Fix First Home › United States › Texas
Texas: the state pays nothing yet, and most utility money goes to your contractor.
The federal tax credits ended with 2025, and Texas has not launched its federal HOMES and HEAR rebates. What is left comes from whoever delivers your electricity. Across Dallas–Fort Worth, Houston and the rest of the competitive market, the delivery utility pays the contractor, not you, and mostly publishes no amount a homeowner can count on. The city utilities in Austin and San Antonio, El Paso Electric and a few co-ops pay homeowners directly. Here is all of it, read off each administrator’s own pages.
Updated . The state programs, the four big delivery utilities of the competitive market, El Paso Electric, Entergy Texas, SWEPCO, Xcel Energy, Austin Energy, CPS Energy, two gas utilities’ offers and six large electric co-ops; see “Not covered yet” for the rest.
The short version
The federal rebates have not launched
Texas was allocated $690 million for the Inflation Reduction Act’s HOMES and HEAR rebates. On 21 August 2026 the Comptroller’s energy office said both were still in planning and design, with no launch date until the Department of Energy approves the state’s plan, and no approved contractors. It advises against signing anything tied to them before they launch. Where they stand.
source · verified 26 September 2026
In most of Texas, the utility pays your contractor
Oncor, CenterPoint, AEP Texas and TNMP deliver electricity to most Texans in the competitive market, and their efficiency programs pay the contractor for the energy a job saves. TNMP’s 2026 manual says it will “pay all incentives directly to the Project Sponsors, not to customers”, and contractors do not have to pass any of it on. Oncor publishes no per-upgrade amount at all. Ask for the incentive in writing, as its own line on the quote.
source · verified 26 September 2026
What pays you directly
Austin Energy: $4,000 toward solar, $1,000 for a heat pump water heater, and up to $1,600 for a heat pump in a whole-home project. CPS Energy in San Antonio: up to $310 a ton for a new heat pump or air conditioner. El Paso Electric mails its rebates too. And below $66,000 a year for a family of four, free weatherization through a local agency in every county.
source · verified 26 September 2026
Statewide
What the state itself offers is free weatherization, a three-day tax holiday and a property tax exemption.
Weatherization Assistance Program
free
Insulation, air sealing, duct work and heating and cooling repair, through a local agency, under 200% of the federal poverty guidelines.
Income limits →
HOMES and HEAR rebates
not launched
Up to $8,000 and $14,000 on paper. Still being designed; no contractors are approved.
Where they stand →
ENERGY STAR sales tax holiday
no sales tax
Memorial Day weekend: air conditioners up to $6,000, refrigerators and appliances. Not heat pumps.
What counts →
Solar property tax exemption
the added value, untaxed
File Form 50-123 with your county appraisal district between 1 January and 30 April.
How to claim it →
The tax holiday leaves out heat pumps
Of heating and cooling equipment, only ENERGY STAR air conditioners priced at $6,000 or less are tax-free over Memorial Day weekend. The Comptroller lists heat pumps, and water heaters, among the labeled items that stay taxable.
source · verified 26 September 2026
Your electric utility
In the competitive market you choose a retail electricity plan, but the company that delivers the power, named on your bill, runs the efficiency programs. Outside it, the utility that sells you power runs them.
Who gets paid, and how much
The same heat pump earns a homeowner nothing they can count on in Oncor or AEP Texas territory, because the incentive goes to the contractor at a rate the utility does not publish for homeowners. TNMP publishes its rates: up to $2,700 for a heat pump replacing electric heat in a low-income home, again paid to the contractor. Austin Energy and El Paso Electric pay the homeowner.
| Utility | Paid to | Heat pump | Worth knowing |
|---|---|---|---|
| Oncor | The contractor | Not published | 15% more outside the Metroplex; to 4 Dec 2026 |
| CenterPoint (Houston) | Off the invoice | From $200 | 15.2 SEER2 or better |
| AEP Texas | The contractor | Not published | Solar $1,250 to $2,750, +$1,000 battery |
| TNMP | The contractor | $1,400 to $2,700 | Replacing electric heat; like-for-like $50 to $325 a ton |
| Entergy Texas | The distributor | $80 to $1,080 | Three times as much replacing electric heat |
| SWEPCO | In the quote | Up to $3,500 | Through approved contractors |
| El Paso Electric | You | $87 to $343 | $113 to $449 income-qualified |
| Xcel Energy | The provider | Not published | No rebate list for Texas |
| Austin Energy | You | $650 to $950 | $1,000 to $1,600 in Home Energy Savings |
| CPS Energy | You | $90 to $310 a ton | More for replacing a working unit |
source · verified 26 September 2026
Oncor Home Energy Efficiency Program
paid to the provider
Insulation, air sealing, duct sealing and HVAC in Dallas–Fort Worth and beyond. No amount published.
