Arizona Heat Pump Rebates

What's available in Arizona

Arizona income-qualified households can stack the state-administered Efficiency Arizona HEAR program (up to $8,000 toward heat pumps, inside a $14k whole-home cap) with utility rebates. Non-income-qualified households rely on utility rebates only — APS ended its residential HVAC rebates effective 2026-01-01 (ACC Decision 81584), so SRP Cool Cash is the largest open utility incentive in 2026. UniSource Energy Services (UES) covers rural areas including Flagstaff and Kingman. With no federal §25C heat pump tax credit available in 2026, federal stacking does not apply (the §25D geothermal credit, 30% through 2032, still applies to ground-source installs).

HEEHRA in Arizona

HEEHRA rebate: Point-of-sale rebate up to $8,000 for households at or below 80% of area median income. Funded by the IRA, administered by each state. Arizona is finalizing program rules.

How heat pump rebates work in Arizona

Arizona's 2026 heat pump incentive picture shifted significantly when APS ended its residential HVAC rebates effective January 1, 2026 (Arizona Corporation Commission Decision 81584). The legacy AC Upgrade Rebate is closed; APS Cool Rewards demand-response for smart thermostats remains active but pays only about $85 in the first year and isn't a heat pump rebate. That makes SRP Cool Cash the largest open utility rebate for non-income-qualified Arizona households — tiered per ton by compressor type up to $1,125 for a 5-ton variable-capacity install. TEP customers in Tucson get up to $720 through the Efficient Home Program, and UniSource Energy Services (TEP's sister utility under UNS Energy) offers up to $450 for customers in Flagstaff, Kingman, Douglas, Nogales, and other rural service areas through the same Franklin Energy-administered program. Income-qualified households are the bigger story: Efficiency Arizona's HEAR program through the Governor's Office of Resiliency launched at scale in 2026 with up to $8,000 toward a heat pump inside a $14,000 whole-home cap, 100% of project cost up to $14k for households below 80% AMI, 50% for 80-150% AMI. No federal §25C in 2026 — that credit expired December 31, 2025.

Arizona rebate programs

5 utility-specific programs not shown here. Enter your ZIP in the calculator to filter to just your utility.

A worked example: replacing a Phoenix AC + electric strip heat

Carlos owns a 2,200 sq ft single-family home in central Phoenix served by SRP. His 18-year-old central AC with electric resistance auxiliary heat is failing. He gets quotes for a 4-ton ducted variable-capacity heat pump (Carrier Greenspeed, 19 SEER2 / 9.5 HSPF2) installed for $14,800. Because Phoenix uses cooling far more than heating, the heat pump is essentially a high-efficiency AC that incidentally provides heat — the right play for the climate. SRP Cool Cash at $225/ton for variable-capacity systems pays $900 for his 4-ton system. His household income is approximately 110% of Maricopa County AMI — eligible for Efficiency Arizona HEAR's moderate-income tier (80-150% AMI), which covers 50% of project cost up to $14,000 whole-home. With the heat pump as the only HEAR-eligible measure, his HEAR rebate is 50% of $14,800 = $7,400, capped well under the $14,000 ceiling. Combined: $900 SRP + $7,400 HEAR = $8,300 in rebate stack against a $14,800 install. Net out-of-pocket: roughly $6,500.

Choosing a contractor in Arizona

Arizona licenses HVAC contractors through the Arizona Registrar of Contractors (ROC) under classifications C-39 (Air Conditioning) and C-40 (Refrigeration). Verify ROC license status at azroc.gov before signing — license number, expiration date, and bond status are public. Efficiency Arizona HEAR requires a registered contractor enrolled with the program; the contractor processes the rebate at point of sale through the program portal and the discount appears on the invoice. SRP Cool Cash requires an SRP-registered contractor and rebate filing within 6 months of install. TEP and UniSource Energy Services (UES) Efficient Home Program rebates require a participating contractor from the same Franklin Energy network — UES covers Flagstaff, Kingman, Douglas, and other rural areas. Ask 'are you enrolled with [program name]?' for each rebate you're counting on — a non-enrolled contractor cannot file after the fact.

Common pitfalls for Arizona homeowners

• Counting on the APS rebate that ended January 1, 2026. The APS AC Upgrade Rebate is closed for 2026 installs. Several Phoenix-area HVAC contractor sites and aggregator pages still reference the legacy $800 figure. ACC Decision 81584 ended residential HVAC rebates at APS effective January 1, 2026 — confirm with APS directly before relying on any APS HVAC rebate amount in a contractor's proposal.
• SRP Cool Cash 2026 program window. SRP Cool Cash equipment installation deadline is April 30 of each program year. Late-season installs (May through October) typically rely on the following program year's funding. Confirm program-year status with your SRP-registered contractor before signing a contract that depends on the rebate.

Estimate your net cost

How to claim each rebate

1. Get pre-approved (where required). Some utility programs require approval before install. Check program details before signing a contract.
2. Use a participating contractor. Many programs require a licensed installer from an approved contractor list — especially HEEHRA, which routes through CEC-approved contractors who process the rebate at point of sale.
3. Save documentation. AHRI certificate, model numbers, and itemized invoice are required for most utility rebates.
4. Submit utility rebate within 60–90 days of install. Some programs are first-come first-served and close mid-year — funding can run out before the calendar year does.

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