Texas home energy rebates & incentives (2026)
Texas has many electric utilities and co-ops, so rebates vary widely by provider — and in 2026 those utility programs are the main savings while the state's IRA Home Energy Rebate program (HOMES/HEAR) finishes its rollout. The federal 25C/25D tax credits ended after 2025 and no longer apply. Income-qualified households can also use the Weatherization Assistance Program.
Texas has not yet opened its IRA Home Energy Rebate program (HOMES/HEAR) — it's in the design or launch phase. Check your state energy office for the timeline. Utility rebates and weatherization assistance are available in the meantime.
Texas home energy incentives at a glance (July 3, 2026)
- IRA rebates (HOMES/HEAR) in Texas: Not open yet — in design or launch phase
- HEAR rebate: Up to $14,000 per household for income-qualified residents (at or below 150% of area median income)
- HOMES rebate: Typically up to $8,000, all incomes, based on whole-home energy savings
- Federal tax credits (25C/25D): Ended December 31, 2025 — no federal home energy tax credit for 2026 installs
- Still available: Utility rebates (see providers below) and free Weatherization Assistance for income-qualified households
Federal update for 2026
Federal home energy tax credits (25C and 25D) ended December 31, 2025. The One Big Beautiful Bill Act (Public Law 119-21, signed July 4, 2025) terminated the Energy Efficient Home Improvement Credit (Section 25C) and the Residential Clean Energy Credit (Section 25D). No 25C or 25D credit is available for property placed in service on or after January 1, 2026. Equipment placed in service by December 31, 2025 can still be claimed on your 2025 return (IRS Form 5695), and unused 25D credit generally carries forward. This is not tax advice — confirm with the IRS or a tax professional.
What's available now: The Inflation Reduction Act funds roughly $8.8 billion in Home Energy Rebates through two state-run programs: HOMES (Home Efficiency Rebates) and HEAR/HEEHRA (Home Electrification and Appliance Rebates). These rebates were not repealed by the 2025 tax law and remain the primary federal savings pathway. They are administered by each state's energy office and launch on different timelines; funding runs until it is used up or September 30, 2031.
Recent change: A mid-2026 U.S. Department of Energy update narrowed HEAR: rebates no longer cover 'fuel switching' (for example, replacing a gas furnace with a heat pump) and now focus on upgrading existing electric equipment to more efficient electric models. New HVAC rebates may also require insulation and air sealing to be done at the same time. Exact rules and timing vary by state.
Sources: IRS — One Big Beautiful Bill provisions · U.S. DOE — Home Energy Rebates (state allocations & status) · DSIRE — Database of State Incentives for Renewables & Efficiency
Federal tax credits (ended)
Ended December 31, 2025These federal credits were available through 2025. They're shown here for reference and for anyone claiming a 2025 install — they do not apply to work done in 2026 or later.
Energy Efficient Home Improvement Credit IRC §25C
No longer availableWas 30% of project cost, up to $1,200 per year (no lifetime limit), with a $600-per-item cap — and a higher $2,000 per year limit for heat pumps and heat pump water heaters. Home energy audits up to $150. Existing homes only.
Not available for property placed in service on or after January 1, 2026. Work completed by December 31, 2025 can still be claimed on your 2025 return.
Residential Clean Energy Credit IRC §25D
No longer availableWas 30% of cost with no dollar cap — for solar panels, solar water heating, battery storage, small wind, fuel cells, and geothermal heat pumps. Was originally scheduled to run through 2034 before it was ended early.
Not available for expenditures made on or after January 1, 2026. Costs paid by December 31, 2025 can still be claimed on your 2025 return, and unused credit generally carries forward.
Sources: IRS — One Big Beautiful Bill provisions · IRS — Energy Efficient Home Improvement Credit (25C)
What about 2027 and 2028?
- No new federal home-energy tax credits are scheduled for 2027 or 2028. The 25C and 25D credits ended after 2025 and have not been replaced.
- The IRA-funded Home Energy Rebates (HOMES and HEAR) are scheduled to remain available through September 30, 2031, or until each state's funds run out — so they can still apply in 2026, 2027, and 2028 wherever a state's program is running.
- For home solar installed through a lease or power-purchase agreement, the separate Section 48E clean-electricity credit is scheduled to end for projects placed in service after December 31, 2027 (with exceptions for projects that began construction by July 4, 2026). This credit is claimed by the system owner, not the homeowner.
