2026 Quick Summary: What Is Actually Live
Oncor HEE SOP
$2,000-$3,400
Per-project cap by tonnage, paid to your contractor
Federal Tax Credit
$0
25C ended December 31, 2025
Manufacturer Rebates
Seasonal
Changes every few months, ask your contractor
The Oncor figures are per-project caps, not flat payments. The actual incentive is calculated from your system's modeled kW and kWh savings, so most jobs land below the cap. It also never reaches you directly, which is the single most misunderstood thing about this program.
Oncor Rebate Programs
Oncor delivers power to most of North Texas including Frisco, Plano, McKinney, Allen, Prosper, The Colony, Little Elm and Addison. Its residential programs sit under the Take A Load Off Texas banner, and the one that matters for a system replacement is the Home Energy Efficiency Standard Offer Program.
Read this before anything else: Oncor does not pay you
Oncor's own program manual is unambiguous. "Oncor will pay the service provider the incentive payment within 45 days after the date Oncor approves the applicable production report." The money goes to an approved participating service provider, who is expected to pass it through by discounting your invoice.
There is no homeowner application, no online portal for you to submit to, no check in the mail and no 90-day homeowner deadline. If a page tells you to log in and track your rebate, it is describing a program that does not exist. The practical consequence: your contractor's enrollment status decides whether you get anything at all, so ask before you sign.
How much it is worth
HVAC system replacement incentives are calculated at $/kW and $/kWh from the system's modeled savings, then capped per project by tonnage:
| System Size | Per-Project Incentive Cap |
|---|---|
| 2 ton | $2,000 |
| 2.5 ton | $2,200 |
| 3 ton | $2,600 |
| 3.5 ton | $2,900 |
| 4 ton | $3,200 |
| 5 ton | $3,400 |
These are ceilings, not standard payments. A typical replacement lands somewhere below the cap depending on what the old system was and what replaces it. Even so, this is far more generous than the flat few-hundred-dollar figures that circulate online.
The rules that decide eligibility
- Equipment must hit 11.6 EER or greater on all new systems and 6.8 HSPF or greater on heat pumps. New construction is separate and only 18+ SEER qualifies.
- Cooling capacity must be at least 1.5 tons and under 65,000 Btu/hour, roughly 5.4 tons.
- Replacing a working system requires a photo of the old condenser label and your acknowledgement that it was running.
- Work must be completed inside the production period, February through November 15, 2026, and funding is capped.
Oncor's other residential programs
| Program | Covers | Who Gets Paid |
|---|---|---|
| Home Energy Efficiency Standard Offer Program (HEE SOP) | HVAC replacement, ceiling insulation, air infiltration, duct work | Oncor pays your approved service provider; they discount your invoice |
| Low-Income Weatherization | Low- to no-cost efficiency upgrades for income-qualified homes | No customer cost, delivered through approved providers |
| Retail Products Program | Smart thermostats, smart plugs, power strips, heat pump water heaters, room ACs | Discount taken off the price at purchase |
| Residential Load Management | Demand response during peak events | Enrolled through a participating provider, not Oncor directly |
| New Homes / Multifamily Improvements | Efficiency measures in new construction and apartments | Paid to the builder or property owner |
Smart thermostats: these come through the Retail Products Program, not the HVAC program. It is a discount of up to $65 taken off the price when you buy, through the Oncor marketplace, a reserved retailer coupon, or in-store at Home Depot, Lowe's and Dollar Tree. It is not a free thermostat and it does not pay you an annual credit. See our smart thermostat guide.
CoServ: No Equipment Rebates
CoServ serves parts of Denton County, Collin County and the outer edges of Frisco, Prosper, The Colony and Little Elm. If you are budgeting a replacement on the assumption CoServ will hand you a few hundred dollars back, stop now.
In CoServ's own words:
"CoServ does not currently offer incentives or rebates for solar or other energy efficiency upgrades."
There is a structural reason for this, and it is worth understanding. CoServ is an electric cooperative, not a municipal utility and not a regulated transmission and distribution utility like Oncor. The energy efficiency programs Oncor runs exist because the Public Utility Commission requires them of investor-owned TDUs and funds them through delivery charges. Co-ops sit outside that mandate. Same region, same weather, completely different rules.
