The Austin Energy Power Saver program is the city utility's residential rebate for high-efficiency heating and cooling upgrades. The heat-pump rebate runs through Home Performance with ENERGY STAR, a whole-home path rather than a single piece of equipment. Austin Energy pays the rebate after the work is verified, and the incentive is processed through a contractor enrolled in the Power Saver network. A home energy assessment, called a Home Energy Check, is part of the whole-home path and helps confirm the scope before work begins. The installed equipment must be ENERGY STAR qualified and meet the program's efficiency minimums.
The whole-home heat-pump rebate averages around $3,000 for a qualifying system, though the exact amount depends on the equipment and the home. To qualify, a heat pump generally needs to rate at least SEER2 16 for cooling and HSPF2 8.5 for heating, where HSPF2 is the Heating Seasonal Performance Factor that measures heating efficiency. Income-qualified households can receive a larger amount, and Austin Energy also offers low-interest financing on qualifying projects. Because the rebate is a single whole-home figure rather than a per-ton amount, it does not scale with system size the way San Antonio's tiered STEP rebate does. The thresholds sit above the federal Southwest-region minimum of SEER2 14.3.
The program follows the Austin Energy electric service area, which is centered on the City of Austin and includes parts of Travis and Williamson counties. Coverage does not extend to every suburb. Round Rock, for example, sits on Oncor and Pedernales Electric territory, so Austin Energy rebates do not apply there even though it is part of the metro. Confirm the meter's utility before quoting the rebate. Among the large Texas metros, Austin Energy's whole-home amount is the most generous single payment, while CPS Energy in San Antonio pays per ton and CenterPoint Energy in Houston pays up to $500 per unit. The federal Section 25C tax credit expired on December 31, 2025, so for 2026 the Power Saver rebate carries the cost offset on its own.
The program runs on an annual cycle and pays while program funds remain, so the amounts and qualifying equipment can change from year to year. Under current terms, the rebate application should be submitted within 90 days of the install date. The work must be done by a contractor registered with the Power Saver program, and that company must hold a Texas air-conditioning and refrigeration license from the Texas Department of Licensing and Regulation. The application relies on the matched system's AHRI Reference Number to confirm the certified efficiency rating. New split systems installed after January 1, 2026 use R-454B refrigerant under the federal AIM Act, and the qualifying equipment list reflects that transition.