The AC and heat pump rebate
Austin Energy’s AC rebate page, reviewed February 24, 2026, says the rebate averages $800 when a participating contractor installs a qualifying system. The amount depends on the tier the system’s ratings meet. Austin Energy’s tiers cover central split systems and mini-splits in both AC and heat pump versions, and heat pumps must also meet a set of equipment requirements called CEE 2025 specifications.
| Tier | SEER2 | EER2 | Rebate |
|---|---|---|---|
| Tier 1 | 15.2 | 12.0 | $600 |
| Tier 2 | 17.0 | 12.0 | $700 |
| Tier 3 | 18.0 | 13.0 | $800 |
| Tier | SEER2 | EER2 | HSPF2 | Rebate |
|---|---|---|---|---|
| Tier 1 | 15.2 | 11.0 | 7.8 | $650 |
| Tier 2 | 16.0 | 11.0 | 8.0 | $750 |
| Tier 3 | 17.0 | 13.0 | 9.0 | $950 |
Who qualifies
Austin Energy lists these rules on the same page.
- You get your electricity from Austin Energy.
- An Austin Energy participating contractor installs the system and submits the application within 90 days.
- The system being replaced is 10 years old or older, and so is your home.
- Every component is replaced, including the condenser, the furnace or air handler, and the coil.
- The equipment is sized using a Manual J load calculation, ACCA’s method for determining the home’s heating and cooling needs, or Austin Energy’s own sizing guidance. It comes with an AHRI certificate showing the certified rating of the matched indoor and outdoor pair.
- All required City of Austin permits are in place.
- You agree to a post-installation inspection by Austin Energy.
- Systems with electric resistance heating elements don’t qualify.
Home Energy Savings
Austin Energy’s Home Energy Savings bundles at least three upgrades through a participating contractor and starts with a no-cost energy assessment. Its AC rebate is $950, $1,200, or $1,450 by tier, and its heat pump rebate is $1,000, $1,300, or $1,600. Home Energy Savings also counts duct work at $3.25 per linear foot for duct replacement, $1.00 per linear foot to insulate existing duct, $0.20 per square foot of floor area for duct sealing, and $175 on the first system for a total external static pressure test, which measures how much resistance the blower pushes against.
Homes with spray foam insulation aren’t eligible for Home Energy Savings. Joining Home Energy Savings within six months after an AC rebate can add $200. Austin Energy’s program document also exempts a City of Austin seller from the Energy Conservation Audit and Disclosure reporting requirements.
Weatherization Assistance
Austin Energy’s Weatherization Assistance program makes free improvements for income-qualified customers, including repairing, replacing, and sealing ducts. As of March 7, 2025, Austin Energy says eligible households must be enrolled in the Customer Assistance Program or the Medically Vulnerable Registry and meet the 80% Median Family Income requirement.
Outside Austin Energy
Texas Gas Service says its energy efficiency program has expired and rebates are no longer offered after the Railroad Commission of Texas didn’t approve a new program. As of October 2026, Pedernales Electric Cooperative’s website lists no HVAC rebate, and Bluebonnet Electric Cooperative’s energy solutions page lists none either. The City of Georgetown’s electric utility lists HVAC tune-up and home energy audit programs. Outside Austin Energy, you pay the new system’s price, and any payback from efficiency comes only through the electric bill.
The federal tax credit
The IRS says the Energy Efficient Home Improvement Credit (25C) isn’t allowed for property placed in service after December 31, 2025, under the 2025 law known as the One Big Beautiful Bill Act. Pages that still describe the credit, including some ENERGY STAR pages, predate that change.
Before you count on a rebate
Austin Energy says on its AC rebate page that funding is limited, first-come, first-served, and subject to change without notice. Dates on its Home Energy Savings page don’t line up with its review date. Confirm the current terms before you count on a number.
Sources
- Austin Energy, “Air Conditioning”, reviewed February 24, 2026
- Austin Energy, “Home Energy Savings”, reviewed September 2, 2025
- Austin Energy, “Weatherization Assistance”, reviewed October 1, 2026
- Austin Energy, “ECAD: Sellers”, reviewed March 14, 2025
- Texas Gas Service, “Energy Efficiency Program”
- Pedernales Electric Cooperative, “Search results for rebate”, checked October 8, 2026
- Bluebonnet Electric Cooperative, “Energy solutions”, checked October 8, 2026
- City of Georgetown, “Georgetown Electric Utility”
- IRS, “FAQs for modification of sections 25C, 25D, 25E, 30C, 30D, 45L, 45W, and 179D under Public Law 119-21”, FS-2025-05, August 21, 2025