Tennessee Energy Rebates 2026
Tennessee's energy landscape is dominated by the Tennessee Valley Authority (TVA) and its network of local power company distributors including Memphis Light Gas & Water, Nashville Electric Service (NES), and Knoxville Utilities Board (KUB). HEAR and HOMES rebates in 2026 are administered through the Tennessee Department of Environment and Conservation (TDEC). TVA's energy efficiency programs provide additional incentives for customers across the state.
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 HOMES rebates are administered through TDEC in coordination with TVA's local power company distributors. Households at or below 80% AMI can receive up to $8,000 for qualifying whole-home retrofits, while moderate-income households (80–150% AMI) may receive up to $4,000. TVA's EnergyRight program works alongside HOMES for participating distributors.
HEAR (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.
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) |
|---|---|---|
| Nashville-Davidson-Murfreesboro MSA | $77,600 | $145,500 |
| Memphis MSA (TN-MS-AR) | $57,600 | $108,000 |
| Knoxville MSA | $65,600 | $123,000 |
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.
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