CoServ does run genuine programs. They are just not equipment rebates:
| Program | What It Is | Worth |
|---|---|---|
| Free home energy assessment | Phone, on-site with infrared camera, or blower door test ($75) | $100+ value, free to members |
| Rush Hour Rewards | $10 bill credit each summer month (June to September) with a supported Google Nest thermostat | Up to $40/year |
| PeakTime Perks — Tesla battery | CoServ uses your Powerwall during up to 125 peak events, keeping a 20% backup reserve | $30/month, $360/year per battery |
| PeakTime Perks — EV charging | Off-peak charging incentives for electric vehicle owners | Varies |
Source: CoServ Energy Saving Programs. The free assessment is the one most people never take up, and on an older house it usually finds more money than any rebate would have.
Retail Electric Providers
TXU Energy, Green Mountain, Reliant and the rest are retailers. They sell you the electricity; Oncor delivers it. Retailers do run promotions, and some are worth having, but they are marketing offers rather than standing rebate schedules.
What you will typically find:
- Free nights or weekends plans. Real and useful if you can shift laundry, dishwashing and pre-cooling into the free window. The energy is not free overall; the daytime rate carries it.
- Thermostat offers tied to demand response enrollment. Usually a discounted or bundled device in exchange for letting the retailer nudge your setpoint on peak days.
- Sign-up credits. Bill credits for switching, often banded to a specific monthly usage level.
I am not publishing a table of REP rebate amounts, because these offers change constantly and any number printed here would be wrong within a quarter. Check the Electricity Facts Label and the offer terms on the retailer's own site the week you are shopping.
One thing worth knowing: a REP promotion has nothing to do with the Oncor incentive on your installation. They come from different parties and neither reduces the other.
Federal Tax Credits (Section 25C) — Expired
The Inflation Reduction Act had extended these energy efficiency tax credits through 2032, but the One Big Beautiful Bill Act ended them for anything placed in service after December 31, 2025. The table below is kept for reference only: it applies if you completed an install during 2025 and are still filing for it. Nothing here is claimable on a 2026 installation.
| Equipment | Credit | Requirement | Annual Limit |
|---|---|---|---|
| Central Air Conditioner | $600 | SEER2 16+, EER2 12+ | $600 |
| Heat Pump (Ducted) | $2,000 | CEE Highest Tier | $2,000 (separate) |
| Heat Pump (Ductless Mini-Split) | $2,000 | SEER2 16+, HSPF2 9+ | $2,000 (separate) |
| Gas Furnace | $600 | 97% AFUE or higher | $600 |
| Boiler | $600 | 95% AFUE or higher | $600 |
| Smart Thermostat | $150 | ENERGY STAR certified | $1,200 combined |
| Heat Pump Water Heater | $2,000 | UEF 2.2+, NEEA Tier 3 | $2,000 (separate) |
| Electrical Panel Upgrade | $600 | 200A for heat pump install | $1,200 combined |
| Insulation/Air Sealing | 30% of cost | Meets IECC standards | $1,200 combined |
How the Limits Worked (2025 installs only)
- • $1,200 combined limit: AC, furnace, insulation, windows and electrical panel shared this cap
- • $2,000 separate limit: Heat pumps and heat pump water heaters had their own additional limit
- • No longer applicable: spreading upgrades across tax years no longer buys you anything, because there is no annual allowance left to reset
Texas HEAR and HOMES: Not Available
SECO's own status line, retrieved August 22, 2026:
"Rebates are not currently available."
The programs remain in the planning and design phase. Texas received $690 million to run them. SECO has engaged APTIM Federal Services to help with design and implementation, and states that a launch date will be established once the state has approval from DOE. There is no date.
These are the Inflation Reduction Act rebates you have probably read about, sometimes under the older name HEEHRA, promising up to $8,000 toward a heat pump for income-qualified households. The design targets are real. The program is not running.
