Alabama

Heat pump incentives in Alabama

No statewide rebate program

verified 2026-07

Incentives run through your utility

No state program. Alabama Power offers up to $500 for a qualifying high-efficiency heat pump plus $75 for a paired smart thermostat. TVA local power companies in north Alabama and rural cooperatives run their own programs.

Program source: alabamapower.com

Utility programs in Alabama

These are the named utility and ratepayer rebates on file for Alabama. You claim the one that serves your address, not the total. Each card carries the program’s own terms: what equipment qualifies, who is eligible, what the cap actually is, and whether it stacks.

Alabama Power

alabamapower.com

$500

maximum

You claim it after installFlat amount

Up to $500 high-efficiency central heat pump; +$75 smart thermostat. Verify current amount.

Equipment that qualifies
High-efficiency central (air-source) heat pump; confirm SEER2 tier.
Who qualifies, and the cap
Alabama Power electric customers; one HP rebate per system. Verify current amount and window.
Stacking
Add-on: +$75 for a paired qualifying smart thermostat. Separate from any TVA-territory program (different service area).

TVA EnergyRight (North Alabama umbrella)

energyright.com

$800

maximum

You claim it after installFlat amount

TVA EnergyRight residential program across North Alabama's 16-county TVA footprint: up to $800 air-source heat pump or $800 ductless mini-split (geothermal $1,500 also available). Requires replacing existing electric heat; QCN installer required.

Equipment that qualifies
Air-source heat pump >=15 SEER2 (TVA Preferred tier higher); ductless mini-split >=17 SEER2. ENERGY STAR-class equipment.
Who qualifies, and the cap
Must replace an existing electric heating source (electric furnace, strip/resistance heat, or older heat pump); gas-to-electric conversion does NOT qualify. Installer must be a TVA EnergyRight Quality Contractor Network (QCN) member; contractor initiates the claim within 90 days of completion, homeowner completes the claim within 60 days. Program funded through 2027.
Stacking
Stacks with other TVA EnergyRight measures on the SAME project (heat pump water heater, duct sealing, insulation, air sealing) for roughly $2,100 combined; one heat-pump rebate per system, not combinable with a second HP rebate on the same unit. No federal 25C/25D (expired 12/31/2025) and no DOE HEAR/HOMES (ended 2026) to stack.

Huntsville Utilities

hsvutil.org

$800

maximum

You claim it after installFlat amount

TVA EnergyRight rebate delivered through this local power company: up to $800 air-source heat pump or $800 ductless mini-split (geothermal $1,500 also available). Requires replacing existing electric heat (no gas-to-electric); TVA Quality Contractor Network installer required. Confirm local participation. Largest North Alabama TVA distributor.

Equipment that qualifies
Air-source heat pump >=15 SEER2 (TVA Preferred tier higher); ductless mini-split >=17 SEER2. ENERGY STAR-class equipment.
Who qualifies, and the cap
Must replace an existing electric heating source (electric furnace, strip/resistance heat, or older heat pump); gas-to-electric conversion does NOT qualify. Installer must be a TVA EnergyRight Quality Contractor Network (QCN) member; contractor initiates the claim within 90 days of completion, homeowner completes the claim within 60 days. Program funded through 2027.
Stacking
Stacks with other TVA EnergyRight measures on the SAME project (heat pump water heater, duct sealing, insulation, air sealing) for roughly $2,100 combined; one heat-pump rebate per system, not combinable with a second HP rebate on the same unit. No federal 25C/25D (expired 12/31/2025) and no DOE HEAR/HOMES (ended 2026) to stack.

Decatur Utilities

energyright.com

$800

maximum

You claim it after installFlat amount

TVA EnergyRight rebate delivered through this local power company: up to $800 air-source heat pump or $800 ductless mini-split (geothermal $1,500 also available). Requires replacing existing electric heat (no gas-to-electric); TVA Quality Contractor Network installer required. Confirm local participation.

