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Austin Energy home rebates open
Administered by Austin Energy, the City of Austin's electric utility.
Austin's city utility pays $650 to $950 for a heat pump, $1,000 to $1,600 as part of a whole-home Home Energy Savings project, $1,000 for a heat pump water heater, $4,000 toward solar, and $500 plus yearly payments for a battery, with rebates for attic insulation, duct sealing and solar screens. The rebate goes to you, through a participating contractor.
source · verified 26 September 2026 · amounts in US dollars
What it pays
| Upgrade | Condition | Amount |
|---|---|---|
| Solar | Over 3 kW, participating contractor, after the solar quiz; raised from $2,500 on 1 July 2026 | $4,000 |
| Heat pump, in a Home Energy Savings project | Tiers 1 to 3 (15.2 to 17.0 SEER2), with all recommended upgrades | $1,000–$1,600 |
| Air conditioner, in a Home Energy Savings project | Tiers 1 to 3 (15.2 to 18.0 SEER2) | $950–$1,450 |
| Heat pump water heater | ENERGY STAR; also $1,000 off at participating retailers | $1,000 |
| Heat pump | On its own, tiers 1 to 3; replacing a system and a home both 10 years or older | $650–$950 |
| Air conditioner | On its own, tiers 1 to 3 | $600–$800 |
| Battery | Per battery given permission to operate on or after 18 February 2025, enrolled in Power Partner | $500 |
| Pool pump | ENERGY STAR variable-speed, participating contractor | $300 |
| Home Energy Savings bonus | Within six months of an air conditioner rebate | $200 |
| AC tune-up | Per system, up to five, in a Home Energy Savings project | $175 |
| Smart thermostat | Plus $75 for enrolling in Power Partner and $30 a year | $50 |
| Window air conditioner | ENERGY STAR | $50 |
Home Energy Savings rates
The whole-home program: a participating contractor assesses the home free, then does the recommended work. Rebates average $3,000, or $1,500 in the lighter Essential version.
| Improvement | Rebate |
|---|---|
| Air infiltration and duct sealing (required) | $0.20 per sq ft of floor area |
| Total external static pressure (required) | $175 first system, $100 each additional |
| Attic insulation to R-38 | Attic sq ft × $0.03 × R-value added, + $45 |
| Duct replacement | $3.25 per linear foot ($1.00 to insulate existing duct) |
| Solar screens or film, single-pane windows | $1.00 per sq ft |
| Deep pleated media filter | $50 each |
Who is eligible
- customer
- You must get your electricity from Austin Energy.
- contractor
- Heat pump, air conditioner, pool pump, solar and Home Energy Savings rebates need an Austin Energy participating contractor, who applies for you within 90 days. The rebate goes to the owner or account holder, not the contractor.
- loan
- Home Energy Savings projects can be financed through Velocity Credit Union: $1,500 to $25,000, up to 120 months, minimum credit score 600.
- solar credit
- Austin Energy buys all your solar output at its Value of Solar rate, 9.91 cents per kWh for systems under 1 MW.
What disqualifies you
The rules people find out about after the work is done.
- A heating and cooling system or home under 10 years old, for the equipment rebates.
- Equipment that replaced something rebated in the last 10 years.
- Homes with spray foam insulation, or asbestos in the heating and cooling system, for Home Energy Savings.
- Third-party-owned batteries; power purchase agreements for residential solar are not allowed in Austin Energy's territory.
Where the application goes
Mostly through a participating contractor.
| If this is you | Apply here |
|---|---|
| Equipment and Home Energy Savings | your participating contractor applies |
| Solar | austinenergy.com |
| Thermostat, window AC, battery | austinenergy.com |
The thing most pages get wrong
Austin Energy's own pages disagree on the 0% loan. The top of the Home Energy Savings page offers it "now through September 30, 2027"; the loan section lower down says December 1 to September 30, 2026. On 2 October 2026, after the earlier date had passed, the page still gave both, so ask the contractor which applies before counting on 0%. Both equipment rebate pages also still send readers to the IRS page for the federal heat pump credit, which ended with 2025.
The rebates were raised
The smart thermostat rebate went from $30 to $50 on 24 November 2025 and the solar rebate from $2,500 to $4,000 on 1 July 2026. The Home Energy Savings page says its heat pump and air conditioner rebates were raised "Starting Dec. 1st", without a year.
Sources
- https://austinenergy.com/energy-efficiency/rebates-incentives/residential — primary source, read 26 September 2026
- https://austinenergy.com/energy-efficiency/rebates-incentives/residential/cooling-heating/ac
- https://austinenergy.com/energy-efficiency/rebates-incentives/residential/home-improvements/home-energy-savings
- https://austinenergy.com/energy-efficiency/rebates-incentives/residential/green-power/residential-solar-rebate
- https://austinenergy.com/energy-efficiency/rebates-incentives/residential/appliances-equipment/pp-battery
- https://austinenergy.com/energy-efficiency/rebates-incentives/residential/appliances-equipment/hp-water-heater