Austin Energy HVAC Rebates: How to Get Up to $1,500 Back
Updated January 2026
Austin Energy offers homeowners up to $1,500 for qualifying high-efficiency AC and heat pump installations — the most generous municipal utility rebate in Texas. Oncor (Dallas) maxes out around $500. CenterPoint (Houston) tops at $1,200. Combined with federal tax credits (up to $2,000 for heat pumps), total savings can reach $2,500–$3,500 on a single installation.
Estimated Rebate Amounts
| System Type | Estimated Rebate |
|---|---|
| Central AC (14.3–15.9 SEER2) | $200–$600 |
| Central AC (16–17.9 SEER2) | $600–$1,000 |
| Heat pump (any qualifying SEER2) | $800–$1,500 |
Exact amounts vary by program year and available funding. Contact Austin Energy directly for current figures.
What Qualifies
- • Must be an Austin Energy customer (check your electric bill)
- • Replacing an existing system (not new construction)
- • New system must meet minimum SEER2 requirements
- • Installation by a licensed HVAC contractor
- • Heat pumps qualify for the highest rebate tier
Stacking With Federal Credits
Heat pumps qualify for the $2,000 federal tax credit (Section 25C). Standard AC: up to $600 federal credit. Stack Austin Energy + federal for maximum savings:
Why Heat Pumps Get the Biggest Rebates
Austin Energy incentivizes heat pumps because they reduce peak grid demand. Heat pumps are 3x more efficient than gas furnaces for heating and eliminate the need for a separate gas infrastructure. Austin's mild winters (average low 40°F) make heat pumps viable year-round without backup heat. The city wants to reduce natural gas dependence — and they're willing to pay homeowners up to $1,500 to make the switch.
Application Tips
Apply early in the year
Rebate funding is annual and can run out. Install in spring for best availability.
Confirm Austin Energy is your provider
Some Austin-area addresses are served by Pedernales Electric Co-op or other providers. Check your bill — Austin Energy must be listed.
Your contractor handles the paperwork
Most Austin Energy participating contractors submit the rebate application on your behalf. Confirm this before signing.
Find a Rebate-Qualified Austin Contractor
How This Works
1. Tell us what you need. Fill out the form above — takes 30 seconds.
2. We find the right fit. We pick one AC company that fits your job and budget.
3. They call you. One company. One call. They give you a price. No obligation.
Your info goes to one company. Not six. How it works →