Heat Pump Rebates & Panel Requirements in Arizona
Up to $8,850 in confirmed Arizona heat pump rebates from state and utility programs in 2026. See the full breakdown — then check whether your panel has the capacity to support the installation.
IRA 25C expired Dec 31, 2025. The federal tax credit is not available for heat pump systems installed in 2026. State and utility programs below are your primary incentives.
Serving Phoenix, Tucson, Mesa, Scottsdale, Chandler and all of Arizona
Available rebates in Arizona
Last verified: March 2026ESTIMATE ONLY — verify amounts and eligibility with program administrators before purchasing.
Federal — All States
EXPIREDIRA 25C Tax Credit
$0
Expired December 31, 2025. Not available for 2026 installations.
Installed before Dec 31, 2025? You can still claim it on your 2025 tax return (IRS Form 5695).
Geothermal only: Section 25D still active — 30%, no cap, through 2032.
HEEHRA — Arizona
LiveHeat Pump Rebate
$8,000
Point-of-sale — no tax liability required
First-come-first-served until funds depleted
State / Utility
Arizona Programs
APS Cool Home Package
$600Arizona Public Service (APS)
SRP Energy Efficiency Rebates
$500Salt River Project (SRP)
Confirmed maximum rebates — Arizona
HEEHRA $8,000 + state programs (IRA 25C expired Dec 2025)
Low income (<80% AMI, where applicable)
up to $8,850
ESTIMATE ONLY. Not all programs are stackable. Income verification required for HEEHRA. IRA 25C tax credit expired Dec 31, 2025 — not included in this estimate. Verify with your state energy office and program administrators before purchasing.
Arizona rebate program comparison
Last verified: March 2026Always confirm current amounts at each program's official source before purchasing.
| Program | Administrator | Heat Pump | Water Heater | Type |
|---|---|---|---|---|
IRA 25C Tax Credit EXPIRED December 31, 2025 Not available for 2026 installations | IRS (all states) | $0 | $0 | Expired |
HEEHRA Income-qualified (≤ 150% AMI) — state-administered | Arizona State Energy Office | Up to $8,000 | Up to $1,750 | Rebate (Live) |
| APS Cool Home Package APS residential customers. Qualifying HVAC equipment, SEER2 ≥ 15. Must be instal… | Arizona Public Service (APS) | $600 | $250 | Rebate |
| SRP Energy Efficiency Rebates SRP residential customers in Metro Phoenix and East Valley. ENERGY STAR HVAC. | Salt River Project (SRP) | $500 | $200 | Rebate |
Amounts are per-project maximums unless noted. HEEHRA and state programs may stack where both are active. Program data last verified: 2026-03-25.
Incentive data verified March 2026. Programs change frequently — amounts, eligibility, and availability can change without notice. Confirm current eligibility with your state energy office before purchasing any equipment.
Arizona climate & heat pump sizing
Arizona falls in IECC 2021 Zone 2B — Hot-Dry. Cooling is the dominant load. A standard ASHP provides year-round comfort without cold-climate specifications.
Typical installed cost in Arizona: $4,000–$11,000 for a whole-home air-source system (2026). Ductwork, electrical, and panel upgrades add cost.
Before any installation, an NEC 220.82 panel capacity check confirms whether your existing electrical service has headroom — potentially saving $5,000–$10,000 in unnecessary upgrades.
Arizona quick facts
Frequently asked questions — Arizona
What heat pump rebates are available in Arizona in 2026?
In Arizona in 2026, the main incentives are state and utility programs, plus HEEHRA federal rebates (Arizona's program is currently active): up to $8,000 for low-income households (< 80% AMI) or $4,000 for moderate-income (80–150% AMI). Active state/utility programs include: APS Cool Home Package (Arizona Public Service (APS)). Note: the IRA 25C tax credit expired December 31, 2025 and is not available for 2026 installations.
Do I need a panel upgrade for a heat pump in Arizona?
Not necessarily. Most 200A panels in Arizona have headroom for a heat pump under the NEC 220.82 Optional Method, which accounts for load diversity rather than simultaneous peak demand. A 100A panel is more likely to require an upgrade — especially if you also plan to add an EV charger or electric range. Our free 3-minute audit calculates your exact available capacity using the same method your electrician would use.
How much does a heat pump cost in Arizona?
In Arizona, a whole-home air-source heat pump typically costs $4,000–$11,000 installed (2026 estimates). That range includes equipment and labor; ductwork modifications, electrical work, or panel upgrades add cost. IECC Zone 2B means a standard ASHP handles the heating season without cold-climate specifications, keeping installed cost lower. Combined rebates can offset a portion of the total — verify program availability before purchasing.
Is the IRA 25C tax credit still available in Arizona?
No. The IRA Section 25C non-refundable tax credit expired December 31, 2025. It is not available for heat pump systems installed in 2026. If your system was installed before December 31, 2025, you can still claim it on your 2025 federal tax return (IRS Form 5695). For 2026 installations, the remaining federal incentive is HEEHRA (where your state has an active, funded program). Geothermal heat pumps may still qualify for the Section 25D credit (30%, no cap, through 2032).
What climate zone is Arizona in, and how does it affect heat pump selection?
Arizona is classified as IECC 2021 Zone 2B — Hot-Dry. This is a hot climate — cooling is the dominant load. Heat pumps replace both your air conditioner and furnace in a single efficient system. Cold-climate specifications are not required.
Related Resources
Panel Capacity Guide
Can your electrical panel handle a heat pump?
Savings Calculator
Estimate annual savings for Arizona
Thermostat Guide
Aux heat vs emergency heat settings
Contractor Directory
Find verified installers in Arizona
Compare Brands
Specs, dealer networks, and cold climate ratings
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Ready to claim your Arizona rebates?
Every rebate program requires a qualifying installation. Before you schedule a contractor, confirm your electrical panel has capacity for a heat pump — free, in 3 minutes.
Up to $8,850 in confirmed Arizona rebates from state and utility programs.
Incentive data verified March 2026. Programs change frequently. Confirm eligibility with your state energy office before purchasing. ESTIMATE ONLY. Final installation results and rebate eligibility must be verified with a licensed contractor and program administrator.