Idaho Heat Pump Rebates
Stackable incentives available to Idaho homeowners installing a qualifying heat pump in 2026.
Rebate data is re-verified against primary sources every two months.
In plain terms
A typical Idaho homeowner can get up to $3,150 back from one program that is open right now.
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What's available in Idaho
Idaho's heat pump incentive landscape is utility-driven rather than state-funded. Idaho Power and Rocky Mountain Power (via Wattsmart) run the two largest programs, from $400 for a ductless unit up to $3,000 for ground-source systems. Municipal Idaho Falls Power pays up to $2,400 for an air-source conversion, $1,600 for ductless and $3,150 for ground-source, or a zero-interest loan of up to $10,000 instead of the rebate. Avista, in north Idaho, offers $300-$600 heat pump discounts that go to the contractor at purchase, so ask your installer to pass the discount on. The Governor's Office of Energy and Mineral Resources supplements these with low-interest energy efficiency loans (applications close when funds run out or December 31, 2026) rather than direct state rebates. Idaho's IRA-funded HEAR/HOMES rebates are not coming: the Joint Finance-Appropriations Committee voted on March 19, 2025 to reject the federal funding, and OEMR states on its own site that rebates are not currently available. The practical 2026 stack for Idahoans is utility-only.
HEEHRA in Idaho
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. Idaho is finalizing program rules.
How heat pump rebates work in Idaho
Idaho's heat pump incentive landscape is utility-driven rather than state-funded — there is no statewide tax credit or rebate. Idaho Power, Rocky Mountain Power and municipal Idaho Falls Power offer heat pump rebates, and Avista offers contractor-level heat pump discounts in north Idaho, ranging from a few hundred dollars for ductless units to about $3,000 for ground-source systems. Idaho Power's ducted ASHP rebate is a flat $800 for existing-home installs (minimum 8.5 HSPF / 7.2 HSPF2, maximum two per home) — the older $500-$1,000 tiered structure is gone — alongside a separate $400 ductless rebate (one per home) and a $3,000 geothermal rebate. Avista's heat pump incentive in Idaho is a discount of $300-$600 per air-source or mini-split heat pump, by efficiency tier, paid to the contractor when they buy qualifying equipment; the contractor may choose to pass it on, so ask for it on your quote. Idaho Falls Power pays up to $2,400 for converting an electric furnace to a variable-speed air-source heat pump, $1,600 for ductless and $3,150 for ground-source, or offers a zero-interest loan of up to $10,000 instead. Rocky Mountain Power's Wattsmart program pays up to $650 for an air-source heat pump conversion (or $450 for upgrading an existing heat pump) and up to $2,000 for a ground-source heat pump conversion ($1,500 for upgrading from ASHP to GSHP), all requiring the system serve at least 80% of conditioned space (rate schedules 1 or 36). The Governor's Office of Energy and Mineral Resources supplements these with low-interest energy efficiency loans rather than direct state rebates. Idaho is not launching the IRA-funded HEAR/HOMES rebates: the Legislature's Joint Finance-Appropriations Committee voted on March 19, 2025 to reject the federal funds, and OEMR states rebates are not currently available, so practical 2026 incentives are utility-only. Households are served by exactly one electric utility — Idaho Power and Rocky Mountain Power are mutually exclusive by service territory.
Idaho rebate programs
Idaho Power Ducted Air-Source Heat Pump Rebate (Existing Homes)
$800Flat $800 for a qualifying ducted air-source heat pump in an existing home (minimum 8.5 HSPF / 7.2 HSPF2), replacing an electric forced-air furnace, electric baseboard/ceiling cable/wall units, or a propane or oil furnace where natural gas is unavailable. Homes heated with natural gas do not qualify. Maximum two incentives per home; supplemental heat must be electric and a participating contractor is required.
Idaho Power Ground-Source (Geothermal) Heat Pump Rebate
$3,000$3,000 for a ground-source heat pump (minimum 3.5 COP) replacing an electric forced-air furnace, electric baseboard/ceiling cable/wall units, or a propane or oil furnace in an existing Idaho Power home; $1,000 if you are replacing an existing air-source heat pump. Maximum one incentive per home. The federal §25D 30% residential clean energy credit was repealed effective December 31, 2025 and no longer applies to 2026 geothermal installs.
Rocky Mountain Power Wattsmart Air-Source Heat Pump Rebate
$650Up to $650 for converting from electric resistance heat to an air-source heat pump ($450 for upgrading an existing heat pump to a cold-climate model). Must be the primary heat source serving at least 80% of conditioned space. Available to Idaho residential customers on rate schedules 1 or 36.
Rocky Mountain Power Wattsmart Ground-Source Heat Pump Rebate
$2,000Up to $2,000 for converting from electric resistance heat to a ground-source heat pump ($1,500 for upgrading from an existing air-source heat pump). Minimum 3.5 COP, 16 EER open or closed loop. Must serve 80% of conditioned space.
Idaho Power Ductless Heat Pump Rebate (Existing Homes)
$400Flat $400 for a ductless (mini-split) heat pump in an existing home, minimum 9 HSPF / 7.6 HSPF2, replacing electric baseboard, ceiling cable, or wall-unit primary heat. Maximum one incentive per home. Separate program page and amount from Idaho Power's ducted rebate.
Idaho State Energy Loan Program (OEMR)
$40,000State-run low-interest loan of up to $40,000 for energy efficiency and renewable projects in single-family homes, including heat pumps and geothermal. Terms are 3% for 3 years, 5% for 5 years, or 7% for 7 years; the loan must be secured with real estate and is reviewed for creditworthiness by a partner financial institution. A registered or licensed contractor is required. Applications are accepted by mail or email to OEMR on a first-come, first-served basis until funds run out or December 31, 2026, whichever comes first.
