Does Texas have HEAR rebates?

No. Texas declined to implement the federal HEAR and HOMES rebate programs. Texas homeowners cannot access the up to $14,000 in HEAR rebates or up to $8,000 in HOMES rebates available to residents of states that participated in the program.

What energy rebates are available to Texas homeowners in 2026?

Utility programs through Oncor, CenterPoint, AEP Texas, and Austin Energy offer various rebates — smart thermostats ($50–$100), HVAC upgrades (up to $1,500 through Austin Energy), and appliance programs. Federal WAP weatherization and LIHEAP assistance remain available for income-qualified Texans.

Can low-income Texans get any free energy upgrades?

Yes — through federal programs Texas does participate in: the Weatherization Assistance Program (WAP) provides free weatherization for households at or below 200% of federal poverty level, and LIHEAP helps with energy bills. These are federally funded programs separate from HEAR/HOMES that Texas administers.

Does Austin have better energy rebates than the rest of Texas?

Significantly better. Austin Energy, as a municipal utility, offers rebates up to $1,500 for heat pumps, $1,500 for EV chargers, and free weatherization for income-qualified customers — programs unavailable or much smaller through Oncor, CenterPoint, or AEP. Austin residents should take full advantage.

Is solar worth it in Texas without the federal tax credit?

Depends heavily on your location and electricity costs. ERCOT territory has variable net metering rules, and some cooperatives don't offer retail-rate net metering. The 25C credit expiration hurt Texas solar economics, and without state solar incentives, payback periods in most of Texas extended to 12–18 years, which weakens the financial case.

Could Texas eventually offer HEAR-type rebates?

Theoretically, yes — a change in state government priorities or a future federal program structure that aligns with Texas's energy framework could change the situation. Some Texas cities and counties are exploring local clean energy financing options independent of state government. Watch local utility announcements for program changes.

Texas Energy Rebates 2026: What's Available (and What's Not)

Published: February 20, 2026

What Texas Did (and Didn't Do) With IRA Funding

The One Big Beautiful Bill didn't kill Texas's energy rebate situation — the Texas state government did that independently. When the Inflation Reduction Act created the HEAR and HOMES programs and allocated funding to states, Texas declined to participate in implementing the programs. The state government's position: federal energy mandates conflict with Texas's energy independence framework and preference for market-based solutions.

The practical consequence: Texas residents are largely excluded from the $14,000 per household maximum available through HEAR and the up to $8,000 through HOMES. Texans who pay federal taxes contributed to the funding of these programs but cannot access them.

A separate dynamic: Texas returned some IRA-funded energy program money that had been allocated, citing incompatibility with the state's energy policy direction. For context on how this compares to other states in a similar position, see states returning IRA funds.

What remains for Texas homeowners is a patchwork of utility programs, local government initiatives, and the economic argument that certain upgrades pay for themselves faster in Texas's climate even without rebates.

Utility Rebate Programs in Texas

Despite the state government's position on federal programs, investor-owned utilities in Texas operate efficiency programs required by the Public Utility Commission of Texas (PUCT) under the Energy Efficiency Implementation Project (EEIP). These are funded by Texas ratepayers — not federal money — and continue to operate.

Oncor (North Texas — Dallas/Fort Worth region)

Oncor serves approximately 10 million customers in North Texas. Current efficiency programs:

Smart thermostat rebate: $50 for qualifying programmable/smart thermostats
Heating efficiency rebates: Variable — check oncor.com/save for current offers
A/C efficiency rebates: Qualifying high-SEER central A/C systems may qualify for rebates during summer promotions
Appliance rebates: Intermittent — refrigerator, washer programs run periodically

CenterPoint Energy (Houston region)

CenterPoint serves the Houston metro area. Their efficiency programs have historically been more active than Oncor's:

Smart thermostat rebate: $75–$100 for qualifying units
HVAC efficiency rebates: Up to $500 for high-efficiency central A/C or heat pump upgrades
Weatherization assistance: Income-qualified weatherization program with limited funding

AEP Texas (West and South Texas)

Smart thermostat rebate: $50
Weatherization programs: Basic weatherization assistance for income-qualified households

Austin Energy (City of Austin)

Austin, served by its municipal utility Austin Energy, has the most robust local efficiency program in Texas:

Heat pump rebate: Up to $1,500 for qualifying heat pumps (this is the best heat pump rebate in Texas)
Smart thermostat: $85
Weatherization: Free for income-qualified Austin residents (AE's Power Saver program)
Solar rebate: Value of Solar Tariff provides performance-based export compensation
Electric vehicle charger rebate: Up to $1,500 for qualifying Level 2 EV chargers

Austin Energy's programs are a reminder that municipal utilities can implement robust efficiency programs independent of state government decisions. Austin residents have access to significantly more than Houston or Dallas residents from a utility standpoint.

