Estimated Savings for a Typical Texas Home
2,000 sq ft home switching from electric-resistance heating
Installed Cost
$13,000
State Rebate
None
Net Cost
$13,000
Current Heating Cost/yr
$717
Heat Pump Cost/yr
$217
Annual Savings
$500
Payback Period
26 yrs
15-Year Savings
-$3,557
CO₂ Avoided/yr
3,541 lbs
Texas 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 $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 Texas. View full rebate detail →
Heat Pump Costs by City in Texas
| City | Annual Savings | Payback (yrs) | Population ↓ | Utility |
|---|---|---|---|---|
| Houston | $147 | 30 | 2,304,580 | Centerpoint Energy |
| San Antonio | $128 | 30 | 1,434,625 | CPS Energy |
| Dallas | $283 | 30 | 1,304,379 | Oncor |
| Austin | $117 | 30 | 961,855 | Austin Energy |
| Fort Worth | $236 | 30 | 935,508 | Oncor |
| El Paso | $317 | 30 | 678,815 | El Paso Electric |
| Arlington | $226 | 30 | 394,266 | Oncor |
| Corpus Christi | $128 | 30 | 326,586 | AEP Texas |
| Plano | $313 | 30 | 288,061 | Oncor |
| Laredo | $197 | 30 | 260,654 | AEP Texas |
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Quick Facts: Texas
- 🌡️ Climate: Mild (1,700 HDD)
- ⚡ Avg electricity: $0.120/kWh
- 🔥 Natural gas: $1.00/therm
- 🏭 Top utility: Oncor