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Alabama: what you get depends on whether your power is Alabama Power or TVA.
Alabama’s federal HOMES and HEAR rebates have no launch date. Alabama Power pays to switch from gas to electric, with its heat pump offer ending on 1 December 2026; in north Alabama, TVA and the local power companies pay a broader menu of rebates. Here is each program, read off its own pages.
Updated . The federal rebates, weatherization, Alabama Power and TVA EnergyRight, with gas utilities and co-ops in a table; see “Not covered yet” for the rest.
The short version
Alabama Power’s $1,000 is for leaving gas, until 1 December
Alabama Power pays $1,000 when a heat pump of 18 SEER2 or more replaces a gas furnace, and $600 to switch a gas water heater to electric. The heat pump offer ends permanently on 1 December 2026.
source · verified 13 October 2026
TVA country pays more kinds of rebate
In north Alabama, TVA EnergyRight pays $800 for a 17 SEER2 heat pump, $1,500 for geothermal, $300 each for insulation and air sealing, and $900 off a heat pump water heater.
source · verified 13 October 2026
HOMES and HEAR: no date
ADECA says the federal rebates are under development, with no date.
source · verified 13 October 2026
Your utility
In Alabama the utility that delivers your electricity decides which rebates you can get.
| Utility | What it pays | Worth knowing |
|---|---|---|
| Alabama Power | $1,000 heat pump replacing a gas furnace (to 1 December 2026); $600 gas-to-electric water heater | No insulation rebate listed |
| TVA local power companies (Huntsville Utilities, Joe Wheeler EMC and others) | $500 or $800 heat pump; $800 mini-split; $1,500 geothermal | $300 each for insulation, air sealing and duct sealing; $900 off a heat pump water heater; Home Uplift |
| Baldwin EMC and other PowerSouth co-ops | Baldwin publishes its heat pump chart as an image; up to $400 a ton for manufactured homes replacing an electric furnace | Ask your co-op |
| Spire (gas) | Furnace and water heater rebates; Alabama amounts not read | Its site shows rebates by region |
Baldwin EMC’s figure is from its own page; Spire’s Alabama amounts would not load.
source · verified 13 October 2026
TVA EnergyRight in north Alabama
TVA’s menu is the same across the Tennessee Valley, so its program pages sit with Tennessee’s; they apply wherever a TVA local power company, such as Huntsville Utilities or Joe Wheeler EMC, delivers your electricity.
TVA heat pump rebates
$500 to $1,500
$800 for a 17 SEER2 heat pump or mini-split, $1,500 for geothermal, through a Quality Contractor Network member.
What it pays →
TVA insulation and water heater rebates
$300 to $900
$300 each for attic, wall and air sealing; $900 off a heat pump water heater at participating retailers.
The rules →
TVA Home Uplift
free
Upgrades averaging $10,000 for income-eligible customers of participating power companies.
Who qualifies →
TVA EnergyRight financing
$0 down
Fixed-rate loans through participating local power companies.
The terms →
What closed, and what you will still be told to apply for
- Federal Energy Efficient Home Improvement Credit (25C) — ended for improvements after 31 December 2025. What it paid.
- Federal Residential Clean Energy Credit (25D) — ended for solar, batteries and geothermal placed in service after 31 December 2025. What it paid.
- Alabama HOMES and HEAR — not launched; ADECA says the date has not been determined. Where it stands.
- Alabama Power’s $1,000 heat pump rebate — ends permanently on 1 December 2026. The rules until then.
Not covered yet
The federal rebates, weatherization, Alabama Power and TVA EnergyRight are here. Still missing:
- Spire’s Alabama furnace and water heater amounts (its site served Missouri’s).
- PowerSouth’s member co-ops’ heat pump charts and the municipal electric systems outside TVA.
- Huntsville Utilities’ and other TVA distributors’ own extras, and which offer Home Uplift.
- City programs in Birmingham, Montgomery and Mobile.
Questions people in Alabama actually ask
Is there a heat pump rebate in Alabama in 2026?
It depends on your utility. Alabama Power pays $1,000 when a heat pump of 18 SEER2 or more replaces a gas furnace, until 1 December 2026. Customers of TVA’s local power companies in north Alabama get $800 for a 17 SEER2 heat pump, $500 at 15 to 16.99, and $1,500 for geothermal. The federal HEAR rebate has not launched and the federal tax credit ended with 2025.
Are the HOMES and HEAR rebates available in Alabama?
No. ADECA says the program is under development and the date households can apply has not been determined. You can email [email protected] to be told when it opens.
Who qualifies for free weatherization in Alabama?
Households with income up to 200% of the federal poverty level, $66,000 a year for a family of four in 2026. You apply to the community action agency for your county, not to ADECA.
Does Alabama Power give rebates for insulation?
Not on its rebates page. Alabama Power lists four offers: $1,000 for a heat pump replacing a gas furnace, $600 for switching a gas water heater to electric, up to $200 for a smart thermostat and $500 for a home EV charger.
What does TVA pay for insulation in Huntsville?
TVA EnergyRight and your local power company pay $300 each for attic insulation, wall insulation, air sealing and duct sealing, done by a Quality Contractor Network member, who submits the rebate for you. A retail coupon takes $900 off a heat pump water heater, two per address.