How it works →
CenterPoint Houston programs
from $200
Off the invoice for a high-efficiency system; free weatherization through Houston agencies.
What it offers →
AEP Texas programs
solar $1,250 to $2,750
Paid to contractors; its published rates show what they get for insulation, windows and water heaters.
The rates →
TNMP programs
up to $2,700
The only delivery utility that publishes every rate. Paid to contractors; work done by 30 November 2026.
The rates →
El Paso Electric rebates
$600 evaporative cooler
Mailed to you: heat pumps, water heaters, windows, pool pumps, insulation.
What it pays →
Entergy Texas HVAC
$80 to $1,080
Paid to distributors; tripled for a heat pump replacing electric heat. Free A/C tune-ups.
The table →
SWEPCO Texas
up to $3,500
Heat pumps and air conditioners, in the approved contractor’s quote; free weatherization below the poverty line.
How it works →
Xcel Energy Texas
no amount published
No heat pump or evaporative cooler rebate in Texas, unlike Colorado and New Mexico.
What there is →
Your retail plan is not your utility
TXU, Reliant and the other retail electricity providers sell the power; they do not run these programs. Your bill names the delivery utility, and its program applies whichever plan you are on.
Austin and San Antonio
The two big city-owned utilities run the most generous programs in the state, and pay the homeowner.
Austin Energy rebates
up to $4,000
Solar $4,000, heat pumps $650 to $1,600, heat pump water heaters $1,000, batteries $500 plus yearly payments.
What it pays →
Austin Energy Weatherization
free
For customers in its assistance programs under 80% of median family income: $97,800 for four.
Who qualifies →
CPS Energy rebates
up to $310 a ton
Heat pumps, air conditioners and mini-splits by the ton; attic insulation, cool roofs, pool pumps.
The tiers →
CPS Energy Casa Verde
full cost rebated
Insulation, air and duct sealing, an A/C tune-up and more, under the income line or at a 10% energy burden.
Who qualifies →
Their own pages disagree with them
Austin Energy’s Home Energy Savings page gives its 0% loan an end date of 30 September 2027 at the top and 30 September 2026 lower down (still both on 2 October 2026), and both its equipment pages still point to the ended federal heat pump credit. CPS Energy’s pages give three different pool pump rebates and two different window air conditioner rebates.
source · verified 26 September 2026
Electric co-ops
Co-ops set their own programs, and most of the big ones offer little or nothing.
| Co-op | Heat pump | Worth knowing |
|---|---|---|
| Pedernales Electric Cooperative | none on its website | Contractor sites still advertise a “PEC HVAC rebate” of up to $350 |
| CoServ | none | “Does not currently offer incentives or rebates”; a Nest peak-time credit of $10 a month |
| Bluebonnet Electric Cooperative | none found | Energy-saving tips only |
| GVEC | $650 | Battery rebates from $220 a kW, plus $75 a kW a year |
| United Cooperative Services | $200 | Heat pump water heater $150; $1,200 cap per home |
| Tri-County Electric Cooperative | $200 in bill credits | 16 SEER or better; tune-ups up to $125 |
source · verified 26 September 2026
GVEC rebates
$650 heat pump
Plus $85 for a thermostat and upfront battery payments from $220 a kW.
What it pays →
United Cooperative Services
up to $1,200 a home
$200 heat pumps, $150 heat pump water heaters, half an EV charger up to $250.
What it pays →
Tri-County Electric Cooperative
up to $200
Bill credits for a heat pump, tune-ups and ENERGY STAR products, twice through 2026.
What it pays →
The rebate websites are ahead of the co-ops
Rebate-listing sites credit CoServ with up to $500 for a heat pump; CoServ’s own page says it offers no incentives or rebates, and still describes the federal solar credit as running to 2032. Pedernales’ website mentions no rebate anywhere.
source · verified 26 September 2026
Gas
Gas utilities rebate gas equipment, where they rebate anything.
