Tennessee Energy Rebates 2026
Tennessee's federal HOMES and HEAR rebates are administered by Tennessee Department of Environment and Conservation (TDEC), State Energy Office, and as of July 2026 they have not launched. Tennessee received conditional DOE approval but has not launched; the state says funding for its rebate programs is not yet available. No Tennessee 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 Tennessee
| 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 |
Tennessee received conditional DOE approval but has not launched; the state says funding for its rebate programs is not yet available. “Funding for the Tennessee IRA Home Energy Rebate Programs is not yet available.” Source: Tennessee Department of Environment and Conservation (TDEC), State Energy Office.
Official HOMES Program PageHEAR (HEEHRA) Rebates in Tennessee
| 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 Tennessee
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Tennessee State Incentive Programs
TVA EnergyRight Program
TVA's flagship energy efficiency program offering rebates and financing for heat pumps, insulation, and weatherization through TVA's network of over 150 local power company distributors across Tennessee and neighboring states.
Learn moreTennessee Weatherization Assistance Program
State-administered federal WAP providing free weatherization services for income-eligible Tennessee households through the Tennessee Department of Environment and Conservation.
Learn moreNashville Electric Service (NES) Energy Efficiency
NES offers rebates for smart thermostats, LED lighting, and home energy audits for customers in the Nashville metro area, complementing TVA EnergyRight and federal HEAR/HOMES programs.
Learn moreArea Median Income (AMI) in Tennessee
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) |
|---|---|---|
| Davidson County | $92,900 | $174,100 |
| Shelby County | $74,150 | $139,000 |
| Knox County | $82,950 | $155,500 |
| Hamilton County | $77,900 | $146,000 |
| Montgomery County | $75,050 | $140,700 |
| Sullivan County | $65,450 | $122,700 |
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, Tennessee, 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 Tennessee in 2026?
Tennessee 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), administered by TDEC through TVA's local power company network. TVA's EnergyRight program provides additional rebates for heat pumps and weatherization. Nashville Electric Service, Memphis Light Gas & Water, and Knoxville Utilities Board offer their own efficiency incentives as well.
Not confirmed. TVA EnergyRight rebates are confirmed active, but we could not reach tn.gov to confirm the state's role or the federal programme status in Tennessee. We are flagging this rather than removing it, because the programme does appear to exist. Confirm the current amounts and conditions with TDEC and TVA EnergyRight before you commit to a project.
Are federal tax credits still available in Tennessee?
No. The One Big Beautiful Bill Act (P.L. 119-21, signed July 4, 2025) eliminated Section 25C and 25D federal energy tax credits for installations after December 31, 2025. Tennessee homeowners who installed qualifying heat pumps, insulation, windows, solar panels, or other eligible equipment in 2025 or earlier can still claim those credits on their 2025 federal tax return. For 2026, HEAR and HOMES rebates plus TVA EnergyRight incentives are the primary federal and utility benefits available.
How does TVA EnergyRight work with HEAR and HOMES in Tennessee?
TVA EnergyRight is distributed through TVA's network of local power company distributors across Tennessee. It offers rebates for heat pump water heaters, heat pump HVAC systems, and weatherization that can complement federal HEAR and HOMES rebates. Customers should contact their local power company distributor (NES, Memphis LG&W, KUB, or one of 150+ others) to access EnergyRight rebates and link them with HEAR/HOMES applications. TVA's relatively low electricity rates (~10–12¢/kWh) mean heat pump payback periods in Tennessee are somewhat longer than in higher-rate states.
What are the income limits for HEAR and HOMES rebates in Tennessee?
HEAR rebates are available to Tennessee households earning up to 150% of Area Median Income (AMI), with maximum rebates for those at or below 80% AMI. In the Nashville MSA, 80% AMI for a 4-person household is approximately $77,600; in Memphis, about $57,600; and in Knoxville, approximately $65,600. Households that qualify for utility assistance programs like LIHEAP often automatically fall within HEAR income eligibility thresholds.
Does Tennessee have any state energy tax credits?
Tennessee does not have a personal state income tax, so there are no state-level energy tax credits. Tennessee residents rely entirely on federal HEAR and HOMES rebates, TVA EnergyRight incentives, and local utility programs for energy upgrade incentives. The absence of the 25C and 25D federal tax credits (expired December 31, 2025) is therefore more impactful in Tennessee than in states that had complementary state tax incentives, making HEAR and HOMES the critical remaining federal benefit for Tennessee homeowners.
How to Claim Your Tennessee Rebates
