Arkansas Heat Pump Rebates
Stackable incentives available to Arkansas homeowners installing a qualifying heat pump in 2026.
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). Rural cooperatives such as Carroll Electric ($400) and North Arkansas Electric (a 1% USDA-funded efficiency loan) layer on smaller rebates and financing. Note: a previously listed Entergy Arkansas heat pump water heater rebate ($500) and a Black Hills Energy heat pump rebate ($1,050) were removed — neither appears on the utilities' current rebate pages (Entergy's water-heater program is now a demand-response product that excludes HPWHs, and Black Hills Arkansas is a gas utility offering only gas-equipment rebates). The IRA HEAR/HEEHRA program through the Arkansas Energy Office had not launched as of mid-2026.
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 program is now a demand-response product that excludes 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
SWEPCO HVAC Incentive (Heat Pump)
$2,200Up to $2,200 per qualifying unit for high-efficiency heat pumps in SWEPCO Arkansas territory (the higher $3,500 cap applies only in SWEPCO's LA/TX territories). Structured as a per-ton incentive delivered through approved HVAC contractors.
OG&E Arkansas Home Energy Efficiency Program (HEEP) Heat Pump Rebate
$3,000OG&E's Arkansas HEEP supports retrofitting existing single-family homes from electric AC to a high-efficiency heat pump (Fort Smith service area). The current per-unit rebate amount could not be confirmed against an OG&E primary source as of June 2026 (program portal not publicly readable) — verify the exact amount with OG&E before relying on it; the "$3,000" shown reflects prior reporting.
Carroll Electric Cooperative Heat Pump Rebate
$400$400 rebate per qualifying heat pump (central or mini-split meeting current federal minimum efficiency standards) for Carroll Electric residential members in NW Arkansas / SW Missouri. Maximum 2 rebates per membership. Issued as check or bill credit. Program year July 1 – June 30, dependent on funding.
North Arkansas Electric Cooperative Energy Efficiency Loan
$20,000Low-interest loan (1% as of 2023, subject to change) up to $20,000 for heat pumps, insulation, ENERGY STAR doors/windows, high-efficiency water heaters, and weatherization. Funded via USDA Rural Energy Savings Program. Up to 8-year term for ASHP/mini-split, 10-year for geothermal. SEER ≥14, HSPF ≥8.2 required; $100 blower-door test required.
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. Total stack: up to $2,200 against an $11,200 install. Net out-of-pocket: about $9,000. 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.
- 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
Used to determine HEEHRA eligibility (under 80% area median income).
- OG&E Arkansas Home Energy Efficiency Program (HEEP) Heat Pump Rebate−$3,000
- SWEPCO HVAC Incentive (Heat Pump)−$2,200
- Carroll Electric Cooperative Heat Pump Rebate−$400
Estimate only. Includes only programs accepting applications today — waitlisted or closed programs are excluded. Mutually exclusive programs (e.g. HEEHRA vs HOMES) and project-cost caps are applied per current program rules; confirm with your installer and utility before signing.
How to claim each rebate
- Get pre-approved (where required). Some utility programs require approval before install. Check program details before signing a contract.
- 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.
- Save documentation. AHRI certificate, model numbers, and itemized invoice are required for most utility rebates.
- 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.