Austin Energy's Rebate Program
Austin Energy offers rebates to encourage homeowners to install high-efficiency HVAC systems. These rebates can significantly offset the cost of upgrading to a more efficient system.
Current Rebate Amounts (2026)
| System Type | Efficiency | Rebate Amount |
|---|---|---|
| Central AC / Heat Pump | 16–17 SEER2 | $200 |
| Central AC / Heat Pump | 18–19 SEER2 | $500 |
| Central AC / Heat Pump | 20+ SEER2 | $800 |
| Variable-Speed Heat Pump | 20+ SEER2 | $1,200 |
| Duct Sealing (with new system) | , | $200 additional |
Rebate amounts are subject to change. Verify current amounts at austinenergy.com.
How to Qualify
- You must be an Austin Energy customer (most Austin addresses)
- The system must be installed by a licensed contractor
- Equipment must meet the minimum efficiency requirement
- You must apply within 90 days of installation
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How to Claim Your Rebate
- Get your system installed by a licensed contractor
- Keep your installation invoice and equipment specifications
- Submit the rebate application at austinenergy.com/rebates
- Receive your rebate check within 6–8 weeks
Combining with Federal Tax Credits
The federal Inflation Reduction Act also offers tax credits for high-efficiency HVAC:
- 30% tax credit (up to $600) for qualifying heat pumps
- 30% tax credit (up to $600) for qualifying central AC systems
Combined with Austin Energy rebates, you could save $1,500–$2,000 on a new high-efficiency system.
Is the Higher-Efficiency System Worth It?
With rebates and tax credits, the payback period on a 20 SEER2 system versus a 15 SEER2 system drops from 8–10 years to 4–6 years for most Austin homeowners. Use our calculator [blocked] to see the numbers for your home.