Equipment that qualifies
Air-source heat pump >=15 SEER2 (TVA Preferred tier higher); ductless mini-split >=17 SEER2. ENERGY STAR-class equipment.
Who qualifies, and the cap
Must replace an existing electric heating source (electric furnace, strip/resistance heat, or older heat pump); gas-to-electric conversion does NOT qualify. Installer must be a TVA EnergyRight Quality Contractor Network (QCN) member; contractor initiates the claim within 90 days of completion, homeowner completes the claim within 60 days. Program funded through 2027.
Stacking
Stacks with other TVA EnergyRight measures on the SAME project (heat pump water heater, duct sealing, insulation, air sealing) for roughly $2,100 combined; one heat-pump rebate per system, not combinable with a second HP rebate on the same unit. No federal 25C/25D (expired 12/31/2025) and no DOE HEAR/HOMES (ended 2026) to stack.

Florence Utilities

energyright.com

$800

maximum

You claim it after installFlat amount

TVA EnergyRight rebate delivered through this local power company: up to $800 air-source heat pump or $800 ductless mini-split (geothermal $1,500 also available). Requires replacing existing electric heat (no gas-to-electric); TVA Quality Contractor Network installer required. Confirm local participation.

Equipment that qualifies
Air-source heat pump >=15 SEER2 (TVA Preferred tier higher); ductless mini-split >=17 SEER2. ENERGY STAR-class equipment.
Who qualifies, and the cap
Must replace an existing electric heating source (electric furnace, strip/resistance heat, or older heat pump); gas-to-electric conversion does NOT qualify. Installer must be a TVA EnergyRight Quality Contractor Network (QCN) member; contractor initiates the claim within 90 days of completion, homeowner completes the claim within 60 days. Program funded through 2027.
Stacking
Stacks with other TVA EnergyRight measures on the SAME project (heat pump water heater, duct sealing, insulation, air sealing) for roughly $2,100 combined; one heat-pump rebate per system, not combinable with a second HP rebate on the same unit. No federal 25C/25D (expired 12/31/2025) and no DOE HEAR/HOMES (ended 2026) to stack.

Athens Utilities

energyright.com

$800

maximum

You claim it after installFlat amount

TVA EnergyRight rebate delivered through this local power company: up to $800 air-source heat pump or $800 ductless mini-split (geothermal $1,500 also available). Requires replacing existing electric heat (no gas-to-electric); TVA Quality Contractor Network installer required. Confirm local participation.

Equipment that qualifies
Air-source heat pump >=15 SEER2 (TVA Preferred tier higher); ductless mini-split >=17 SEER2. ENERGY STAR-class equipment.
Who qualifies, and the cap
Must replace an existing electric heating source (electric furnace, strip/resistance heat, or older heat pump); gas-to-electric conversion does NOT qualify. Installer must be a TVA EnergyRight Quality Contractor Network (QCN) member; contractor initiates the claim within 90 days of completion, homeowner completes the claim within 60 days. Program funded through 2027.
Stacking
Stacks with other TVA EnergyRight measures on the SAME project (heat pump water heater, duct sealing, insulation, air sealing) for roughly $2,100 combined; one heat-pump rebate per system, not combinable with a second HP rebate on the same unit. No federal 25C/25D (expired 12/31/2025) and no DOE HEAR/HOMES (ended 2026) to stack.

Joe Wheeler EMC

energyright.com

$800

maximum

You claim it after installFlat amount

TVA EnergyRight rebate delivered through this local power company: up to $800 air-source heat pump or $800 ductless mini-split (geothermal $1,500 also available). Requires replacing existing electric heat (no gas-to-electric); TVA Quality Contractor Network installer required. Confirm local participation.

