The TEP Efficient Home Program is Tucson Electric Power's residential efficiency program, and it pays up to $720 toward a high-efficiency air-source heat pump. The incentive is delivered through a participating contractor rather than as a homeowner mail-in rebate, so it is typically reflected in the contractor's pricing once the qualifying equipment and install are confirmed.
What sets the program apart is its emphasis on a quality installation, not just qualifying equipment. The best heat pump underperforms if it is oversized, undercharged, or starved for airflow, so TEP's participating contractors follow program guidelines covering correct sizing (via a Manual J load calculation), refrigerant charge, and duct airflow. TEP also offers a free virtual home energy assessment that can surface other qualifying measures — insulation, air sealing, smart thermostats — that improve how the new heat pump performs.
Eligibility follows the TEP electric meter across Tucson and Pima County. TEP's sister utility, UniSource Energy Services (UES), runs a similar Efficient Home Program for its Mohave and Santa Cruz county customers, with its own (lower) heat-pump incentive — so a buyer outside Tucson should check which utility appears on the electric bill. Note that APS, the other large Arizona utility, discontinued its residential efficiency rebates on January 1, 2026, so utility support now varies sharply by territory.
For 2026, the TEP rebate stacks with the income-qualified Efficiency Arizona (HEAR) rebate where the household qualifies, and with any manufacturer or contractor promotion. The federal Section 25C tax credit that added up to $2,000 for a heat pump ended for equipment placed in service after December 31, 2025, so the utility and state rebates are the incentives that remain. Confirm the current rebate amount and a participating contractor on tep.com before relying on it.