Which income line applies
Most Texas programs use 200% of the federal poverty guidelines. The city utilities use their own.
| Program | Income test | Family of four | Status |
|---|---|---|---|
| Weatherization Assistance (DOE) | 200% of federal poverty guidelines | $66,000 a year | Open |
| Weatherization Assistance (LIHEAP) | 150% of federal poverty guidelines | $49,500 a year | Open |
| Oncor, AEP Texas and TNMP low-income programs | 200% of federal poverty guidelines | $66,000 a year | Open |
| Austin Energy Weatherization | 80% of median family income, and enrolled in an assistance program | $97,800 a year | Open |
| CPS Energy Casa Verde | Monthly line, or energy bills 10% of income or more | $5,550 a month | Open |
| El Paso Electric income-qualified rebates | Public assistance, or the income form’s limits | On the form | Open |
source · verified 26 September 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.
- HOMES and HEAR — not launched; no approved contractors. Where they stand.
- Texas Gas Service rebates — expired; the Railroad Commission did not approve a new program. What happened.
- CPS Energy Hosted Solar — fully subscribed.
- A “PEC HVAC rebate” and a CoServ heat pump rebate — still advertised by third-party sites; neither co-op lists one.
Not covered yet
The state programs, the eight investor-owned utilities, Austin Energy, CPS Energy, Atmos Energy’s and Texas Gas Service’s offers and six co-ops are here. Still missing:
- The other electric co-ops, including Sam Houston Electric Cooperative, whose website did not answer when this page was written, Farmers Electric, Trinity Valley, Magic Valley and the rest.
- The other city utilities: Lubbock Power & Light, Garland, Denton, Bryan Texas Utilities, New Braunfels Utilities, Georgetown, College Station, San Marcos, Brownsville and more.
- What Oncor, AEP Texas and CenterPoint pay contractors for a new heating and cooling system: none of the three publishes it for homeowners.
- Retail electricity providers’ own offers, which are marketing rather than programs.
- City and county programs, water utilities’ rebates, and PACE financing.
Questions Texans actually ask
Is there a Texas rebate for heat pumps in 2026?
Not from the state. Texas has not launched the federal HOMES and HEAR rebates, and the federal tax credits ended with 2025. What exists comes from your electric utility. Austin Energy pays $650 to $950 for a heat pump, or $1,000 to $1,600 in a whole-home Home Energy Savings project; CPS Energy in San Antonio pays $90 to $310 a ton; El Paso Electric $87 to $343; SWEPCO up to $3,500 through its contractors. Oncor, CenterPoint, AEP Texas and TNMP pay the contractor rather than you.
Has Texas launched the HOMES and HEAR rebates?
No. On 21 August 2026 the Comptroller’s State Energy Conservation Office said both programs were still in planning and design, with a launch date to be set once the Department of Energy approves the state’s plan. Texas was allocated $690 million. There are no approved contractors, and the office advises against signing any agreement tied to HOMES or HEAR before they launch.
Does Oncor give rebates to homeowners?
Not directly. Oncor’s Home Energy Efficiency Program pays approved service providers for the energy an upgrade saves, and its program manual says providers only have to describe the value of the incentive they decide to pass on to the customer. Oncor publishes no per-upgrade amount for homeowners. Ask the provider for the incentive in writing. 2026 applications close on 4 December 2026 or when the money runs out.
Are heat pumps tax-free during the Texas ENERGY STAR sales tax holiday?
No. The Comptroller lists heat pumps and water heaters among the ENERGY STAR items that stay taxable. Air conditioners priced at $6,000 or less qualify, along with refrigerators up to $2,000, ceiling fans, dishwashers, clothes washers, dehumidifiers and light bulbs. The 2026 holiday ran from 23 to 25 May, over Memorial Day weekend.
What free home energy upgrades are there for low-income Texans?
The Weatherization Assistance Program, through a local agency in every county, for households at or under 200% of the federal poverty guidelines: $66,000 a year for a family of four. Oncor, AEP Texas and TNMP run low-income weatherization at the same line. In Austin, Austin Energy weatherizes free for customers in its assistance programs under 80% of median family income; in San Antonio, CPS Energy’s Casa Verde rebates the full cost for households under its income line or with energy bills of 10% or more of income.
Is there a solar rebate in Texas?
Not from the state, though the value solar adds to a home is exempt from property tax if you file Form 50-123 with your county appraisal district between 1 January and 30 April. Austin Energy pays $4,000 for a system over 3 kW. AEP Texas and TNMP pay solar installers $1,250 to $2,750 by system size, and more with a battery. CPS Energy lists no rebate for buying panels.