Kentucky Heat Pump Rebates
Stackable incentives available to Kentucky homeowners installing a qualifying heat pump in 2026.
Rebate data is re-verified against primary sources every two months.
What's available in Kentucky
Kentucky runs a patchwork of utility-driven heat pump rebates rather than a single statewide program. The largest investor-owned utilities all offer residential heat pump rebates: LG&E/KU pay a flat $400, Kentucky Power pays $400-$500 by efficiency tier, and Duke Energy Kentucky pays $500 for a heat pump upgrade or up to $1,000 for a strip-heat conversion. TVA EnergyRight covers western Kentucky co-op territories (West Kentucky RECC, Pennyrile, Kenergy) with $500-$800 by SEER2 tier, and East Kentucky Power Cooperative's 16 Touchstone Energy co-ops pay $750-$1,000 for electric-resistance-to-heat-pump retrofits. The state-administered IRA Home Energy Rebates program at energyrebates.ky.gov is still not open for applications as of September 2026; it remains at the DOE plan-approval stage with no launch date or final rebate amounts. Utility and co-op rebates are the only 2026 incentives in Kentucky.
HEEHRA in Kentucky
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. Kentucky is finalizing program rules.
How heat pump rebates work in Kentucky
Kentucky runs a robust patchwork of utility-driven heat pump rebates rather than a single statewide program. The largest investor-owned utilities (LG&E and KU jointly, Duke Energy Kentucky, Kentucky Power) all offer residential heat pump rebates, and TVA EnergyRight covers western Kentucky co-op territories with rebates of $500 (15-16.99 SEER2) or $800 (17 SEER2 and up) for air-source heat pumps, $800 for ductless mini-splits and $1,500 for geothermal. Several rural electric cooperatives — Kenergy, Pennyrile RECC, West Kentucky RECC — layer additional SEER-tiered rebates on top. Duke Energy Kentucky offers the most generous structure for strip-heat-to-heat-pump conversions: $1,000 at the higher-efficiency tier ($600 at the standard tier) for replacing electric resistance heat. The state-administered IRA Home Energy Rebates program at energyrebates.ky.gov is established but still not open for applications as of September 2026; it remains at the DOE plan-approval stage with no launch date announced. Kentucky utilities serve mutually exclusive territories — LG&E/KU central, Duke KY northern, Kentucky Power eastern, TVA west — so a typical Kentucky homeowner stacks one utility rebate plus (where applicable) a co-op rebate, not multiple utility rebates.
Kentucky rebate programs
LG&E and KU Residential Heat Pump Rebate
$400Cash rebate for residential customers installing a qualifying ENERGY STAR central air-source or ductless heat pump; must be installed by a licensed contractor.
Duke Energy Kentucky Smart $aver Heat Pump Rebate (HVAC Upgrade)
$500Rebate for upgrading an existing heat pump to a qualifying high-efficiency heat pump; requires a Home Energy Check within 24 months and Duke Energy Kentucky residential electric service.
Duke Energy Kentucky Strip Heat to Heat Pump Conversion Rebate
$1,000Higher-efficiency tier rebate for converting an existing electric strip-heat system to a qualifying heat pump; a $600 tier is also available for the standard high-efficiency option.
Duke Energy Kentucky Heat Pump Water Heater Rebate
$800Up to $800 for an 80-gallon hybrid heat pump water heater or $500 for a 50-gallon unit; eligibility requires a qualifying Home Energy Check recommendation.
Kentucky Power High Efficiency Heat Pump Program
$500Kentucky Power's EnergyAdvantage at Home program (run by TRC) pays $400 for an ENERGY STAR air-source heat pump at 15.2 SEER2 / 7.8 HSPF2 and $500 at 16.2 SEER2 or higher; ductless mini-splits get $200 (single zone) or $400 (multi-zone) and heat pump water heaters $500. The home must already have electric heat (no fuel switching), equipment must be new, and applications go through the Kentucky Power Gateway portal; a free home energy assessment is offered but not required for rebates.
TVA EnergyRight Heat Pump Rebate (West Kentucky RECC and other TVA-served KY co-ops)
$800Tiered rather than flat: $500 for air-source or dual-fuel heat pumps rated 15-16.99 SEER2 and $800 at 17 SEER2 or higher; ductless mini-splits also qualify for $800 and geothermal heat pumps for $1,500. TVA EnergyRight also pays a separate $50 HVAC tune-up incentive and $300 for duct sealing or repair. Work must be done by a Quality Contractor Network member, who submits the rebate for you. Available through TVA-served Kentucky cooperatives including West Kentucky RECC, Pennyrile and Kenergy.
