Our goal is to help you take advantage of these home energy rebates to improve the comfort and efficiency of your home, and maximize the financial incentives available to you.
How the Efficiency Arizona program works
There are two rebate programs under the IRA Home Energy Rebate umbrella:
- HEAR – Home Electrification and Appliance Rebates
- HOMES – Home Efficiency Rebates
Currently, only the HEAR program is active. We expect HOMES to launch in late 2026, so this article focuses exclusively on the HEAR program.
The HEAR program is live in Arizona and offers up to $14,000 in rebates to low- and moderate income households. Many AHP customers are receiving combined Efficiency Arizona and utility rebates averaging $10,700.
As a Qualified Contractor, The Cooling & Plumbing Co. has helped dozens of homeowners successfully participate in this program. We’re sharing what we’ve learned to help you do the same.
HEAR Rebate Amounts
HEAR offers point-of-sale rebates to low- and moderate-income households who switch from gas to electric ENERGY STAR® appliances. Eligible rebates include:
- $8,000 – Electric heat pump (space heating/cooling)
- $4,000 – Electrical panel upgrade
- $2,500 – Electrical wiring
- $1,750 – Heat pump water heater
- $1,600 – Insulation, air sealing, and ventilation
- $840 – Heat pump clothes dryer and/or electric stove, cooktop, range, or oven
Important: Projects must be approved before installation. Completed or in-progress jobs are not eligible unless approved through the program and installed by a Qualified Contractor.
What is the Efficiency Arizona Program?
Efficiency Arizona is funded by the Inflation Reduction Act of 2022 (IRA), which allocated energy rebate funds to individual states. Arizona received $153 million, administered by the Governor’s Office of Resiliency.
The program aims to:
- Help low- and moderate-income households afford high-efficiency electric appliances.
- Reduce household energy bills.
- Cut greenhouse gas emissions by replacing fossil fuelappliances.
Our experience shows it’s already achieving the first two goals.
The Rebate Experience
Since the program has launched, the average rebate awarded through Efficiency Arizona and utilities is approximately $10,700.
We’ve seen:
- Up to $14,000 in HEAR rebates
- TEP utility rebates up to $1,850
- Combined rebate totals that cover 80-95% of project costs for low-income households
Program Insights from the Field
From our experience, here’s what Arizona homeowners should know:
- Application processing: Typically 3-8 weeks
- Rebates rarely cover 100% of a full HVAC replacement
- Low-income customers often receive 75-95% coverage
- Only ENERGY STAR-certified heat pumps qualify
- System type/size impacts total project cost
- Gas-to-electric conversions often require significant electrical upgrades (covered by up to $6,500 in rebates)
- Stacking rebates (program + utility) significantly reduces costs
- One customer has reported up to 34% drops in utility bills after installation
Example:
A Phoenix homeowner received a $14,000 HEAR rebate plus a $300 TEP rebate, paying only $175 out of pocket for a new Trane 15.2 SEER2 heat pump system.
Moderate-income homeowners typically receive 50% of project costs, up to $14,000.
Choosing a Contractor
Participation requires using an Efficiency Arizona Qualified Contractor. You’ll be assigned one, or you can select your preferred contractor from a list.
How to Apply
Visit EfficiencyArizona.com to:
- Review eligibility criteria and income tiers
- Start your application
If you’re not enrolled in a qualifying assistance program, you’ll need to upload income documentation for each adult in your household. Accepted documents include:
- Pay stubs (last 30 days)
- W-2s, 1099s, tax returns (most recent year)
- Benefit letters
- Bank statements for child support, alimony, etc.
Income Eligibility
Rebates are based on your household income relative to your region’s Area Median Income (AMI):
- S80% of AMI (low income): Rebates cover up to 100% of project cost
- 80-150% of AMI (moderate income): Rebates cover 50% of project cost, up to $14,000
Use the 2026 Arizona AMI tables on the Efficiency Arizona website to check your eligibility.
Categorical Eligibility
If anyone in your household is enrolled in a federally recognized assistance program (e.g., LIHEAP, SNAP, WIC, SSI, Medicaid, housing assistance). In that case, you can provide a current enrollment letter instead of income documentation.