Maximize Your Savings: Bexar County Heat Pump Installation Incentives and Rebates for 2024

Homeowners in Bexar County, Texas, are in an excellent position to save thousands of dollars on energy-efficient heat pump installations thanks to a combination of federal tax credits, local utility rebates, and upcoming state programs. With Texas already one of America’s biggest markets for heat pumps, with about 2 million households in the Lone Star State relying on the electric, super-efficient technology as of 2020, now is the perfect time to explore these financial incentives.

Federal Tax Credits: Immediate Savings Available

The most accessible incentive for Bexar County residents comes from the federal government. Any household can claim a $2,000 federal tax credit (or 30% of the price, whichever is less) against the cost to install an air-source heat pump that meets modest efficiency requirements. This credit applies to heat pumps that meet or exceed the CEE highest efficiency tier, not including any advanced tier, in effect at the beginning of the year when the property is installed.

What makes this particularly attractive is that you can claim the full value of the 25C every year that you install a new qualified heat pump. For example, you could install a supplemental mini-split for a bonus room in 2024 and claim up to $2,000, then switch your home’s main heating and cooling system to a heat pump in 2025 and claim up to $2,000 again.

CPS Energy Rebates: Local Utility Savings

For San Antonio residents served by CPS Energy, additional savings are available through the utility’s rebate programs. CPS Energy offers generous heat pump and air conditioner rebates for new energy efficient equipment. The utility provides rebates for heat pumps based on a per ton basis, with rebates from $100-$275 per ton.

These rebates are part of CPS Energy’s Sustainable Tomorrow Energy Plan (STEP), which has been helping San Antonio residents save money and energy for over a decade. CPS Energy gave back $45.5 million in rebates to customers last year under STEP, with the average customer who participates in a rebate program saving about $400 a year.

Upcoming State and Federal Rebate Programs

Even more substantial savings are on the horizon. Income-dependent rebates of up to $8,000 are coming…eventually. The Texas State Energy Conservation Office (SECO) hasn’t yet announced when they’ll be available. As of late February 2024, Texas has yet to file an application for the funding.

When these programs become available, the savings will be significant. Low-income households can claim 100% of the heat pump installation costs up to $14,000. Moderate-income households can claim 50% of the heat pump installation cost up to $14,000. SECO intends to begin accepting rebate claims by the end of 2024 and no later than the start of 2025. SECO will require preapproval through an application.

Stacking Incentives for Maximum Savings

One of the best aspects of these programs is that you are allowed (and even encouraged) to stack or combine federal and utility incentives, for even bigger savings. This means Bexar County homeowners could potentially combine the $2,000 federal tax credit with CPS Energy rebates and future state programs for substantial overall savings.

Additionally, heat pumps work best in a well-insulated, air-sealed home, and you can claim an additional $1,200 tax credit toward those upgrades (up to 30% of the cost). You also might need to upgrade your electrical panel to 200 amps of service to accommodate a heat pump, which is eligible for another $600 / 30% tax credit.

Choosing the Right Contractor

When considering heat pump installation bexar county residents should work with experienced, licensed contractors who understand both the technology and available incentives. Texas Air Repair, a locally-owned and operated air conditioning and heating company that provides residential and commercial HVAC services in San Antonio, Houston, Austin and the surrounding areas, has been serving the community with over 30 years of experience providing heating and cooling solutions, keeping families and businesses comfortable all year long.

The company’s commitment to customer satisfaction and expertise in heat pump technology makes them well-positioned to help homeowners navigate both the installation process and available incentive programs. Committed to 100% satisfaction, they make sure every detail meets your highest expectations. Their dedication to excellence guarantees a service experience that leaves you completely happy and confident.

Why Heat Pumps Make Sense for Bexar County

Heat pumps are particularly well-suited for the Texas climate, providing both heating and cooling in a single, energy-efficient system. Because they transfer heat from one location to another instead of creating heat, heat pumps are very energy efficient, costing you much less in energy than conventional HVAC systems that burn fossil fuels to generate heat. Energy efficiency, which saves you money year-round, is just one of the multiple benefits a heat pump offers.

Taking Action

With most Texans qualifying for at least a couple thousand dollars in rebates, discounts, or tax credits, there has never been a better time to consider heat pump installation in Bexar County. The combination of federal tax credits, local utility rebates, and upcoming state programs creates an unprecedented opportunity for homeowners to upgrade to efficient, money-saving heating and cooling technology.

To maximize your savings, start by researching current federal tax credits and CPS Energy rebates, then consult with qualified local contractors who can help you navigate the process and ensure proper installation. With the right approach, you could save thousands of dollars while significantly reducing your home’s energy consumption and environmental impact.