Austin Energy Rebates for Homeowners (2026 Guide)

If Austin Energy delivers your electricity, you have access to one of the more generous utility rebate menus in Texas. If you don't (Cedar Park, Lakeway, Georgetown and many other suburbs are served by other utilities), these programs don't apply. Check your bill first. This guide summarizes what Austin Energy's residential rebates page listed as of October 2026. Amounts and rules change, so confirm on the page before you buy anything.

The menu at a glance

The page also lists programs for weatherization and income-qualified customers. If your household income is limited, look at those first.

How the big programs work

AC rebate. This is for replacing a central system with qualifying efficient equipment. It usually requires using a participating contractor who handles the paperwork. Ask about rebate participation before you sign, because retroactive applications are often not accepted.

Home Energy Savings. This is the whole-home program, aimed at upgrades like attic insulation, air sealing, duct sealing and repair, and solar screens, where Austin homes often lose the most energy. The average rebate is larger, and 0% financing is available. For many 1980s–2000s homes, this program does more for comfort than a new AC alone.

Heat pump water heater. A heat pump water heater uses far less electricity than a standard electric tank. It needs space and airflow (often a garage) and a condensate drain. The $1,000 rebate makes it competitive with replacing a standard tank.

Sequencing upgrades for the best result

1. Fix the envelope first. Insulation, air sealing and duct repair reduce the load, which can mean a smaller, cheaper AC.
2. Then replace HVAC, sized with a Manual J calculation for the improved house. See our HVAC guide.
3. Add a smart thermostat and enroll in Power Partner for the rebate and credits.
4. Consider solar after a new roof, if your roof is aging.

Selling? ECAD connects here

Austin's ECAD ordinance requires sellers of homes 10 years or older inside city limits and served by Austin Energy to provide an energy audit to buyers, or comply through a qualifying program. Participating in Austin Energy efficiency programs can be one route to compliance, so ask when you sign up.

Federal credits are gone

The federal 25C home improvement credit and 25D residential clean energy credit don't apply to work placed in service after December 31, 2025. Rebates are now the main incentive. See federal energy credits ended in 2025.

Which program fits your house?

• A 1990s–2000s suburban home with a hot upstairs: Home Energy Savings first, for attic insulation, air sealing and duct repair, then consider HVAC.
• An aging AC that still runs: ask a participating contractor to evaluate both programs. An envelope fix may let you downsize the new system.
• An old electric tank water heater: the heat pump water heater rebate is a straightforward win if you have the space.
• A pool with an original single-speed pump: the variable-speed pump rebate pays back quickly through lower run costs.
• A new or recently replaced roof with good sun: solar plus the education-course rebate may make sense.

Watch for program changes

Utility rebate budgets and rules are set periodically and can change during the year. A program that's listed today might pause, change amounts or add requirements. Before committing, confirm three things with the participating contractor: the current rebate amount, the eligibility requirements for your equipment, and the deadline for submitting paperwork.

Tips

• Get the participating contractor list from Austin Energy, then check licenses (A/C contractors with TDLR).
• Keep invoices, model numbers and AHRI certificates.
• Ask whether the rebate goes to you or is credited on the contractor's invoice.
• Compare at least two participating contractors.