Alabama

Heat pump incentives in Alabama

Alabama Power gas-furnace-to-heat-pump rebate

verified 2026-10-26

up to $1,000

Alabama's home energy rebate program is not open as of 2026-10-07 (https://adeca.alabama.gov/ira-rebates/). Check your state energy office for current rebates. No state program. Alabama Power pays up to $1,000 for a gas-to-electric heat pump (20/18 SEER2+), through 2026-12-01. The thermostat rebate is a separate $200. 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

$1,000

maximum

You claim it after installFlat amount

Up to $1,000 for a gas-to-electric heat pump, 20/18 SEER2+, through 2026-12-01. Thermostat rebate is a separate $200.

Equipment that qualifies
Gas-to-electric heat pump, 20 SEER2 / 18 SEER2 or higher.
Who qualifies, and the cap
Alabama Power electric customers; one HP rebate per system. Gas-to-electric, 20/18 SEER2+, through 2026-12-01.
Stacking
Thermostat rebate is a separate $200. 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); one heat-pump rebate per system, not combinable with a second HP rebate on the same unit. Check your state energy office for current rebates.

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); one heat-pump rebate per system, not combinable with a second HP rebate on the same unit. Check your state energy office for current rebates.

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); one heat-pump rebate per system, not combinable with a second HP rebate on the same unit. Check your state energy office for current rebates.

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); one heat-pump rebate per system, not combinable with a second HP rebate on the same unit. Check your state energy office for current rebates.

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); one heat-pump rebate per system, not combinable with a second HP rebate on the same unit. Check your state energy office for current rebates.

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); one heat-pump rebate per system, not combinable with a second HP rebate on the same unit. Check your state energy office for current rebates.

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); one heat-pump rebate per system, not combinable with a second HP rebate on the same unit. Check your state energy office for current rebates.

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); one heat-pump rebate per system, not combinable with a second HP rebate on the same unit. Check your state energy office for current rebates.

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.
  • Eligibility varies by income, equipment efficiency, utility territory, and program funding availability.
  • The federal HEAR rebate was renamed High-Efficiency Electric Home Rebates on May 29, 2026, and its rules were changed (https://www.energy.gov/documents/program-notice-26-2, fetched 2026-10-14). States run it, and many have not opened. Check your state energy office for current rebates.
  • After-install rebates are claimed by the homeowner after installation and are not guaranteed at the point of sale.