East Kentucky Power Cooperative Heat Pump Retrofit Rebate (Touchstone Energy member co-ops)
$1,000Offered through EKPC's 16 member distribution co-ops (Blue Grass Energy, Owen Electric, Salt River, Jackson Energy, Shelby Energy and others). Replacing an electric furnace, baseboard, ceiling cable or thermal storage heat with a heat pump pays $750 at federal minimum efficiency, $1,000 for an ENERGY STAR system, or $500 for a ductless mini-split; upgrading an existing ducted heat pump to a higher-efficiency ENERGY STAR unit pays $500, or up to $1,000 for cold-climate or geothermal. Home must be at least two years old and electrically heated, and pre- and post-installation energy reviews are required, so contact your co-op before work begins.
8 utility-specific programs not shown here. Enter your ZIP in the calculator to filter to just your utility.
A worked example: strip-heat-to-heat-pump conversion in Louisville
Aisha owns a 1,600 sq ft home in Louisville served by LG&E. Her 17-year-old electric strip-heat system and central AC are both end-of-life. She gets quotes for a 2.5-ton ducted air-source heat pump (Lennox, 16 SEER2 / 8.5 HSPF2) installed at $11,200. Because she's an LG&E customer (not Duke Energy Kentucky), the LG&E Residential Heat Pump Rebate at $400 applies — flat rate for replacing electric heating with an ENERGY STAR central ASHP. Her household income is approximately 92% of Louisville's AMI — Kentucky HEAR still hasn't opened applications as of September 2026, so the income-qualified federal rebate isn't yet available to her. The federal §25C credit is gone. Combined stack: $400 against $11,200. Net out-of-pocket: $10,800. If Aisha lived 20 miles north in Crescent Springs (Duke Energy Kentucky service territory) with the same install, her stack would be very different: Duke Energy Kentucky's Strip Heat to Heat Pump Conversion rebate pays $1,000 for the higher-efficiency tier. Same equipment, same scenario, $600 difference based on utility identity.
Choosing a contractor in Kentucky
Kentucky licenses HVAC contractors through the Department of Housing, Buildings and Construction. Verify HVAC Class M-1 or M-2 license at dhbc.ky.gov before signing. LG&E/KU, Duke Energy Kentucky, and Kentucky Power each have their own approved contractor lists for rebate filing; the contractor must be enrolled with the specific utility whose rebate you're claiming. TVA EnergyRight requires a Quality Contractor Network (QCN) member — the QCN roster is searchable at energyright.com. A non-QCN contractor cannot file the EnergyRight rebate on your behalf even with qualifying equipment.
Common pitfalls for Kentucky homeowners
- Confusing LG&E and Duke Energy Kentucky service territories. LG&E serves Louisville and Jefferson County; KU serves much of central Kentucky outside Louisville (Lexington, Bowling Green, Owensboro); Duke Energy Kentucky serves northern Kentucky (Covington, Florence, Newport, Independence). The three programs offer different amounts for similar equipment. A Florence homeowner is a Duke Energy Kentucky customer (not LG&E), and Duke Energy Kentucky pays substantially more for strip-heat conversions. Check your monthly electric bill before assuming which program applies.
- Missing the Duke Energy Kentucky Home Energy Check window. Duke Energy Kentucky's heat pump rebates require a Home Energy Check completed within 24 months of install. The Home Energy Check is free for Duke Energy residential customers — schedule it through duke-energy.com or by phone before equipment is ordered. Late or missing Home Energy Checks are the most common cause of Duke Kentucky rebate denials.
Estimate your net cost
Used to determine HEEHRA eligibility (under 80% area median income).
- East Kentucky Power Cooperative Heat Pump Retrofit Rebate (Touchstone Energy member co-ops)−$1,000
- Duke Energy Kentucky Strip Heat to Heat Pump Conversion Rebate−$1,000
- Duke Energy Kentucky Heat Pump Water Heater Rebate−$800
- LG&E and KU Residential Heat Pump Rebateexcluded — pick one: Duke Energy Kentucky Smart $aver Heat Pump Rebate (HVAC Upgrade) wins
- Duke Energy Kentucky Smart $aver Heat Pump Rebate (HVAC Upgrade)excluded — pick one: Duke Energy Kentucky Strip Heat to Heat Pump Conversion Rebate wins
- Kentucky Power High Efficiency Heat Pump Programexcluded — pick one: Duke Energy Kentucky Strip Heat to Heat Pump Conversion Rebate wins
- TVA EnergyRight Heat Pump Rebate (West Kentucky RECC and other TVA-served KY co-ops)excluded — pick one: Duke Energy Kentucky Strip Heat to Heat Pump Conversion Rebate wins
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 Kentucky
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; Kentucky 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 Kentucky 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.