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Austin Energy AC and heat pump rebate: $600 to $950, the 10-year rules, and the participating contractor

Austin Energy pays $600 to $800 toward a new high-efficiency air conditioner and $650 to $950 toward a heat pump, if your house and the old system are both at least 10 years old and an Austin Energy participating contractor does the work (Austin Energy AC rebate, last reviewed 24 February 2026, read 23 October 2026). Austin HVAC contractors filed 18,237 HVAC permits on homes from October 2023 to September 2026, so there is a long record to check the installer against.

By Contractor Records · data through October 10, 2026

The amounts

Equipment Tier SEER2 EER2 HSPF2 Rebate
Central split or mini-split AC 1 15.2 12.0 — $600
2 17.0 12.0 — $700
3 18.0 13.0 — $800
Heat pump or heat pump mini-split 1 15.2 11.0 7.8 $650
2 16.0 11.0 8.0 $750
3 17.0 13.0 9.0 $950

Austin Energy says Consortium for Energy Efficiency 2025 requirements apply to air-source heat pumps from 1 January 2025. Funding is "limited and available only to Austin Energy customers on a first-come, first-served basis," and nothing is guaranteed until the utility approves the application.

Who qualifies

  • You receive electricity from Austin Energy; check the utility name on your bill.
  • The home is 10 years old or older, and every system being replaced is 10 years old or older. It is a replacement rebate only.
  • The old equipment did not get an Austin Energy rebate in the last 10 years.
  • The whole system is replaced: condenser, furnace or air handler, and evaporator coil.
  • The system is sized to ACCA Manual J or Austin Energy's guidance.
  • No electric resistance heating elements: "Air conditioning systems with electric resistance heating elements do not qualify." Ask whether the quoted system includes heat strips.
  • Owner or account holder receives it; a tenant needs a signed Letter of Authorization. The contractor cannot receive it.

What it means when you hire

The contractor must be on Austin Energy's participating list, and the contractor files the application, within 90 days of installation. Ask for the confirmation number before you pay the final invoice, then check it yourself at rebates.austinenergy.com. The application needs your account number, the tax assessor property ID, the AHRI certificate, the new serial number and the old unit's age and tonnage, so give the contractor those on day one.

There are two inspections. The City of Austin mechanical permit and inspection, pulled by a contractor with a TDLR air-conditioning license (Austin HVAC permit), and Austin Energy's own post-installation inspection for the rebate.

Ask for the tier in writing. A quote should name the AHRI reference number and the SEER2, EER2 and HSPF2 values, which decide whether you get $650 or $950.

What 18,237 Austin HVAC permits show

Measure Austin HVAC
Permits, October 2023 to September 2026 18,237
Firms / active in the last 12 months 819 / 479
Firms matched to an Active TDLR license 63.7%
Share held by the five busiest 31.7%
Usual days from issue to final 118
Finished (permits a year or more old) 80.7%
Firms with 10+ permits that finished under 70% 27 of 167
Busiest / quietest month June (129) / February (73)

Permits peak in June, at 129 against an average month of 100, and bottom out in February (73). A replacement planned for late winter gets you a less busy installer, and the 90-day application window is easier to watch. The finished share varies a lot by firm, from 60.3% at the 10th percentile to 96.2% at the 90th, so check the installer's own figure before you sign.

Compare Austin HVAC contractors by permit record →

Related

Choosing the installer: hiring an HVAC contractor in Austin. Checking the TDLR license: Austin contractor license lookup. Permit counts by year: Austin permit statistics. Fix or replace: HVAC repair vs replacement.

What this does not tell you

Our permit records do not show which jobs got an Austin Energy rebate or which contractors are on the participating list; that list is on Austin Energy's page. Austin permits carry no filed value, so we cannot show what a replacement cost. Rebate amounts are as published on the date we read them and can change.

How we know this

Rebate amounts and rules are from Austin Energy's residential air conditioning rebate page (last reviewed 24 February 2026), read 23 October 2026. Permit counts are City of Austin issued construction permits on homes classified as HVAC, October 2023 to September 2026; license matches are against TDLR's file.

Numbers come from City of Austin issued construction permits, data through October 10, 2026. Nobody paid to be on this page and nobody can.

Questions

  • How much is the Austin Energy AC rebate?

    $600, $700 or $800 for a central split or mini-split air conditioner, depending on efficiency tier (SEER2 15.2 to 18.0), and $650, $750 or $950 for a heat pump (Austin Energy AC rebate page, last reviewed 24 February 2026, read 23 October 2026).

  • Who qualifies for the Austin Energy heat pump rebate?

    Austin Energy residential customers whose home is 10 years old or older, replacing a system that is also 10 years old or older and has not had a rebate in the last 10 years. A participating contractor must install it, and systems with electric resistance heat strips do not qualify.

  • How do I apply for the Austin Energy AC rebate?

    You do not; your participating contractor applies through Austin Energy's online rebate system within 90 days of installation. Late applications are not approved. You can check status at rebates.austinenergy.com with the confirmation and account numbers.

  • Do I need a permit to replace my AC in Austin?

    Yes, a City mechanical permit, pulled by a TDLR-licensed A/C contractor. Austin Energy's rebate also needs a post-installation inspection of its own. The usual Austin HVAC permit in our file reached final 118 days after issue.

  • Can I stack the AC rebate with other Austin Energy programs?

    Austin Energy says joining its Home Energy Savings program within six months of the AC rebate can add $200, and AC-only customers may still qualify for other rebates and financing through that program.

Build your own list

Every firm with that kind of permit on record. Pick what you value. The list moves.

Sources
  1. Air Conditioning Rebate — Austin Energy (accessed 2026-10-23)