Arkansas Heat Pump Rebates

What's available in Arkansas

Arkansas is a utility-driven rebate landscape with no active statewide program. SWEPCO offers the most generous confirmed heat pump incentive (up to $2,200/unit in Arkansas, paid at $250-$500 per ton by SEER2 tier or $600/ton for electric-resistance conversions under its 2026 incentive table) plus a $1,150 heat pump water heater incentive. Entergy Arkansas runs a $500 instant in-store rebate on qualifying heat pump water heaters through its Point of Purchase program (distinct from its demand-response Water Heater Pilot, which excludes HPWHs). Rural cooperatives such as Carroll Electric ($400) and North Arkansas Electric (a 1% USDA-funded efficiency loan) layer on smaller rebates and financing. OG&E's Fort Smith HVAC Replacement rebate remains active but its dollar amount is still not published. A previously listed Black Hills Energy heat pump rebate ($1,050) was removed - Black Hills Arkansas is a gas utility offering only gas-equipment rebates. The IRA HEAR/HEEHRA program through the Arkansas Energy Office is still not available in Arkansas as of September 2026 per the Arkansas Energy Office.

HEEHRA in Arkansas

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. Arkansas is finalizing program rules.

How heat pump rebates work in Arkansas

Arkansas has no active statewide heat pump program in 2026 — incentives come almost entirely from utilities and cooperatives, and they vary sharply by service territory. SWEPCO covers the northwest with the most generous confirmed incentive in the state: up to $2,200 per qualifying unit for a high-efficiency heat pump, delivered as a per-ton incentive through approved contractors (note this is the Arkansas amount; SWEPCO's LA/TX territories use a higher $3,500 cap). OG&E's HEEP rebate in Fort Smith covers electric-AC-to-heat-pump retrofits, though OG&E's current per-unit rebate amount isn't published on a readable primary source — verify it directly before relying on a figure. Rural cooperatives like Carroll Electric ($400 per heat pump) and North Arkansas Electric (a 1% USDA-funded efficiency loan) round out the landscape. Note that two programs sometimes listed by aggregators don't hold up: Entergy Arkansas's Water Heater Pilot is a demand-response product that excludes heat pump water heaters (its separate Point of Purchase program does offer a $500 instant Lowe's discount on heat pump water heaters), and Black Hills Energy is a gas utility in Arkansas whose rebates cover gas equipment, not heat pumps.

Arkansas rebate programs

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

A worked example: heat pump retrofit in Bentonville

Jamal owns a 1,650 sq ft home in Bentonville (northwest Arkansas) served by SWEPCO. His electric furnace and central AC are end-of-life. He gets quotes for a 3-ton ducted air-source heat pump (16 SEER2 / 8.5 HSPF2) at $11,200 installed. Because he's in SWEPCO's Arkansas territory and installs a qualifying high-efficiency unit, he's eligible for SWEPCO's HVAC incentive at up to $2,200 per unit, delivered as a per-ton incentive through an approved contractor (built into the contractor's quote). He's outside Entergy and OG&E service areas, so those don't apply, and Black Hills serves only gas customers. His household income is above the threshold for the not-yet-launched Arkansas HEAR program, so no state rebate applies. The federal §25C credit is gone. Because he is replacing an electric furnace, his job falls under SWEPCO's electric-resistance-to-heat-pump conversion tier at $600 per ton, so a 3-ton system earns about $1,800 (a straight AC-to-heat-pump swap at 16 SEER2 would earn only $250 per ton, or $750). Total stack: about $1,800 against an $11,200 install. Net out-of-pocket: about $9,400. Jamal confirms with his contractor at the quote stage that the SWEPCO incentive is included and which efficiency tier his equipment hits, since the per-ton amount scales with the AHRI rating.

Choosing a contractor in Arkansas

Arkansas licenses HVAC contractors through the HVACR Licensing Board (hvacr.arkansas.gov) — Class A unrestricted or Class B restricted. Verify license status before signing. SWEPCO and OG&E HEEP both require the contractor to be approved by the utility for rebate filing; ask your installer 'are you a SWEPCO-approved contractor?' or 'are you set up to file OG&E HEEP?' before signing. North Arkansas Electric Cooperative's low-interest loan program requires a $100 blower-door test before financing — factor that into the timeline if you're using NAEC financing.

Common pitfalls for Arkansas homeowners

• Missing the OG&E 30-day filing window. OG&E Arkansas HEEP requires applications submitted within 30 days of install. Most other utility rebates run 60-90 days. If your contractor is filing on your behalf, confirm submission in writing within the first 2 weeks after install — don't assume 'paperwork is in.' Late applications are denied even if equipment qualifies. OG&E's Arkansas rules also require the installation invoice to be dated between January 1 and November 1 of the program year, so a November or December install may have to wait for the next program year.
• Assuming OG&E HEEP works for newer homes. The OG&E Arkansas Home Energy Efficiency Program (HEEP) heat pump rebate requires the home to have been built before 2016. Newer construction does not qualify regardless of equipment specifications. If your home is 2016 or newer in OG&E Arkansas territory, you may have no utility heat pump rebate available (Black Hills Energy serves gas customers in Arkansas but its rebates cover gas equipment, not heat pumps).

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 Arkansas

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; Arkansas 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 Arkansas 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.

FAQ