- Utility rebates and the Weatherization Assistance Program don't have a national expiration tied to the tax law and are expected to continue.
Sources: IRS — One Big Beautiful Bill provisions · U.S. DOE — Home Energy Rebates
IRA Home Energy Rebates in Texas
These federal rebate programs are administered by the state. Amounts shown are the federal maximums — final rules are set by Texas.
Home Electrification and Appliance Rebates (HEAR / HEEHRA)
Low- and moderate-income households (generally at or below 150% of Area Median Income). Below 80% AMI may receive up to 100% of project cost; 80–150% AMI generally up to 50%.
| Measure | Max rebate |
|---|---|
| Heat pump (space heating & cooling) | $8,000 |
| Heat pump water heater | $1,750 |
| Electric panel / service upgrade | $4,000 |
| Electric wiring | $2,500 |
| Insulation, air sealing & ventilation | $1,600 |
| Electric stove / cooktop / oven | $840 |
| Heat pump clothes dryer | $840 |
| Household total (all measures) | $14,000 |
Amounts are federal maximums; your state sets final rules.
Home Efficiency Rebates (HOMES)
Available to all income levels. Rebate scales with modeled or measured whole-home energy savings; larger amounts for deeper savings and for low-income households.
Typical maximum
$8,000
Because HOMES depends on your home's projected energy savings, the amount is determined after an energy assessment — it can't be precisely estimated in advance.
State & utility program examples
Sample data Illustrative examples of the kinds of programs available — confirm current amounts with the official source.
Sample Statewide Heat Pump Rebate
Texas (state-administered, sample) · state
$1,000–$8,000Higher end for income-qualified households
Larger amounts typically reserved for households below an income threshold tied to area median income.
Who qualifies
- Own and occupy a Texas home
- Install a qualifying efficiency-tier heat pump
- Use a participating contractor where required
- Meet income limits for the higher rebate tier
Documents needed
- Proof of Texas residency
- Itemized contractor invoice
- AHRI certificate / model number
- Proof of income for income-based tier
How to apply
- Confirm the program is open and funded
- Get a quote from a participating contractor
- Complete the install and keep all invoices
- Submit the application with documents before the deadline
- Track your rebate status
Common mistakes
- Buying equipment before confirming it is on the qualifying list
- Missing the post-install submission window
- Using a non-participating contractor
Illustrative placeholder — verify all details with the official Texas program.
Sample Weatherization Assistance
Texas Department of Housing and Community Affairs (sample) · state
Often $0 out of pocketIncome-qualified households
Eligibility tied to household income limits updated annually; see the official limits.
Who qualifies
- Household income within the program limit
- Provide income documentation for all members
- Priority for seniors, people with disabilities, and families with children
Documents needed
- Photo ID
- Proof of income for all household members
- Utility bills
- Proof of residence / ownership or landlord consent
How to apply
- Find your local weatherization provider
- Submit an application and income proof
- Complete a home energy assessment
- Have the work performed by the provider's crew
- Sign off on completed measures
Common mistakes
- Assuming a national income limit applies
- Not applying early enough to beat the waitlist
Illustrative placeholder — verify with the official Texas weatherization program.
Source: TDHCA Weatherization (verify)
Utility rebates in Texas
Your electric or gas utility likely runs its own rebates, separate from federal and state programs — and they usually stack with IRA rebates.
Weatherization Assistance Program (WAP)
A long-standing, federally funded program that provides free energy-efficiency upgrades (insulation, air sealing, and more) to income-qualified households through local providers. Unaffected by the 2025 tax law. (U.S. DOE — Weatherization Assistance Program)
Who typically qualifies
- You own and occupy the home (renters usually need landlord participation)
- Your equipment meets the program's efficiency tier
- You use a participating or licensed contractor where required
- Your household income is within limits for income-based tiers
Documents you'll usually need
- Itemized contractor invoice (labor and equipment)
- Equipment model number and efficiency certificate (AHRI / ENERGY STAR)
- Proof you own and occupy the home
- Proof of income (for income-qualified rebates)
- Completed program application and any pre-approval
How to get a rebate in Texas
- Confirm the program is open and funded
- Check that your equipment and contractor qualify
- Get pre-approval if the program requires it
- Complete the work and keep every invoice
- Submit your application with documents before the deadline