Delaware Heat Pump Rebates
Stackable incentives available to Delaware homeowners installing a qualifying heat pump in 2026.
Rebate data is re-verified against primary sources every two months.
What's available in Delaware
Delaware’s heat pump rebate landscape is anchored by Energize Delaware (the Delaware Sustainable Energy Utility), which runs the statewide Home Performance with ENERGY STAR rebate program funded primarily through RGGI proceeds and a Delmarva Power surcharge. Delmarva Power customers access utility heat pump rebates through this same program rather than a separate utility-branded rebate. Delaware Electric Cooperative runs its own 2026 grants for members: up to $3,000 per dwelling for high-efficiency air-source heat pumps (SEER2 18+), up to $7,500 for new geothermal systems, and a $300 heat pump water heater rebate. DEMEC municipal utilities (Newark, Dover, Lewes, Milford, Seaford and others) offer heat pump and heat pump water heater incentives through Efficiency Smart that vary by community. DNREC's federal IRA HEAR/HEEHRA program has still not launched — as of September 2026 DNREC's own page says only that it is expected to launch once funding is received, with a page last updated in October 2024. Treat the $8,000 income-qualified figure as future-state.
HEEHRA in Delaware
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. Delaware is finalizing program rules.
How heat pump rebates work in Delaware
Delaware's heat pump rebate landscape is anchored by Energize Delaware (the Delaware Sustainable Energy Utility), which runs the statewide Home Performance with ENERGY STAR rebate program funded primarily through RGGI proceeds and a Delmarva Power surcharge. Top-tier ducted air-source rebates run up to $1,600 (Tier 2), mini-splits up to $4,000 per HPwES customer. Delmarva Power customers access utility heat pump rebates through this same program rather than a separate utility-branded rebate — Delaware is one of the few states where the dominant electric utility's HVAC rebate is administered through the state efficiency entity rather than the utility directly. Income-qualified households (≤80% AMI, plus Downtown Development District residency or active military/first-responder status) can claim the Assisted HPwES tier at up to $2,200 (Tier 2) with the mini-split cap raised to $5,500. Delaware Electric Cooperative runs its own 2026 grants — up to $3,000 per dwelling for SEER2 18+ air-source heat pumps, up to $7,500 for new geothermal, and $300 for heat pump water heaters — and DEMEC municipal utilities (Newark, Dover, Lewes, Milford, Seaford) run smaller standalone heat pump and HPWH incentives. DNREC's IRA HEAR program (up to $8,000 for income-qualified households) has still not launched as of September 2026 — DNREC's page says only that it will open once federal funding is received, so do not count on it.
Delaware rebate programs
Energize Delaware Home Performance with ENERGY STAR Heat Pump Rebate
$1,600Up to $1,600 for Tier 2 ducted air-source heat pumps (≥17 SEER2, ≥12.0 EER2, ≥8.2 HSPF2); $800 for Tier 1; mini-split rebates $550–$1,100 for the first unit and $350–$550 per additional unit, capped at $4,000 per HPwES customer. Rebates are limited to 50% of installed cost, geothermal is excluded, and a Home Energy Assessment ($50 co-pay; $100 for homes over 3,000 sq ft) by an approved Energize Delaware contractor is required.
Energize Delaware Assisted HPwES Heat Pump Rebate
$2,200Income-qualified households can receive up to $2,200 for Tier 2 ducted heat pumps (≥17 SEER2, ≥12.0 EER2, ≥8.2 HSPF2); $1,200 for Tier 1; mini-splits $1,000–$1,700 for the first unit and $600–$900 per additional unit, capped at $5,500 per Assisted HPwES customer and 75% of installed cost. Eligibility includes income limits, Downtown Development District residency, or active military/first-responder status; the assessment co-pay is $25.
Delaware Electric Cooperative Heat Pump Water Heater Rebate
$300$300 rebate for ENERGY STAR qualified heat pump water heaters for Delaware Electric Cooperative members. Unit must be purchased and installed by 2026-12-31 and the application submitted within 60 days of purchase. Subject to available funding and may end without notice once funds are encumbered.
Delaware Electric Cooperative High Efficiency Air Source Heat Pump Grant
$3,000Delaware Electric Cooperative members can get $500 per ton (up to $1,500 per dwelling) for air-source heat pumps rated SEER2 18.0 or higher, $750 per ton (up to $2,250) at SEER2 20.0+, and $1,000 per ton (up to $3,000) at SEER2 22.0+. Ducted split, ductless mini-split and multi-zone systems qualify for new construction or replacement; an AHRI certificate and a 5-year parts-and-labor warranty are required. Funding is limited and paid on a rolling first-come basis for calendar 2026; applications not funded in 2026 are not carried into 2027.