Idaho Falls Power Air-Source Heat Pump Rebate
$2,400$2,400 for converting an electric forced-air furnace to a variable-speed air-source heat pump ($2,000 for a standard air-source heat pump; $540 for upgrading an existing heat pump to variable-speed). Instead of the rebate, qualifying customers can take a zero-interest loan of up to $10,000 for up to 60 months ($25 administration fee), which requires 12 months of payment history with no late payments in the past year. Idaho Falls Power electric customers only.
Idaho Falls Power Ductless Heat Pump Rebate
$1,600$1,600 for a ductless heat pump replacing zonal electric heat or an electric forced-air furnace. Instead of the rebate, qualifying customers can take a zero-interest loan of up to $10,000 for up to 60 months ($25 administration fee) with 12 months of payment history and no late payments in the past year. Idaho Falls Power electric customers only.
Idaho Falls Power Ground-Source Heat Pump Rebate
$3,150$3,150 for a ground-source heat pump upgrade or conversion with a desuperheater ($2,700 without one; $450 for a compressor-only replacement). Instead of the rebate, qualifying customers can take a zero-interest loan of up to $10,000 for up to 60 months ($25 administration fee) with 12 months of payment history and no late payments in the past year. Idaho Falls Power electric customers only.
Avista Heat Pump Discount (Idaho, contractor-level)
$600Midstream discount on air-source or mini-split heat pumps under 5.4 tons: $300 (Tier 1, 15.2 SEER2 / 8.1 HSPF2), $400 (Tier 2, 15.2 SEER2 / 8.5 HSPF2) or $600 (Tier 3, 16.0 SEER2 / 9.5 HSPF2). The discount goes to the contractor when they buy qualifying equipment, and the contractor may choose to pass it on, so ask for it on your quote. Equipment must run on Avista electric service.
10 utility-specific programs not shown here. Enter your ZIP in the calculator to filter to just your utility.
A worked example: geothermal retrofit in Boise
Hannah owns a 2,200 sq ft home on a half-acre lot in north Boise, served by Idaho Power. Her 24-year-old electric forced-air furnace and AC are both end-of-life. With substantial yard space available for a horizontal-loop geothermal field, she gets quotes for a 4-ton closed-loop ground-source heat pump (WaterFurnace 7 Series, 41 EER / 5.3 COP, ENERGY STAR certified). Installed cost including the loop field: $36,000. Because she is replacing an electric forced-air furnace, she qualifies for Idaho Power's full $3,000 ground-source rebate. The federal §25D residential clean energy credit that used to cover 30% of geothermal cost was repealed effective December 31, 2025, so her 2026 install gets no federal tax credit. Combined: $3,000 utility rebate against $36,000 installed. Net effective cost: $33,000. Operating-cost savings over her old electric furnace are typically $1,200-$1,800/year in Boise's climate, so, with no federal credit, the geothermal premium pays back over roughly 15-20 years on operating savings alone before factoring in HVAC equipment lifespan (geothermal systems regularly run 25+ years vs. 12-18 for ASHP).
Choosing a contractor in Idaho
Idaho doesn't have a statewide HVAC contractor license — licensing is municipal. Boise, Meridian, Idaho Falls, and Coeur d'Alene each have their own permit-pulling requirements. Verify the contractor with the local building department where the install will happen. Idaho Power and Rocky Mountain Power both require approved contractor lists for their rebate programs; ask your installer 'are you an Idaho Power Energy Efficiency Trade Ally?' before signing. The contractor lists are on each utility's website. For geothermal installs specifically, look for an IGSHPA (International Ground Source Heat Pump Association) accredited installer — the loop-field design and grouting matter significantly for system longevity and performance.
Common pitfalls for Idaho homeowners
- Assuming standard ASHPs work for full-load Idaho winters. Boise's design temperature is 13°F; Idaho Falls drops to -10°F. A standard (non-cold-climate) heat pump loses substantial capacity at those temperatures, requiring oversized auxiliary resistance heat that drives operating costs up. For full-load winter heating in Idaho, NEEP cold-climate certified equipment with ≥70% capacity retention at 5°F is essentially required. Idaho Power's rebates are flat amounts with a modest efficiency floor (7.2 HSPF2 ducted, 7.6 HSPF2 ductless) and don't require cold-climate certification — the homeowner has to ask for it. Rocky Mountain Power's $450 tier does require a NEEP-listed cold-climate unit.
- Mixing up rate schedules or system types for Rocky Mountain Power Wattsmart. Rocky Mountain Power's Wattsmart rebates are available to residential customers on rate schedules 1 or 36 — but not other schedules. The amounts also vary significantly by system type: air-source heat pumps qualify for $450-$650, while ground-source heat pumps qualify for $1,500-$2,000. Confirm your rate schedule on a recent bill and match the correct system type before budgeting.
Estimate your net cost
Used to determine HEEHRA eligibility (under 80% area median income).
- Idaho Falls Power Air-Source Heat Pump Rebate−$2,400
- Rocky Mountain Power Wattsmart Air-Source Heat Pump Rebateexcluded — other utility's customers only
- Idaho Power Ducted Air-Source Heat Pump Rebate (Existing Homes)excluded — other utility's customers only
- Avista Heat Pump Discount (Idaho, contractor-level)excluded — other utility's customers only
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 Idaho
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; Idaho 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 Idaho 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.