Austin Energy Rebate Program

Definition

Austin Energy — the City of Austin's municipal electric utility — operates the longest-running residential energy efficiency rebate program in Texas. The program covers high-efficiency AC and heat pump replacements, ductwork sealing and replacement, attic insulation, and (separately) solar PV.

HVAC rebate eligibility generally requires:

• The home is served by Austin Energy (check your electric bill — Pedernales Electric or other co-ops are NOT eligible)
• New equipment meets a minimum efficiency tier — typically SEER2 15.2 / HSPF2 8.1 for the entry tier, higher tiers for larger rebates
• The installation is matched and AHRI-certified (the indoor coil and outdoor condenser are listed as a verified pair)
• The installing contractor is a participating Austin Energy rebate contractor
• The application is submitted within 90 days of installation

Rebate amounts and tier requirements change each fiscal year. Cheap Cold Air verifies current eligibility and submits the rebate paperwork on your behalf as part of qualifying installs — you don't have to chase the paperwork.

Why it matters in Austin

A typical Austin Energy AC or heat pump rebate runs $300-$1,000+ depending on tier and equipment. Stacked with the federal IRA HEAR program (Inflation Reduction Act electrification rebates) and the Inflation Reduction Act 25C tax credit, the total stack can meaningfully change the net cost of a high-efficiency install — sometimes enough to flip the decision from "replace with a standard-efficiency unit" to "replace with a high-efficiency variable-speed inverter unit."

The program has a fixed annual budget. When the budget runs out for the year, rebates pause until the next fiscal year. Earlier in the year is better timing for big projects.