Delaware Electric Cooperative Geothermal Heat Pump Grant
$7,500Delaware Electric Cooperative members installing a new geothermal heat pump (EER 18.0+ and COP 3.6+) can get $1,500 per ton up to $7,500 per dwelling; replacement geothermal systems get $500 per ton up to $1,500. Installation must be by a DNREC-approved contractor with Manual J sizing, an AHRI certificate and a 5-year warranty. Funding is limited, paid on a rolling basis for 2026, and amounts can change year to year.
Energize Delaware HPwES Heat Pump Water Heater Rebate
$1,350$1,100 for a heat pump water heater installed through the Home Performance with ENERGY STAR program, or $1,350 for Assisted HPwES (income-qualified, Downtown Development District, military or first-responder) customers. Rebates are capped at 50% of installed cost (75% for Assisted) and require the program Home Energy Assessment and an approved Energize Delaware contractor. Funds are first-come, first-served while they last.
4 utility-specific programs not shown here. Enter your ZIP in the calculator to filter to just your utility.
A worked example: mini-split retrofit in Newark
Hannah owns a 1,400 sq ft home in Newark, currently heated by a 30-year-old oil furnace with no central AC. She's a Delmarva Power electric customer for electric service and Delaware Sustainable Energy Utility for efficiency programs (same address, different administrative paths). She gets quotes for a 2-ton ductless mini-split system (three indoor heads, NEEP cold-climate certified) plus retention of the oil furnace as backup for cold snaps. Installed cost: $13,500. Because mini-splits cap at $4,000 per HPwES customer at the standard tier, she qualifies for $4,000 in Energize Delaware rebate at the standard income tier (assuming household income above 80% AMI). She's required to complete a Home Energy Assessment by an approved Energize Delaware contractor as a prerequisite — that's a $50 co-pay ($100 only for homes over 3,000 sq ft) typically rolled into the project. The Newark Municipal Electric Department (DEMEC) layers a small additional rebate (verify current amount), and the Newark-specific Downtown Development District designation would qualify her for the $5,500 Assisted tier if her household income drops below 80% AMI in a future year. Combined stack at the standard tier: $4,000 against $13,500. Net out-of-pocket: $9,500.
Choosing a contractor in Delaware
Delaware licenses HVAC contractors through the Delaware Division of Professional Regulation — verify license status before signing. Energize Delaware HPwES rebates require an approved Energize Delaware contractor; the contractor schedules the prerequisite Home Energy Assessment, files the rebate paperwork, and handles the documentation flow with the Delaware Sustainable Energy Utility. A non-approved contractor cannot file HPwES rebates. The approved contractor list is on energizedelaware.org. For DEMEC municipal customers (Newark, Dover, Lewes, Milford, Seaford), the muni's own efficiency program may have a separate approved contractor list — confirm at the quote stage.
Common pitfalls for Delaware homeowners
- Skipping the Home Energy Assessment prerequisite. Energize Delaware HPwES rebates require a Home Energy Assessment by an approved Energize Delaware contractor before the install. A homeowner who installs equipment first and applies for the rebate afterward will be denied. The assessment co-pay is $50 ($100 for homes over 3,000 sq ft, $25 for Assisted-tier households) and typically rolled into the project quote — confirm with your contractor that it's scheduled before equipment is ordered.
- Confusing Delmarva Power and Delaware Electric Cooperative. Delmarva Power serves roughly two-thirds of Delaware (most of New Castle County, most of Kent County, and Sussex County). Delaware Electric Cooperative serves a chunk of southern Delaware and rural pockets. The two utilities have different rebate paths — Delmarva customers use Energize Delaware HPwES, DEC members use the cooperative's own rebate program. Check your monthly electric bill to confirm which utility serves your address.
Estimate your net cost
Used to determine HEEHRA eligibility (under 80% area median income).
- Delaware Electric Cooperative High Efficiency Air Source Heat Pump Grant−$3,000
- Energize Delaware Home Performance with ENERGY STAR Heat Pump Rebate−$1,600
- Energize Delaware HPwES Heat Pump Water Heater Rebate−$1,350
- Delaware Electric Cooperative Heat Pump Water Heater Rebate−$300
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.
If you can't afford a replacement in Delaware
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; Delaware 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 Delaware 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.