Fix First Home › United States › Arizona
Arizona: SRP and TEP still pay, APS does not, and the federal rebate changed in September.
Arizona’s federal appliance rebate, Efficiency Arizona, is open, up to $14,000 per home, but since 1 September 2026 it pays only to replace electric equipment, not gas. Among the utilities, SRP pays up to $1,125 toward a new heat pump or air conditioner and 75% of attic insulation, and Tucson Electric Power pays up to $720 and $800; APS, after the Arizona Corporation Commission halved its efficiency budget, lists no equipment rebate at all. Here is all of it, read off each administrator’s own pages.
Updated . The state’s programs, APS, SRP, TEP, UniSource and Southwest Gas; the rural co-ops and city utilities are not covered yet.
The short version
Efficiency Arizona stopped paying to switch from gas
From 1 September 2026, Efficiency Arizona rebates replace existing electric appliances and heat pumps only. The limits did not change: up to $8,000 for a heat pump and $14,000 per home, all of the cost below 80% of area median income and half up to 150%.
source · verified 2 October 2026
APS customers: no equipment rebate
APS lists no rebate for an air conditioner, heat pump or insulation; Cool Rewards pays $50 and $35 per smart thermostat. SRP customers get up to $1,125 toward a new system.
source · verified 2 October 2026
Weatherization is 200% of poverty again
The state program dropped its 400% tier on 1 July 2026; the line is $66,000 for a family of four.
source · verified 2 October 2026
Statewide
The federal appliance rebate, weatherization and the solar credit.
Efficiency Arizona
up to $14,000
Heat pumps, water heaters, electric cooking and insulation below 150% of area median income; electric-to-electric only.
Who qualifies →
Weatherization
free
Insulation, air sealing and cooling tune-ups at or below 200% of poverty.
Income limits →
Solar energy credit
25%, up to $1,000
A state income tax credit for a solar system you buy; leases do not qualify.
How it works →
Your electric utility
Equipment money comes from the utility that delivers your power, and Arizona’s big three no longer agree on paying it.
| Utility | Heat pump or AC | Attic insulation | Worth knowing |
|---|---|---|---|
| SRP | $75 to $225 a ton, up to $1,125 | 75% up to $600, on the invoice | Duct repair $400; windows $3 a sq ft |
| Tucson Electric Power | Up to $720 (AC up to $600), through the contractor | Up to $800, by check | Heat pump water heater $400; 2024-2026 program period |
| UniSource Energy Services (UNS Electric) | Up to $450 (AC up to $375), through the contractor | — | Duct sealing $150; tune-up up to $160 |
| APS | None listed | None listed | Cool Rewards $50 + $35 per thermostat; A/C repair help for limited incomes |
TEP’s and UniSource’s heat pump and AC rebates are deducted by participating contractors (Franklin Energy runs both programs); SRP’s Cool Cash is claimed by you or your contractor within six months.
source · verified 2 October 2026
SRP Cool Cash
up to $1,125
Per ton by compressor type, for systems installed before 30 April 2027.
What it pays →
SRP insulation and windows
up to $600
75% of attic insulation, duct repair $400, windows $3 a square foot.
The rates →
TEP Efficient Home
up to $720
Heat pumps, air conditioners, duct sealing and tune-ups through participating contractors.
What it pays →
TEP insulation and water heaters
up to $800
Attic insulation by check, $400 for a heat pump water heater; free weatherization below 200%.
What it pays →
APS
Cool Rewards
No equipment rebates; smart thermostat credits, bill discounts and A/C repair help.
What is left →
Gas
Southwest Gas serves most of Arizona’s gas customers; its 2026 rebates are small.
| Measure | Rebate | Worth knowing |
|---|---|---|
| ENERGY STAR windows | $1 a sq ft, up to 75% of cost | Gas space heating at the address |
| Front-load clothes washer | $50 | Gas water heating; up to two |
| Low-flow showerhead | $5 | Gas water heating; up to two |
| Gas furnace or water heater | None on the 2026 form | — |
Purchases 1 January to 31 December 2026; applications by 31 January 2027.
source · verified 2 October 2026
Which income line applies
Figures are for a household of four.
| Program | Income test | Family of four | Status |
|---|---|---|---|
| Weatherization | 200% of the poverty line (400% tier dropped 1 July 2026) | $66,000 | Open |
| TEP and UniSource weatherization | 200% of the poverty line | $66,000 | Open, funding limited |
| Efficiency Arizona, 100% of cost | Below 80% of area median income | By county | Open, electric-to-electric |
| Efficiency Arizona, 50% of cost | 80% to 150% of area median income | By county | Open, electric-to-electric |
| TEP Lifeline discount | 200% of the poverty line | $66,000 | Open |
source · verified 2 October 2026
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.
- Efficiency Arizona’s gas-to-electric rebates — ended for reservations from 1 September 2026. What it still pays.
- APS equipment rebates — none listed on APS’s savings pages; the Commission cut APS’s proposed efficiency budget by more than half in December 2025. What APS offers now.
- Arizona weatherization’s 400% tier — no longer allowed from 1 July 2026.
- SRP’s refrigerator recycling and pool pump rebates — no longer available.
Not covered yet
The state’s programs, APS, SRP, TEP, UniSource and Southwest Gas are here. Still missing:
- The federal whole-home rebate (HOMES): no Arizona application or amounts were found.
- The electric co-ops (Trico, Sulphur Springs Valley, Mohave Electric, Navopache and others) and city utilities such as Mesa: their sites refused our requests.
- The Arizona Corporation Commission’s full December 2025 decision on APS’s efficiency plan.
- Arizona’s solar sales tax and property tax exemptions, and city and county home repair programs.
Questions people in Arizona actually ask
Is there an AC or heat pump rebate in Arizona in 2026?
From SRP and TEP, yes; from APS, no. SRP pays $75 to $225 a ton, up to $1,125, for a new air conditioner or heat pump installed before 30 April 2027. Tucson Electric Power takes up to $720 off a heat pump and $600 off an air conditioner through its contractors, and UniSource up to $450 and $375. APS’s savings pages list no equipment rebate. Efficiency Arizona pays up to $8,000 toward a heat pump below 150% of area median income, replacing electric equipment only.
Does Efficiency Arizona still pay to replace a gas furnace with a heat pump?
No. Since 1 September 2026 Efficiency Arizona follows a federal notice: rebates are no longer allowed for replacing gas appliances with electric ones, only for replacing existing electric appliances and heat pumps. Reservations secured by 28 August 2026 keep the old rules.
Who qualifies for free weatherization in Arizona?
Owners and renters (with the landlord’s permission) at or below 200% of the federal poverty line, $66,000 a year for a family of four. The Department of Housing dropped its 400% tier on 1 July 2026. Apply to the provider for your county.
Does APS still give rebates?
Not for equipment. APS’s savings pages offer Cool Rewards, $50 per smart thermostat when you enroll and $35 each summer season, Marketplace discounts, bill discounts of up to 25% or 60% by income, help repairing a broken air conditioner for limited-income homeowners through partner agencies, and free weatherization.
How much is Arizona's solar tax credit?
25% of the cost of a solar energy device, including installation, up to $1,000 per residence, with five years to use any excess. You must buy the system: leases and power purchase agreements do not qualify. The federal credit ended with 2025.
Does Southwest Gas give rebates in Arizona?
Small ones: in 2026, $1 a square foot for ENERGY STAR windows in gas-heated homes, capped at 75% of cost, $50 for a front-load washer and $5 for a low-flow showerhead. The 2026 Arizona form has no furnace or water heater rebate.