The practical advice is short. Do not sign a contract contingent on these rebates. If a salesperson offers to lock in your HEAR money now, or prices a job assuming $8,000 arrives later, walk away. Nobody can pre-approve you for a program with no approved contractors and no launch date.
If your system is failing today, price the job on what exists today: the Oncor incentive through an approved provider, and whatever manufacturer promotion is running. When HEAR launches we will update this page. Until then, plan without it. Full status at SECO's IRA rebates page.
Real North Texas Savings Examples
Here is what stacking actually looks like in 2026 with the federal credit gone. The Oncor line shows a realistic calculated incentive with the tonnage cap beside it, and it reaches you as a discount on the invoice rather than a payment. Note the last example: same house, same equipment, different side of the service boundary, and the number is zero. Choosing a top-rated AC brand with a higher efficiency rating raises the calculated incentive, since it is driven by modeled savings. For a detailed breakdown of heat pump pricing, see our heat pump installation cost guide.
Heat Pump Full System Replacement
3-ton Carrier Infinity with Greenspeed
Base Cost
$16,500
Oncor Incentive
-$1,400 (capped at $2,600 for 3 ton)
Federal Credit
-$0
Manufacturer
-$500
Total Savings
$1,900
Your Net Cost
$14,600
AC + Furnace Replacement
4-ton Trane XV18 + S9V2 Furnace
Base Cost
$14,200
Oncor Incentive
-$1,600 (capped at $3,200 for 4 ton)
Federal Credit
-$0
Manufacturer
-$400
Total Savings
$2,000
Your Net Cost
$12,200
Mini-Split Heat Pump System
Mitsubishi MXZ-4C36NA Multi-Zone
Base Cost
$12,800
Oncor Incentive
-$1,300 (capped at $2,600 for 3 ton)
Federal Credit
-$0
Manufacturer
-$300
Total Savings
$1,600
Your Net Cost
$11,200
Budget AC Only, CoServ Territory
3.5-ton Goodman GSXC18
Base Cost
$7,200
Oncor Incentive
-$0 (CoServ has no equipment rebate)
Federal Credit
-$0
Manufacturer
-$0
Total Savings
$0
Your Net Cost
$7,200
6 Rebate Mistakes That Cost You Money
I've seen homeowners lose hundreds (sometimes thousands) by making these avoidable errors.
Hiring a contractor who is not an Oncor participating service provider
Costs: The entire incentivePrevention: The HEE SOP money only flows through approved providers. Ask before you sign, not after.
Waiting for the incentive check in the mail
Costs: Weeks of chasing nothingPrevention: Oncor pays the provider, not you. Your benefit is a lower invoice, agreed before the job.
Booking the job in December
Costs: The entire incentivePrevention: The production period runs February to mid-November. Work outside it is not eligible.
Assuming your co-op has a rebate
Costs: A budget built on money that does not existPrevention: CoServ states plainly it offers no equipment rebates. Confirm your utility before you plan around one.
Signing a contract contingent on the Texas HEAR rebate
Costs: Potentially the whole jobPrevention: SECO has not launched it. Do not commit to anything that depends on it.
Buying below the program efficiency floor
Costs: The entire incentivePrevention: The 2026 manual requires 11.6 EER or better on new systems, 6.8 HSPF or better on heat pumps.
How to Apply: Step-by-Step Process
Follow this process to maximize your rebates and avoid leaving money on the table.
Confirm Who Delivers Your Power
Look at the delivery line on your bill, not the retailer name. Oncor covers most of Frisco, Plano, McKinney, Allen, Prosper, The Colony, Little Elm and Addison. Slices of Denton and Collin County are CoServ, which has no equipment rebate at all.
Hire an Oncor Participating Service Provider
This is the step that decides everything. Homeowners cannot apply to Oncor. If your contractor is not enrolled in the program, there is no incentive on your job, no matter what equipment you buy.
Confirm Equipment Clears the Program Floor
The 2026 HEE SOP manual requires 11.6 EER or greater on all new systems and 6.8 HSPF or greater on heat pumps. New construction only qualifies at 18+ SEER. Get model numbers before purchase.
