Wisconsin Heat Pump Rebates
Stackable incentives available to Wisconsin homeowners installing a qualifying heat pump in 2026.
Rebate data is re-verified against primary sources every two months.
What's available in Wisconsin
Wisconsin has one of the more active incentive landscapes in the Midwest. The statewide Focus on Energy program provides 2026 instant discounts of $400-$700 on qualifying air source heat pumps for all households and $600-$900 for income-qualified households, delivered through participating Trade Ally contractors, plus a $750-$1,000 geothermal heat pump rebate. Two IRA-funded programs remain operational: the HOMES program (launched August 2024, Wisconsin was the first state to go live) pays $1,500-$10,000 for whole-home projects that include heat pumps, with the amount set by both modeled savings and household income, and the HEAR program (launched December 2024) pays income-qualified households up to $8,000 toward a heat pump. Both are funded from a fixed $149M allocation and will end when exhausted. In May 2026 DOE issued guidance barring these rebates for replacing gas, oil or propane heating with electric equipment; the PSC says the guidance is under review, and as of September 1, 2026 Focus on Energy stopped accepting retail and instant-discount coupon requests for equipment replacing fossil fuel appliances, so gas-heated households should confirm eligibility before counting on HOMES or HEAR. We Energies, MGE, Alliant and Xcel Wisconsin do not run separate heat pump rebates and direct customers to Focus on Energy.
HEEHRA in Wisconsin
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. Wisconsin is finalizing program rules.
How heat pump rebates work in Wisconsin
Wisconsin has one of the more active incentive landscapes in the Midwest. The statewide Focus on Energy program provides 2026 instant discounts of $400-$700 on qualifying air source heat pumps for all households, rising to $600-$900 for income-qualified households, delivered through participating Trade Ally contractors and funded by We Energies, Xcel Energy Wisconsin, Alliant Energy, and Wisconsin Public Service. Two IRA-funded programs remain operational, although DOE guidance issued in May 2026 now bars rebates for replacing gas, oil or propane heating with electric equipment and Wisconsin is revising its programs to comply (as of September 1, 2026 Focus on Energy stopped taking retail and instant-discount requests for fossil-fuel-replacement equipment): the HOMES program (launched August 2024, Wisconsin was the first state to go live) provides $1,500-$10,000 for whole-home projects that include heat pumps, and the HEAR program (launched December 2024) provides income-qualified households up to $8,000 specifically for heat pump installations. Both IRA programs are funded from a fixed $149M allocation and will end when exhausted. Wisconsin was the first state to launch both HOMES and HEAR — making it one of the most usable rebate stacks in the country for moderate-income households in 2026. Individual utility heat pump rebates beyond Focus on Energy participation are minimal — We Energies and Xcel Wisconsin direct customers to Focus on Energy.
Wisconsin rebate programs
Focus on Energy Air Source Heat Pump Instant Discount
$900Tiered by efficiency, not a flat range. For 2026 the four tiers pay $400, $500, $600 and $700 for standard households (Tier 1 starts at SEER2 15.2 / HSPF2 8.1; Tier 4 requires SEER2 16.0 / HSPF2 10.0) and $600, $700, $800 and $900 for income-qualified households, so the $900 figure is only for income-qualified households buying top-tier equipment. Delivered as an instant discount through participating Trade Ally contractors for customers of participating Wisconsin utilities; applications must be filed within 60 days of installation and no later than January 31, 2027.
Wisconsin HOMES (Home Owner Managing Energy Savings) Rebate
$10,000IRA-funded whole-home efficiency rebate launched August 2024 and administered by Focus on Energy; requires a home energy assessment and at least 20% modeled energy savings. Rebates depend on both savings and income: for 20-34% savings, up to $5,000 (below 80% AMI), $2,000 (80-150% AMI) or $1,500 (above 150% AMI); for 35% or more savings, up to $10,000, $4,000 or $3,000 respectively. Heat pumps qualify as part of a whole-home project; households below 80% AMI can also get up to $500 toward the assessment. Funded from a fixed $74.8M HOMES share of Wisconsin's $149M allocation; DOE guidance issued May 29, 2026 restricting rebates for replacing fossil fuel heating is under PSC review, so confirm eligibility for gas-furnace-to-heat-pump projects before relying on this rebate.