The Texas Climate Reality: Why Some Upgrades Work Without Rebates

Texas's extreme summer heat creates a strong self-funding case for certain efficiency upgrades that doesn't depend on rebates to pencil out.

Insulation in Attics

Cooling a poorly insulated Texas attic through a Houston summer can add $800–$1,200 to annual electricity costs. Attic insulation improvement costs $2,000–$4,000. Without any rebate, payback is 2–4 years. It's one of the few upgrades that makes financial sense in Texas on its own merits.

Heat Pump Efficiency Upgrade

Replacing a 10-year-old 13 SEER central A/C with a modern 18–22 SEER heat pump in Texas climate saves approximately $400–$800 annually in cooling costs alone. The heat function is a bonus — Texas winters are mild enough that even a standard heat pump (not cold-climate) works well. Without rebates, payback on a $6,000–$10,000 installation runs 8–12 years. Not exceptional, but reasonable over the equipment's 15–20 year lifespan.

Smart Thermostats

A $250 Ecobee or Nest Learning Thermostat pays back in less than one summer in Texas for homes that aren't already optimizing schedules. The Oncor and CenterPoint $50–$100 rebates are modest, but the payback without any rebate is already under 12 months in many Texas homes.

Low-Income Texas Programs

While HEAR and HOMES are unavailable, low-income Texas residents have some options:

Weatherization Assistance Program (WAP)

WAP is a federal program administered by the Texas Department of Housing and Community Affairs (TDHCA). Texas does participate in WAP, meaning income-qualified Texans (200% of federal poverty level) can access free weatherization — insulation, air sealing, heating system tune-ups — regardless of the state's decisions about HEAR/HOMES.

Apply through TDHCA or call 211 for referral to local WAP providers. Wait times in Texas can be substantial — 6–18 months — due to high demand relative to program capacity.

LIHEAP in Texas

LIHEAP (Low-Income Home Energy Assistance Program) is also a federal program Texas participates in. It helps income-qualified Texans (typically at or below 150% federal poverty level) pay energy bills. In Texas, LIHEAP is particularly valuable because summer cooling costs can be extreme and life-threatening for vulnerable households.

Texas TDHCA Programs

TDHCA operates several housing assistance programs that include energy components. The HOME Investment Partnerships Program and Community Development Block Grants fund some local weatherization and housing rehabilitation work that includes energy efficiency improvements. Contact your local TDHCA office or community development corporation for current availability.

Property-Assessed Clean Energy (PACE) Financing in Texas

Texas has an active Commercial PACE program but a more limited Residential PACE framework. In municipalities that have opted in (some Texas cities have), PACE allows homeowners to finance energy improvements through a property tax assessment — paying back the cost over time through property taxes rather than upfront.

This isn't a rebate, but it addresses the upfront cost barrier for improvements that have long payback periods without rebates. Ask your municipality's sustainability office whether Residential PACE is available in your area.

What Texas Homeowners Should Do

Given the limited rebate environment, Texas homeowners should prioritize by economic impact without rebates:

Attic insulation and air sealing — Highest ROI in hot climate, short payback even without rebates
Smart thermostat — Fast payback, utility rebate available, reduces A/C peak demand
High-efficiency A/C or heat pump upgrade — At time of equipment replacement, the efficiency premium pays back in cooling savings
Austin Energy programs (Austin residents only) — Take full advantage of the unusually strong municipal utility programs
WAP and LIHEAP (income-qualified) — These federal programs apply regardless of state's HEAR/HOMES position

Use the heat pump efficiency calculator to estimate your specific cooling cost savings with a higher-efficiency system, and check Texas utility rebates for the most current program offerings.

The Political Reality and What Could Change

Texas's position on federal energy programs is driven by current state government priorities. A change in state administration or a significant grid reliability event — like the 2021 Winter Storm Uri which left millions without power and heat — can shift political calculations quickly.

After Uri, there was substantial discussion in Texas about building resilience through distributed resources (solar, storage, efficient homes that require less energy). Whether that translates to greater engagement with federal efficiency programs in future years depends on political dynamics that are beyond the scope of this guide.

What's clear: Texas homeowners face a more challenging rebate environment than most other large states. The economic case for certain improvements still holds; the financial burden is just higher without the HEAR/HOMES stack available elsewhere.