Alabama Energy Rebates 2026
Alabama's federal HOMES and HEAR rebates are administered by Alabama Department of Economic and Community Affairs (ADECA), and as of July 2026 they have not launched. Alabama's HOMES and HEAR rebate programs are still under development by ADECA, with no launch date set and no applications accepted. No Alabama HOMES or HEAR rebate can be claimed today. The utility and weatherization programs listed further down this page are available today. The 25C and 25D federal tax credits expired December 31, 2025.
Program status and income limits on this page were last checked against official state and federal sources on . These programs change without notice.
HOMES Rebate Program in Alabama
| Income Level | Max Rebate | Cost Coverage |
|---|---|---|
| Low income (≤80% AMI) | Up to $8,000 | 80% of project cost |
| Moderate income (80-150% AMI) | Up to $4,000 | 50% of project cost |
| Above 150% AMI | Not eligible | N/A |
Alabama's HOMES and HEAR rebate programs are still under development by ADECA, with no launch date set and no applications accepted. “This program is under development. The date in which eligible households will be able to access these rebates has not been determined.” Source: Alabama Department of Economic and Community Affairs (ADECA).
Official HOMES Program PageHEAR (HEEHRA) Rebates in Alabama
| Equipment | Max Rebate |
|---|---|
| Heat Pump HVAC | Up to $8,000 |
| Electrical Panel | Up to $4,000 |
| Wiring Upgrade | Up to $2,500 |
| Heat Pump Water Heater | Up to $1,750 |
| Insulation & Weatherization | Up to $1,600 |
| Electric Stove/Cooktop | Up to $840 |
Maximum total: $14,000 per household (low-income, ≤80% AMI). Moderate income (80-150% AMI) can receive up to $7,000.
Official HEAR Program PageFind Pre-Screened Installers in Alabama
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Alabama State Incentive Programs
Alabama Power EnergySelect and Efficiency Programs
Alabama Power offers its EnergySelect program with rebates for qualifying high-efficiency heat pump upgrades, smart thermostats, and whole-home energy assessments. Alabama Power customers should check the current EnergySelect page for rebate amounts, as programs are updated annually. Rebates can be stacked with federal HEAR incentives.
Learn moreAlabama Weatherization Assistance Program
Federally funded weatherization services for income-qualified Alabama households (at or below 200% of federal poverty level). Delivered through ADECA and local Community Action Agencies. Focuses on insulation, air sealing, and cooling system improvements given Alabama's hot climate.
Learn moreArea Median Income (AMI) in Alabama
HOMES and HEAR rebate amounts depend on your household income relative to the Area Median Income in your area. AMI varies by county and household size.
| Area | 80% AMI (Family of 4) | 150% AMI (Family of 4) |
|---|---|---|
| Jefferson County | $83,300 | $156,100 |
| Madison County | $92,100 | $172,600 |
| Mobile County | $66,650 | $124,900 |
| Montgomery County | $71,050 | $133,200 |
| Baldwin County | $81,800 | $153,300 |
| Tuscaloosa County | $74,400 | $139,500 |
Eligibility is set by county and household size. The 80% figures are the HUD FY2026 income limits published for each county and are reproduced as-is. HUD does not publish a 150% limit, so that column is computed from the 80% limit; checked against Minnesota's official 2026 county table, the method lands within $200 on every county, but where your state publishes its own table, that table governs. Figures are for a 4-person household and change with household size.
Use Our Calculator to Check EligibilityBefore you spend money on this
Energy Rebate Calculator is an independent website. It is not affiliated with, endorsed by, or operated by the U.S. Department of Energy, Alabama, or any other government agency, and nothing on this page is an offer, an application, or a promise of payment.
Federal and state rebate programs launch, pause, change their amounts and run out of funds without notice, and eligibility rules differ by county, household size, housing type and sometimes by region within a state. Most programs also refuse to pay for work completed before their launch date. Figures here are published to help you understand roughly where you stand, not to be relied on as the final word.
Confirm your eligibility and the current terms directly with the administering agency, and get written confirmation, before you sign a contract or buy equipment. Where this page cites an official source, that source governs. If you spot something out of date on this page, tell us and we will correct it.
Data vintage. The rebate data on this page was last updated on . We publish this date so you can judge for yourself how current the figures are.
Frequently Asked Questions
What energy rebates are available in Alabama in 2026?
(3) Alabama Power utility rebates for Smart Thermostats, Heat Pump Water Heaters, and High-SEER Heat Pumps
Are federal tax credits still available in Alabama?
No. The One Big Beautiful Bill Act (OBBBA, P.L. 119-21, signed July 4, 2025) terminated the Section 25C and 25D federal energy tax credits for installations after December 31, 2025. If you installed qualifying equipment before that date, you can still claim the credit on your 2025 tax return. For 2026 installations, HEAR and HOMES rebates are the primary federal incentive paths.
Do many Alabama households qualify for maximum HEAR rebates?
Yes. Alabama has one of the lower median incomes in the US, meaning a higher proportion of households fall at or below the 80% AMI threshold for maximum HEAR coverage. In the Mobile area, 80% AMI for a 4-person household is approximately $56,880, and in Birmingham approximately $64,720. Many Alabama families qualify for 100% of heat pump cost coverage up to $8,000 under HEAR.
Is upgrading a heat pump in Alabama worth it?
Yes, particularly for homes with older SEER 10-13 heat pump or central AC systems. Alabama's long, hot summers mean air conditioning is running 6+ months per year. Upgrading to a SEER2 18+ heat pump can reduce cooling costs by 25–40% annually. With HEAR rebates (up to $8,000 for qualifying households) and Alabama Power utility incentives, the payback period on an efficiency upgrade is often under 5 years.
Who administers HEAR and HOMES rebates in Alabama?
The Alabama Department of Economic and Community Affairs (ADECA) administers both the HEAR and HOMES rebate programs in Alabama. Contact ADECA or visit their website to find participating contractors and current program details. Local Community Action Agencies across Alabama can also help income-qualified households navigate the rebate process and access additional weatherization services.
How to Claim Your Alabama Rebates
