Estimated Savings for a Typical Arizona Home
2,000 sq ft home switching from electric-resistance heating
Installed Cost
$13,000
State Rebate
-$500
Net Cost
$12,500
Current Heating Cost/yr
$810
Heat Pump Cost/yr
$245
Annual Savings
$565
Payback Period
22.1 yrs
15-Year Savings
-$1,835
CO₂ Avoided/yr
3,749 lbs
Arizona Heat Pump Rebates
✕
Federal 25C Tax Credit (Expired Dec 31, 2025)
The federal Energy Efficient Home Improvement Credit (up to $2,000 for heat pumps) ended December 31, 2025. Heat pumps installed in 2026 do not qualify for it.
Up to $500
Arizona State/Utility Rebate
Arizona utilities (APS, SRP) offer heat-pump rebates of roughly $500.
Up to $8,000
HEEHRA Federal Rebate (Income-Qualified)
Households at or below 150% of area median income can receive up to $8,000 toward a heat pump through the federal HEEHRA program, administered by Arizona. View full rebate detail →
Heat Pump Costs by City in Arizona
| City | Annual Savings | Payback (yrs) | Population ↓ | Utility |
|---|---|---|---|---|
| Phoenix | $411 | 30 | 1,608,139 | Arizona Public Service |
| Tucson | $315 | 30 | 542,629 | Tucson Electric Power |
| Mesa | $258 | 30 | 504,258 | Arizona Public Service |
| Chandler | $294 | 30 | 275,987 | Arizona Public Service |
| Gilbert | $373 | 30 | 267,918 | Arizona Public Service |
| Scottsdale | $322 | 30 | 258,069 | Arizona Public Service |
| Glendale | $345 | 30 | 248,325 | Arizona Public Service |
| Tempe | $252 | 30 | 195,805 | Arizona Public Service |
| Peoria | $325 | 30 | 190,985 | Arizona Public Service |
| Surprise | $495 | 25.2 | 144,416 | Arizona Public Service |
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Quick Facts: Arizona
- 🌡️ Climate: Mild (1,800 HDD)
- ⚡ Avg electricity: $0.128/kWh
- 🔥 Natural gas: $1.40/therm
- 🏭 Top utility: Arizona Public Service