Wisconsin HEAR Heat Pump Rebate (income-qualified)
$8,000Up to $8,000 toward an ENERGY STAR electric heat pump for space heating and cooling, installed by an IRA Registered Contractor, for households under 150% of Area Median Income: below 80% AMI the rebate covers 100% of project cost and 80-150% AMI covers 50%, within a $14,000 per-household HEAR cap. Funded from Wisconsin's fixed $74.5M HEAR share of the $149M IRA allocation and administered by Focus on Energy; funds were not exhausted as of September 2026. Focus on Energy states that one address may not receive both HOMES and HEAR for the same upgrade type, but either can be combined with regular Focus on Energy rebates. Note that as of September 1, 2026 Focus on Energy no longer accepts retail or instant-discount coupon requests for equipment replacing fossil fuel appliances, following DOE guidance limiting HEAR to electric-to-electric replacements and new construction; if you heat with gas, oil or propane, confirm eligibility with Focus on Energy before signing a contract.
Focus on Energy Geothermal Heat Pump Rebate
$1,000Focus on Energy pays a $1,000 rebate for a qualifying geothermal (ground source) heat pump in homes with natural gas service and $750 in homes without natural gas service. Paid by check 8-10 weeks after approval rather than as an instant discount; the application must be submitted within 60 days of installation and no later than January 31, 2027.
3 utility-specific programs not shown here. Enter your ZIP in the calculator to filter to just your utility.
A worked example: whole-home install in Milwaukee
Hannah owns a 1,800 sq ft home in Milwaukee served by We Energies. Her 25-year-old gas furnace and central AC are end-of-life. She gets quotes for a 3-ton ducted cold-climate air-source heat pump (Mitsubishi Hyper Heat H2i) plus attic insulation upgrades, modeled to achieve 32% whole-home energy savings. Installed cost (heat pump + insulation bundle): $19,800. Because the project is a whole-home upgrade with modeled savings of 32%, it falls in HOMES' 20-34% savings band; at her income (80-150% AMI) that band pays up to $2,000. The $10,000 HOMES maximum is reserved for households below 80% AMI with 35% or more modeled savings. Focus on Energy's instant discount on the air-source heat pump adds approximately $700 at the dealer. Her household income is approximately 95% of Milwaukee County AMI — eligible for HEAR's moderate-income tier (80-150% AMI) at 50% of project cost up to $8,000. But HOMES and HEAR are mutually exclusive on the same equipment per federal IRA rules — HEAR (50% of the heat pump cost, capped at $8,000) would be worth far more than $2,000 under HOMES, but because she is replacing a gas furnace, the May 2026 DOE guidance limiting these rebates to electric-to-electric replacements may make her ineligible for either IRA rebate; she must confirm with Focus on Energy before signing. If HEAR is approved: $8,000 HEAR + $700 Focus on Energy = $8,700 against $19,800, net out-of-pocket $11,100. If only HOMES is available: $2,000 + $700 = $2,700, net $17,100.
Choosing a contractor in Wisconsin
Wisconsin licenses HVAC contractors through the Department of Safety and Professional Services under HVAC Contractor credentialing. Verify at dsps.wi.gov before signing. Focus on Energy's instant discount requires a participating Trade Ally; the participating contractor list is on focusonenergy.com. The discount is applied at the distributor level, so the contractor must be enrolled to access it. Wisconsin HOMES and HEAR rebates require a Focus on Energy-trained contractor — most Trade Allies handle both Focus discounts and state HOMES/HEAR applications through the same workflow. Confirm at the quote stage.
Common pitfalls for Wisconsin homeowners
- Trying to claim HOMES and HEAR on the same equipment. Wisconsin HOMES and HEAR are both IRA-funded but federal rules prohibit claiming both rebates for the same equipment. Focus on Energy handles the exclusivity at the application stage — the homeowner picks the path that pays more. HOMES wins for whole-home projects with substantial modeled savings; HEAR wins for single-measure heat pump installs at lower-income tiers. Since September 2026, also confirm that a heat pump replacing a gas, oil or propane furnace is still eligible at all: DOE's May 2026 guidance limits HOMES and HEAR to electric-to-electric replacements and new construction, and Focus on Energy is updating its rules to comply.
- Counting on the $149M IRA allocation continuing past exhaustion. Wisconsin's HOMES and HEAR programs are funded from a fixed $149M federal allocation. Wisconsin launched both early and has been disbursing actively — at current pace, the funds could exhaust in 2026 or 2027 depending on uptake. Check current funding status at focusonenergy.com/home-energy-rebates before relying on the full rebate amount.
Estimate your net cost
Used to determine HEEHRA eligibility (under 80% area median income).
- Wisconsin HOMES (Home Owner Managing Energy Savings) Rebate−$10,000
- Focus on Energy Air Source Heat Pump Instant Discount−$900
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 Wisconsin
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; Wisconsin 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 Wisconsin 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.