The TEP Efficient Home Program is the clearest mini-split rebate among Arizona utilities, because it names ductless equipment directly: a mini-split heat pump or air conditioner earns up to $100 per ton. On a 2-ton head that is about $200; on a 3-ton system, about $300. The program is administered for TEP by Franklin Energy and runs on an instant-rebate model — the discount is deducted from your final invoice by a participating contractor rather than mailed back as a check.
To qualify, the mini-split must meet at least SEER2 15.2 for cooling and HSPF2 7.8 for heating — both above the federal heat-pump minimums (14.3 SEER2 / 7.5 HSPF2), and easily met by a good inverter ductless system. The program also pays the installing contractor a $50 stipend per mini-split replacement project, which keeps participating contractors engaged with the ductless category. For mini-split installs, TEP waives the MeasureQuick performance verification it applies to some central equipment.
Because the rebate is delivered through enrolled contractors, the practical first step is choosing an Efficient Home participating contractor rather than applying yourself — a homeowner can't claim this rebate after the fact through a non-participating installer. TEP offers a free home energy assessment that can confirm eligibility and point you to participating contractors. Unlike SRP Cool Cash, the Efficient Home rebate doesn't publish a hard April install deadline; it's funded on a program-year basis, so the real risk is funding running out rather than a calendar cutoff. Confirm current availability and the per-ton amount on tep.com before counting it into a quote.