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, but since 2026-09-01 HEAR only funds heat pumps that replace existing electric equipment; gas-to-electric conversions no longer qualify. Non-income-qualified households rely on utility rebates: APS ended its main HVAC rebates effective 2026-01-01 (ACC Decision 81584) and now advertises only a $200 AC Upgrade Rebate, so SRP Cool Cash (up to $1,125, install deadline April 30, 2027) is the largest open utility incentive. TEP, UniSource Energy Services (Flagstaff, Kingman, Nogales), SSVEC and Mohave Electric offer smaller co-op and utility rebates. With no federal §25C or §25D heat pump tax credit available in 2026 (both were repealed by the One Big Beautiful Bill Act effective December 31, 2025), federal stacking does not apply.

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. One catch as of September 1, 2026: HEAR no longer funds gas-to-electric conversions, so the heat pump rebate only applies when you are replacing existing electric heating or cooling equipment. 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 legacy $800 APS AC Upgrade Rebate is gone; APS's site now advertises a much smaller $200 AC Upgrade Rebate (up to $1,200 for Energy Support customers) while still stating the prior AC rebate ended January 1, 2026. 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 runs on a program year that ends April 30; the current window has an installation deadline of April 30, 2027, and the rebate must be submitted within 6 months of installation. SRP has rolled the program over each spring, but funding for the next program year is not guaranteed. 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.

If you can't afford a replacement in Arizona

Rebates lower the price, but they still assume you can pay the rest. If your heating system is unsafe or has failed and a new one is out of reach, these programs repair or replace equipment at low or no cost for income-qualified households. Heat Pump Pricing Index is an independent information site — we don't fund, discount, or install equipment — so these are the doors to knock on first:

• Weatherization Assistance Program (WAP). Free energy and health-and-safety repairs — an unsafe furnace is exactly the kind of problem it fixes — for households at or near 200% of the poverty line. Apply through your local community action agency: how to apply (energy.gov).
• LIHEAP. Heating-bill help plus, in most states, a crisis component for broken or dangerous heating equipment. Same local agency; Arizona LIHEAP contacts.
• USDA Section 504 Home Repair. For homeowners outside cities: 1% loans up to $40,000, and grants up to $10,000 for homeowners 62 and older to remove health and safety hazards. Program page and state offices (rd.usda.gov).
• Your utility and 211. Most electric and gas utilities run an income-qualified assistance fund — call the number on your bill and ask. Dialing 211 reaches a local specialist who knows which agencies in Arizona currently have funds.

Safety first: if a technician has told you a heat exchanger is cracked, stop using the furnace and make sure you have a working carbon monoxide detector before anything else.

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