Fix First HomeWhat home-upgrade rebates actually pay — and who you apply to.

Fix First Home › Arizona › TEP Efficient Home heat pump and air conditioner rebates

TEP Efficient Home heat pump and air conditioner rebates open

Administered by Tucson Electric Power (TEP), with Franklin Energy as implementer.

Tucson Electric Power takes up to $720 off a quality-installed high-efficiency heat pump and up to $600 off an air conditioner through its participating contractors, plus up to $300 for duct sealing, $100 a ton for a mini-split and up to $160 for an AC tune-up.

source · verified 2 October 2026 · amounts in US dollars

What it pays

Instant rebates the participating contractor deducts
UpgradeConditionUp to
High-efficiency heat pump, quality installationRetiring an older working or a non-working AC unit$720
High-efficiency air conditioner, quality installation$600
Duct sealingVaries with leakage reduced$300
Mini-split heat pump or air conditioner$100 a ton—
AC tune-upRefrigerant charge repair $80, indoor coil $40, outdoor coil $40$160

Participating Trade Allies 'deduct the rebate amount from the customer's final project cost'. A free virtual home assessment is available but not required.

Who is eligible

who
TEP residential customers.
contractor
A participating Efficient Home Program contractor must do the work and test, inspect and install to the program's quality guidelines.
old unit
The heat pump and AC rebates apply when you retire an older working unit or a non-working one.
assessment
A free virtual home assessment gives a report of recommendations and rebates; it is optional if you already have a project in mind.

Where the application goes

Work with a participating contractor, who deducts the rebate; tune-up rebates can be claimed with TEP's online forms.

Where the application goes
If this is youApply here
Efficient Hometep.com
Phone866-473-8761

The thing most pages get wrong

TEP's rebate is not paid to you after the fact: the contractor takes it off the final project cost, and only a participating contractor can. Get the rebate shown on the bid.

UniSource pays less

UniSource Energy Services, TEP's sister utility in Mohave and Santa Cruz counties, runs the same program with lower amounts: up to $450 for a heat pump, $375 for an air conditioner and $150 for duct sealing.

No application of your own

TEP's implementer, Franklin Energy, verifies eligibility, manages assessments and issues the rebates; the contractor submits the paperwork. Tune-up rebates have their own online forms.