What utility offers the best heat pump rebate in 2026?

Eversource (Massachusetts/Connecticut) offers up to $1,500 for cold-climate heat pumps through MassSave — the highest single utility rebate in the country. National Grid (New York/Massachusetts) offers up to $1,250. DTE Energy (Michigan) offers up to $1,200 for cold-climate and ductless systems. Most utility rebates stack with federal HEAR and 25C programs.

Can I combine utility heat pump rebates with the federal HEAR program?

Yes — utility rebates and federal HEAR (High-Efficiency Electric Home Rebate Act) rebates are separate programs and can be stacked on the same installation, as long as total incentives do not exceed project cost. An income-qualified DTE customer could receive HEAR $8,000 + DTE $1,200 = $9,200+ on a single heat pump installation.

What heat pump qualifies for utility rebates?

Most utilities require ENERGY STAR certification at minimum. The highest rebate tiers typically require cold-climate performance ratings: 16+ SEER2, 9.1+ HSPF2, and rated operation at 5°F or below. Ductless mini-splits and ducted cold-climate models from Mitsubishi, Daikin, Bosch, Carrier, and Fujitsu commonly qualify for top tiers.

Home › Energy Rebates › Utility Rebates for Heat Pumps

12 Major Utilities · Up to $1,500 · Stacks with HEAR + 25C · July 2026

Utility Rebates for Heat Pumps 2026–2027

Every major US utility heat pump rebate in one place. Eversource up to $1,500. DTE up to $1,200. Xcel up to $1,200. Stack with federal HEAR and 25C programs to recover $9,000+ on one installation.

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$1,500

Highest utility rebate

Utilities covered

$9,000+

Max stacked savings

3 layers

HEAR + utility + 25C

How Utility Heat Pump Rebates Work

Utility companies offer heat pump rebates as part of their demand-side management (DSM) programs — reducing peak electricity demand benefits the grid, so utilities pay customers to install efficient equipment. These rebates come directly from your utility, separate from any state or federal program.

Most utility rebates are point-of-sale or contractor-submitted — your installer applies, the rebate is deducted from your invoice or mailed as a check within 6–8 weeks. Unlike tax credits, you don't need to wait until tax filing. Income eligibility varies; most utility rebates have no income requirement.

🏢

Utility Rebate

$200–$1,500
No income limit (usually)
Applied at install

🏛️

HEAR Rebate

Up to $8,000
Below 150% AMI
State administered

📋

25C Tax Credit

30% up to $2,000
No income limit
Filed at tax time

Heat Pump Rebates by Utility (2026)

Rebate amounts verified July 2026 · Always confirm current amounts at your utility's website before purchasing · Amounts may differ by service territory

Utility	Cold Climate	Standard	Ductless	Geothermal
EversourceMA, CT, NH MassSave / CT Energy Efficiency Official site →	$1,500	$500	$1,500	$2,000
National GridNY, MA, RI NY Clean Heat / MA Rebate Official site →	$1,250	$400	$1,250	$1,500
DTE EnergyMI DTE Energy Rebate Program Official site →	$1,200	$500	$1,200	N/A
Xcel EnergyCO, MN, TX, NM Xcel Energy Rebates Official site →	$1,200	$300	$800	$1,500
Green Mountain PowerVT GMP Heat Pump Rebate Official site →	$1,200	$400	$1,200	$1,500
Portland General ElectricOR PGE Heat Pump Incentive Official site →	$1,000	$400	$800	$1,200
Duke EnergyNC, SC, FL, IN, OH, KY Duke Energy Smart $aver Official site →	$800	$300	$600	$1,000
Consumers EnergyMI Consumers Energy Rebates Official site →	Varies by tier	Varies	Varies	Varies
ComEdIL ComEd Energy Efficiency Official site →	$750	$250	$600	$1,000
PNM (Public Service NM)NM PNM Energy Efficiency Official site →	$700	$300	$600	$900
Puget Sound EnergyWA PSE Heat Pump Rebate Official site →	$1,000	$400	$800	$1,200
APS (Arizona Public Service)AZ APS Energy Efficiency Rebate Official site →	$500	$200	$400	N/A

4 Rules to Maximize Your Utility Rebate

1. Check eligibility BEFORE buying

Most utility rebates require pre-approval or a registered contractor. Buying the unit first and asking for the rebate after often disqualifies you. Call your utility before signing any contract.

2. Get the contractor to apply for you

Many utility rebates are processed contractor-side — the installer submits the rebate paperwork and deducts it from your invoice. Ask your installer if they are a participating contractor with your utility.

3. Stack every incentive layer

Utility rebate → State HEAR rebate → Federal 25C tax credit. These are three separate programs. An income-qualified homeowner with DTE in Michigan can layer all three and recover $9,000+ on a single heat pump.

4. Cold-climate earns the highest tier

Every utility pays more for cold-climate heat pumps (16+ SEER2, 9.1+ HSPF2, rated to 5°F). Ask your installer for specifically cold-climate-rated models — Mitsubishi Hyper-Heat, Bosch IDS, Carrier Infinity, Daikin Fit.

FAQ — Utility Heat Pump Rebates

How do I find out if my utility offers a heat pump rebate?

Check your utility's website under "rebates," "energy efficiency," or "smart energy." You can also call the number on your electricity bill. The DSIRE database (dsireusa.org) lists utility programs by ZIP code. If your utility is not listed here, check DSIRE — smaller cooperatives and municipal utilities often have their own programs.

Can I get a utility rebate for replacing a gas furnace with a heat pump?

Yes — most utility rebates apply when you replace any heating system (gas, oil, electric resistance) with an efficient heat pump. Some utilities offer higher rebates specifically for fuel-switching from fossil fuels. Ask about "beneficial electrification" programs when you call.

What if I have DTE for gas but a different company for electricity?

Heat pump rebates are almost always from your electric utility, since heat pumps run on electricity. Your gas utility may offer insulation or weatherization rebates separately. If you are switching from gas heat to a heat pump, contact your electric utility for the heat pump rebate.

How long does it take to receive a utility rebate check?

Most utility rebates are processed within 4–8 weeks after the contractor submits paperwork. Some utilities issue a bill credit instead of a check — ask when you apply. If 10 weeks pass with no payment, call your utility's rebate processing department directly.

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State-by-State Heat Pump Guides

Heat Pump Rebates by StateAll states Michigan — MiHER + DTEUp to $9,200+New York — NY-Sun + National GridUp to $24,000 Vermont — 23 ProgramsUp to $9,150+Colorado — 16 ProgramsUp to $12,000+North Carolina — Duke EnergyUp to $9,000+Indiana — Duke + HEARUp to $8,000+Arizona — APS + TEP RebatesUp to $8,000+

This guide is for educational purposes only. Utility rebate amounts change frequently. Always verify with your utility before purchasing. Data verified July 2026.