Equipment that qualifies
Air-source heat pump >=15 SEER2 (TVA Preferred tier higher); ductless mini-split >=17 SEER2. ENERGY STAR-class equipment.
Who qualifies, and the cap
Must replace an existing electric heating source (electric furnace, strip/resistance heat, or older heat pump); gas-to-electric conversion does NOT qualify. Installer must be a TVA EnergyRight Quality Contractor Network (QCN) member; contractor initiates the claim within 90 days of completion, homeowner completes the claim within 60 days. Program funded through 2027.
Stacking
Stacks with other TVA EnergyRight measures on the SAME project (heat pump water heater, duct sealing, insulation, air sealing) for roughly $2,100 combined; one heat-pump rebate per system, not combinable with a second HP rebate on the same unit. No federal 25C/25D (expired 12/31/2025) and no DOE HEAR/HOMES (ended 2026) to stack.

Cullman Electric Cooperative

energyright.com

$800

maximum

You claim it after installFlat amount

TVA EnergyRight rebate delivered through this local power company: up to $800 air-source heat pump or $800 ductless mini-split (geothermal $1,500 also available). Requires replacing existing electric heat (no gas-to-electric); TVA Quality Contractor Network installer required. Confirm local participation.

Equipment that qualifies
Air-source heat pump >=15 SEER2 (TVA Preferred tier higher); ductless mini-split >=17 SEER2. ENERGY STAR-class equipment.
Who qualifies, and the cap
Must replace an existing electric heating source (electric furnace, strip/resistance heat, or older heat pump); gas-to-electric conversion does NOT qualify. Installer must be a TVA EnergyRight Quality Contractor Network (QCN) member; contractor initiates the claim within 90 days of completion, homeowner completes the claim within 60 days. Program funded through 2027.
Stacking
Stacks with other TVA EnergyRight measures on the SAME project (heat pump water heater, duct sealing, insulation, air sealing) for roughly $2,100 combined; one heat-pump rebate per system, not combinable with a second HP rebate on the same unit. No federal 25C/25D (expired 12/31/2025) and no DOE HEAR/HOMES (ended 2026) to stack.

Scottsboro Electric Power Board

energyright.com

$800

maximum

You claim it after installFlat amount

TVA EnergyRight rebate delivered through this local power company: up to $800 air-source heat pump or $800 ductless mini-split (geothermal $1,500 also available). Requires replacing existing electric heat (no gas-to-electric); TVA Quality Contractor Network installer required. Confirm local participation.

Equipment that qualifies
Air-source heat pump >=15 SEER2 (TVA Preferred tier higher); ductless mini-split >=17 SEER2. ENERGY STAR-class equipment.
Who qualifies, and the cap
Must replace an existing electric heating source (electric furnace, strip/resistance heat, or older heat pump); gas-to-electric conversion does NOT qualify. Installer must be a TVA EnergyRight Quality Contractor Network (QCN) member; contractor initiates the claim within 90 days of completion, homeowner completes the claim within 60 days. Program funded through 2027.
Stacking
Stacks with other TVA EnergyRight measures on the SAME project (heat pump water heater, duct sealing, insulation, air sealing) for roughly $2,100 combined; one heat-pump rebate per system, not combinable with a second HP rebate on the same unit. No federal 25C/25D (expired 12/31/2025) and no DOE HEAR/HOMES (ended 2026) to stack.

What your system should be sized for

A heat pump in Alabama should carry the house on the coldest design day, not the average one. These are the winter design temperatures our engine sizes against, in AHRI heating region III (2,800 heating degree days at the Birmingham reference metro).

CityDesign tempBasis
Birmingham21°Festimated
Mobile28°Festimated
Huntsville15°Festimated
Montgomery24°Festimated

Get notified when instant quoting opens in Alabama

One email when your market goes live, plus an alert if a program on this page changes. Nothing else.

  • Rebate amounts are estimates and subject to change. Verify current program terms and eligibility before quoting a final net price.
  • Eligibility varies by income, equipment efficiency, utility territory, and program funding availability.
  • State and utility programs only. Federal 25C/25D tax credits expired 12/31/2025 and the DOE HEAR/HOMES rebate programs ended 5/29/2026; neither is included.
  • After-install rebates are claimed by the homeowner after installation and are not guaranteed at the point of sale.