CPS Energy STEP is the San Antonio utility's residential rebate for upgrading to a high-efficiency air conditioner or heat pump. STEP stands for the Save for Tomorrow Energy Plan, the efficiency fund that pays the rebate, and homeowners apply through the utility's SaveNow portal. CPS Energy pays the rebate after it verifies the completed install, typically as a check or bill credit rather than an instant discount. A registered contractor usually files the application, though the homeowner can submit it with the install paperwork. The new equipment must meet the program's minimum efficiency rating before any tier applies.
The rebate is tiered by the system's SEER2 rating and paid per ton of cooling capacity. Equipment rated SEER2 15 to 15.9 earns $100 per ton, SEER2 16 to 17.9 earns $175 per ton, and SEER2 18 or higher earns $275 per ton. On a typical 3-ton install at the top tier, that works out to about $825. A larger 5-ton system at the same tier reaches roughly $1,375. Because the rate scales with efficiency, the jump from the middle tier to the top tier is worth an extra $100 per ton. Every tier sits well above the federal Southwest-region minimum of SEER2 14.3 for split systems under 45,000 BTU per hour, so a code-minimum unit will not qualify.
CPS Energy is a municipally owned utility, and the rebate follows its electric service area. That area covers San Antonio and most of Bexar County, plus small portions of several adjacent counties. The per-ton structure is distinct from the other large Texas metros. Austin Energy pays a single whole-home amount of around $3,000 for a qualifying heat pump rather than a per-ton figure. In the Houston area, CenterPoint Energy pays up to $500 per unit and adds a free tune-up. The STEP rebate carries more of the cost offset than it used to, because the federal Section 25C tax credit expired on December 31, 2025 and is not available in 2026. Utility rebates like STEP are now the main remaining incentive for a high-efficiency upgrade in San Antonio.
The 2026 STEP cycle runs from February 2026 through January 2027, and CPS Energy publishes the qualifying equipment list and amounts for each cycle. Under the 2026 terms, the application should be submitted within 30 days of the install date. The installing company must hold a Texas air-conditioning and refrigeration contractor license issued by the Texas Department of Licensing and Regulation, either Class A or Class B for residential work. The application requires the matched system's AHRI Reference Number, the certified rating for the paired outdoor unit, indoor unit, and coil, so the contractor should provide it. New split systems installed after January 1, 2026 use R-454B refrigerant under the federal AIM Act, and CPS Energy's equipment list reflects that change.