2026
- https://aeptxsaves.com/wp-content/uploads/11052025PPEEWorshopFinal.pdf
- https://aeptxsaves.com/wp-content/uploads/2026-AEP-Texas-SMART-Source-Program-Guidebook.pdf
- https://aeptxsaves.com/residential-programs/hard-to-reach-standard-offer/
- https://aeptxsaves.com/residential-programs/targeted-low-income/