If you previously looked into Arizona’s home energy rebates and were told your HVAC system did not qualify, it may be worth taking another look. In September 2026, Arizona program administrators announced revised Efficiency Arizona guidelines that expand access to HVAC rebates of up to $8,000.
The updated guidelines allow homeowners with existing heat pumps to qualify, while homeowners with gas heat can participate without converting their homes to an all-electric heating system. If you want to keep your gas heat, you may be able to replace only the air-conditioning portion with a qualifying heat pump while keeping your existing gas furnace.
Todd Russo, owner of Rosie Certified Partner REEIS Air, Plumbing and Electrical, shared his insights into the program.
Why previously ineligible homeowners should take another look
An estimated 65 to 70 percent of homes in the Phoenix metropolitan area have heat pumps or all-electric HVAC systems. Under the earlier guidelines, existing heat pump systems were excluded from the heat pump replacement rebate, leaving many local homeowners unable to access the incentive.
“The September 9 announcement changes that. Homeowners with an existing heat pump can now qualify to replace it with a more efficient model. Homeowners who previously declined the program because they wanted to preserve their gas heating also have a reason to reconsider,” Russo said. “An eligible heat pump can serve their cooling needs while the gas furnace stays in place.”
The change makes the program relevant to a broader range of gas-heated and all-electric homes. However, an updated guideline does not automatically make every project eligible. Household income, equipment requirements, and project approval still matter.
If your home was previously ruled ineligible because of its existing heating system, it may be worth asking whether the updated requirements change that determination.
You can keep your gas heat
For homeowners who prefer gas heating, one of the most significant changes is that participation does not require removing the existing gas furnace. An eligible project can replace the AC portion of the system with a qualifying heat pump while retaining the gas furnace.
The current program does not provide a rebate for removing or replacing the gas heating source. The up-to-$8,000 HVAC rebate applies to the qualifying heat pump installation.
The important distinction is that a heat pump can provide both heating and cooling. Still, in a setup that retains a gas furnace, the two systems can work together rather than requiring the homeowner to eliminate gas heat. The appropriate configuration depends on the home’s existing equipment and the program’s equipment requirements.
Combining HEAR rebates with utility incentives
The Home Electrification and Appliance Rebates program, known as HEAR, offers eligible households up to $14,000 in total rebates for qualifying improvements. The up-to-$8,000 heat pump rebate is part of that household total.
Other eligible improvements can include insulation, air sealing and ventilation, qualifying appliances, and necessary electrical panel or wiring upgrades associated with an eligible appliance.
For qualifying comprehensive projects, combined HEAR and utility incentives may provide additional savings. For example, a household approved for the full $14,000 HEAR amount and approximately $1,000 in eligible utility rebates could receive about $15,000 in combined incentives.
The actual amount depends on the household, utility provider, equipment, and improvements included in the project. SRP, for example, offers incentives for qualifying air-conditioning and heat pump systems, plus separate rebates for certain insulation and duct repairs.
Each program has its own eligibility requirements, and combined rebates cannot exceed the project cost. In other words, $15,000 is an example of what a qualifying package could potentially receive, not a guaranteed amount for every HVAC replacement.
How to qualify and get started
HEAR eligibility is based on household income and size, as well as where you live. Households below 80 percent of Area Median Income may receive up to 100 percent of eligible costs, subject to individual rebate limits. Households between 80 and 150 percent of Area Median Income may receive up to 50 percent, also subject to those limits.
“Although there is an income qualification, the limits are quite high and over 75 percent of Arizona homeowners will qualify,” Russo said.
Homeowners should also know the project must be approved before installation and completed through an Efficiency Arizona Qualified Contractor. That makes it important to understand the program requirements before purchasing equipment or beginning work.
For homeowners who were previously told their heat pump did not qualify, or who decided against participating because they wanted to keep their gas heat, the September 2026 changes are worth understanding. The updated guidelines do not guarantee eligibility, but they may open the door to rebate options that were not available under the previous rules.
As with any home improvement incentive, homeowners should verify current eligibility requirements, available funds, and rebate amounts before beginning a project.
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CONTENT PARTNER | Reeis Air Conditioning, Plumbing, Electrical & Heating
Reeis is a home performance contracting company. We like to say “Reeis Home Performance is better than just air conditioning.” That’s because we deliver guaranteed results by analyzing and improving more than just the A/C. Reeis carries multiple contractor’s licenses, certifications and affiliations. We have a sincere commitment to training our certified staff in a variety of disciplines such as: heating and air conditioning, insulation techniques, solar heat gain, air flow, pressure balancing and more.
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