Arizona Energy Rebates 2026
Arizona residents in 2026 can access federal HEAR and HOMES rebates through programs administered by the Arizona Department of Housing and the Arizona Commerce Authority. Arizona Public Service (APS) and Salt River Project (SRP) are the two dominant utilities in the Phoenix metro area, and both offer home energy efficiency programs. While Arizona's exceptional solar potential made 25D credits attractive, those federal credits expired December 31, 2025.
HOMES Rebate Program in Arizona
| 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 |
Arizona HOMES rebates are administered through the Arizona Department of Housing in partnership with the Arizona Commerce Authority. Households at or below 80% AMI can receive up to $8,000 for whole-home energy retrofits with measurable savings, while those at 80–150% AMI may receive up to $4,000. Given Arizona's hot climate, cooling system upgrades and insulation improvements often yield the highest energy savings.
HEAR (HEEHRA) Rebates in Arizona
| 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.
Arizona State Incentive Programs
APS Home Performance with ENERGY STAR
Arizona Public Service's program offering rebates for whole-home energy audits, insulation, air sealing, and cooling system upgrades for APS residential customers in the Phoenix metro and central Arizona.
Learn moreSRP Home Performance Program
Salt River Project's efficiency rebate program providing incentives for insulation, duct sealing, smart thermostats, and HVAC upgrades for SRP customers in east Phoenix metro, Scottsdale, Mesa, and Chandler areas.
Learn moreArizona Weatherization Assistance Program
Federally funded weatherization services for income-eligible Arizona households, with a focus on cooling efficiency, insulation, and air sealing in the state's extreme desert climate.
Learn moreUtility Rebate Programs in Arizona
Area Median Income (AMI) in Arizona
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) |
|---|---|---|
| Phoenix-Mesa-Chandler MSA | $73,120 | $137,100 |
| Tucson MSA | $57,600 | $108,000 |
| Flagstaff MSA | $65,600 | $123,000 |
Frequently Asked Questions
What energy rebates are available in Arizona in 2026?
Arizona residents in 2026 can access HEAR rebates (up to $14,000 for heat pump HVAC, water heaters, and electric appliances) and HOMES rebates (up to $8,000 for whole-home energy improvements). APS and SRP offer additional utility-funded rebates for insulation, smart thermostats, and cooling upgrades. Given Arizona's extreme heat, cooling efficiency improvements — including heat pump HVAC systems, which are efficient in both heating and cooling — provide particularly large energy savings.
Are federal tax credits still available in Arizona?
No. The One Big Beautiful Bill Act (P.L. 119-21, signed July 4, 2025) terminated both Section 25C (energy efficiency) and Section 25D (solar, battery, geothermal) federal tax credits for installations completed after December 31, 2025. This is particularly significant for Arizona given its exceptional solar potential — the 26–30% federal solar tax credit that made rooftop solar so financially attractive in prior years is no longer available for new 2026 installations. Arizona homeowners who went solar before December 31, 2025 can still claim those credits on their 2025 return.
Do APS and SRP offer rebates that stack with HEAR and HOMES?
Yes, both major Phoenix-area utilities offer rebate programs that can be combined with federal HEAR and HOMES rebates. APS Home Performance with ENERGY STAR and SRP's Home Performance Program both provide rebates for insulation, duct sealing, smart thermostats, and cooling/HVAC upgrades. These utility rebates are available regardless of income. Stacking a HEAR rebate (income-based) with an APS or SRP utility rebate can significantly reduce the cost of a heat pump or insulation project.
What are the income limits for HEAR rebates in Arizona?
HEAR rebates target Arizona households earning at or below 150% of Area Median Income (AMI). In the Phoenix-Mesa metro, 80% AMI for a 4-person household is approximately $73,120; in Tucson, it's about $57,600. Households below 80% AMI receive maximum rebate amounts (up to $14,000 total), while those between 80% and 150% AMI receive proportionally scaled rebates. Income is self-certified but may be verified by the program administrator.
Is solar still worth it in Arizona without the federal tax credit?
Solar can still be financially viable in Arizona even without the 25D federal tax credit, given the state's exceptional solar irradiance — among the highest in the country. Arizona offers a state solar tax credit of 25% (up to $1,000), and net metering policies allow homeowners to receive credit for excess energy. However, the loss of the 26–30% federal credit increases payback periods significantly. Arizonans considering solar should get multiple quotes and carefully evaluate the revised economics without the federal incentive.
How to Claim Your Arizona Rebates
