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Texas · checked October 21, 2026

Heat pump water heater rebates in Texas

1 program pays toward a heat pump water heater in Texas right now, with 1 offer between them. The largest stated amount is $1,000, from Austin Energy heat pump water heater rebate. The federal 25C credit for this upgrade ended on December 31, 2025, so the state and utility money below is what is left.

Run the calculator All Texas rebates

123
  1. 1Heat pump water heater $1,000
  2. 2Air-source heat pump $950
  3. 3Home EV charger $500
Open programs
1
Largest stated amount
$1,000
Income-qualified offers
0
Federal credit
Ended December 31, 2025
Austin Energy water heaters$1,000
Texas heat pump water heaters: the largest amount each open offer states (per-ton and per-zone offers drawn for a 3-ton system or 2 zones). Bars to scale from zero.

What Texas pays for heat pump water heaters

Austin Energy heat pump water heater rebate Open

Run by Austin Energy · for customers of 1 utility

  • $1,000 for a qualifying ENERGY STAR heat pump water heater

Conditions on the program page: At least 40 gallons, Energy Factor 2.0 or better, installed new; An existing heat pump water heater being replaced must be 10 years old or older; Application within 90 days of purchase.

Source: Austin Energy: Heat pump water heaters (page updated July 2, 2026). Last checked October 21, 2026. Official program page.

Worked example: one Texas home

Take one heat pump water heater replacing an electric tank. These are example inputs, not typical prices. Each program's own rule gives the amounts below; where one program has several tiers only the largest one counts, separate programs add up, and a percentage offer with no cost entered is shown at its ceiling.

UtilityNot income-qualifiedModerate incomeLow income
Austin Energy$1,000$1,000$1,000

For a household that is not income-qualified, the example comes to $1,000, made of $1,000 from Austin Energy water heaters. None of the open offers has a separate income-qualified amount, so every household gets the same figure.

Who can use these Texas offers

Every household in Texas covered by Austin Energy can apply; the offers are not limited to one utility's territory. None of these program pages lists an end date, and each can change or stop while funds last.

Federal credit and state IRA rebates

The Energy Efficient Home Improvement Credit (IRC §25C) paid 30% of cost, up to $2,000 a year (shared with heat pumps). The IRS page says: “can claim the credit for improvements made through December 31, 2025.” Not allowed for property placed in service after December 31, 2025. Source: IRS: Energy Efficient Home Improvement Credit, 26 U.S.C. §25C, as amended by Public Law 119-21 (July 4, 2025). See what the credit covered and when it ended.

Texas Home Energy Rebates (HOMES and HEAR): Not launched. “Rebates are not currently available.” SECO will set a launch date only after DOE approves the state's plan; in April 2026 it hired APTIM to help design and run the programs. Source: Texas Comptroller SECO: IRA home energy rebates (updated May 19, 2026).

How Texas compares

6 of the other 14 covered states list a larger top amount for heat pump water heaters. Open elsewhere: California $4,000; Connecticut $1,900; North Carolina $1,750; Massachusetts $1,500; Maine $1,200; Oregon $1,200; Vermont $1,000; New Hampshire $900; Rhode Island $625; Arizona $500; Pennsylvania $500; Wisconsin $300. No open, sourced offer is listed in 2 other covered states (Florida, Michigan). Compare them on the heat pump water heater rebates by state page.

Other upgrades in Texas: air-source heat pump, home EV charger. Background: how rebates stack and the federal credit status.

Rebates are set by each program and can change or close without notice; the program's own page and application decide what is paid. This page is information, not tax, legal or financial advice. Amounts last checked October 21, 2026.