Wisconsin Heat Pump Rebates
Stackable incentives available to Wisconsin homeowners installing a qualifying heat pump in 2026.
What's available in Wisconsin
Wisconsin has one of the more active incentive landscapes in the Midwest. The statewide Focus on Energy program provides instant discounts of $400–$900 on qualifying air source heat pumps at no cost to all income levels, delivered through participating Trade Ally contractors and funded by We Energies, Xcel Energy Wisconsin, Alliant Energy, and Wisconsin Public Service. Two IRA-funded programs are also fully operational: 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. Individual utility heat pump rebates beyond Focus on Energy participation are minimal — We Energies and Xcel Wisconsin direct customers to Focus on Energy rather than running separate programs.
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 instant discounts of $400-$900 on qualifying air source heat pumps at no cost to all income levels, delivered through participating Trade Ally contractors and funded by We Energies, Xcel Energy Wisconsin, Alliant Energy, and Wisconsin Public Service. Two IRA-funded programs are also fully operational: 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
$650Statewide instant discount of $400–$900 applied at the distributor level for qualifying air source heat pumps; no application required when using a participating Trade Ally contractor; available to all income levels regardless of utility provider.
Wisconsin HOMES (Home Owner Managing Energy Savings) Rebate
$10,000IRA-funded whole-home efficiency rebate launched August 2024; rebates range $1,500–$10,000 based on projected whole-home energy savings; requires a home energy assessment; heat pump installations qualify as part of a whole-home project; Wisconsin was the first state to launch HOMES nationwide; funded from a fixed $149M federal allocation.
Wisconsin HEAR Heat Pump Rebate (income-qualified)
$8,000IRA-funded program launched December 2024 and administered by Focus on Energy on behalf of the PSC; households below 80% AMI receive up to 100% of costs (up to $8,000) for a qualifying heat pump; households 80–150% AMI receive up to 50% of costs; maximum $14,000 total per household across all HEAR upgrades; funded from Wisconsin's $149M IRA allocation.
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 ≥30%, she qualifies for Wisconsin HOMES at $10,000 (the upper-tier figure for high-savings projects). 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 — she picks HOMES ($10,000) since it's larger. Combined: $10,000 HOMES + $700 Focus on Energy = $10,700 against $19,800. Net out-of-pocket: $9,100.
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.
- 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−$650
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.