Get the Incentive Written Into Your Quote
Since the money goes to the contractor, the only way you see it is as a discount on the invoice. Ask for the incentive to be shown as a separate line before you sign.
Book Inside the Production Period
Work must be completed during the program production period, running February through November 15, 2026. Funding is capped and first-come, first-served, so late-year jobs can find the budget already spent.
Let the Provider File the Paperwork
Your contractor submits the production report. Oncor pays them within 45 days of approving it. You have no portal to log into and no deadline to miss.
Keep Your Own Copies Anyway
Invoice with model numbers, AHRI certificate, permit and photos of the equipment labels. You will want them for warranty claims and resale even though the incentive does not require you to file.
Documentation Checklist
Keep all of these documents organized—you'll need different ones for different rebate programs.
| Document | Required For | Purpose |
|---|---|---|
| AHRI Certificate | All | Proves matched system efficiency ratings |
| Contractor Invoice | All | Shows itemized costs and model numbers |
| Equipment Labels Photo | Oncor HEE SOP | Your provider needs a condenser label photo showing the old system was running |
| Permit Final Inspection | Oncor HEE SOP | Proves code-compliant installation |
| IRS Form 5695 | 2025 installs only | Attachment to the 2025 return; 25C is closed for later work |
| Manufacturer Warranty Card | Manufacturer | Needed for manufacturer rebates |
Tip: Create a folder (physical or digital) for your HVAC installation. Take photos of equipment labels before the installation is complete—it's much harder to access them later.
Best Times to Buy: Manufacturer Rebate Seasons
Manufacturer rebates are seasonal. Here's what to expect throughout the year.
| Season | Typical Rebates | Notes |
|---|---|---|
| Spring (March-May) | $300-$1,200 | Best selection, contractors not overwhelmed |
| Summer (June-August) | $100-$500 | High demand, fewer promotions |
| Fall (September-November) | $400-$1,500 | End of cooling season closeouts |
| Winter (December-February) | $200-$800 | Slow season, negotiating power |
Best Time to Buy
Fall (September-November) typically offers the best combination of rebates, contractor availability, and equipment selection. You're not in emergency mode and can negotiate.
Worst Time to Buy
July during a heat wave. Contractors are overwhelmed, manufacturers know demand is high, and you have no negotiating leverage. Emergency replacements almost never maximize rebates.
Current Manufacturer Rebates (January 2026)
These promotions change every 2-3 months. Ask your contractor what's currently available.
Carrier Cool Cash
- • Infinity System + Greenspeed: Up to $1,665
- • Infinity System: Up to $1,200
- • Performance Series: Up to $500
- • Comfort Series: Up to $150
Trane Rebates
- • XV System: Up to $1,200
- • XR System: Up to $800
- • XL System: Up to $600
- • CleanEffects air cleaner: $200
Lennox Rebates
- • Ultimate Comfort System: Up to $1,600
- • XC25/XP25 Heat Pump: Up to $1,200
- • XC21/XP21 Systems: Up to $800
- • Merit Series: Up to $400
Rheem & Goodman
- • Rheem Prestige Series: Up to $500
- • Rheem Classic Plus: Up to $300
- • Goodman GSXC18: $200-$400
- • Amana AVXC20: Up to $500
*Rebate amounts and availability vary by region and dealer. Confirm current promotions with your contractor.
What Is an AHRI Certificate (And Why You Need It)
The AHRI certificate is the most important document for HVAC rebates. Here's what it proves and why it matters.
What AHRI Certification Proves
- Matched System: Your outdoor condenser and indoor evaporator coil are tested together and certified to achieve the stated efficiency.
- Verified Ratings: SEER2, EER2, and HSPF2 ratings are third-party verified, not just manufacturer claims.
- Rebate Eligibility: Without AHRI certification, utilities and IRS may reject your rebate/credit application.
Red Flag: No AHRI Certificate
If your contractor can't or won't provide an AHRI certificate, they may have:
- • Installed mismatched equipment (common with "gray market" parts)
- • Used a coil from a different manufacturer than the condenser
- • Installed equipment that doesn't meet stated efficiency ratings
Verify your system at ahridirectory.org using the model numbers from your equipment.