Air Conditioning

Save energy and money with an energy-efficient air conditioner or heat pump. Austin Energy offers a rebate averaging $350 when a participating contractor installs a qualifying system in your home.   

Additional Rebates Available When You Upgrade to Home Energy Savings

Maximize your investment in a new air conditioner and earn additional rebates when you participate in Home Energy Savings, a whole-home approach to energy efficiency.

If you proceed with air conditioner-only rebates, you can still qualify for other rebates and financing options through Home Energy Savings. If you choose to participate in Home Energy Savings within six months after receiving your air conditioner rebate, you could be eligible for an additional $200 rebate.

Learn more about the benefits Home Energy Savings.

Other Energy Efficiency Incentives

Austin Energy also offers rebates for the following equipment that can improve energy efficiency in your home: 

• Window Air Conditioners
• Heat Pump Water Heaters
• Pool Pumps
• Power Partner Thermostats
• Solar Screens

Rebate amounts vary based on the type of equipment you install.

^*Seasonal Energy Efficiency Ratio 2 (SEER2) measures average energy efficiency over a cooling season.

^**Energy Efficiency Ratio 2 (EER2) measures an air conditioner's energy efficiency at high outdoor temperatures and persistent use.

^***Heating Seasonal Performance Factor 2 (HSPF2) measures the efficiency of a heat pump over the fall and winter seasons.

^****Non-ducted heat pumps/heat pump mini-splits must have an HSPF2 of 9 or higher to qualify for the Tier 2 rebates.

Prerequisites

• You must receive electricity from Austin Energy.
• You must use an Austin Energy participating contractor.
• All existing systems being replaced must be 10 years old or older.
• Rebates are available only for the replacement of existing equipment.
• New equipment is not eligible for rebates if the existing equipment received rebates within the last 10 years.
• Your home must be 10 years old or older.
• Your participating contractor must submit your rebate application within 90 days of installation. Applications submitted after this time-frame will not be approved.

Participating contractors must comply with all program requirements and conduct business in an honest, professional, and ethical manner. All participating contractors must abide by the Austin Energy Code of Conduct and Ethical Requirements (pdf)​.

Requirements

• All installations must reduce peak demand for electricity.
• All required City of Austin permits must be in place. Refer to Permitting Requirement for Property Owners and Occupants (pdf) for details.
• All work must meet manufacturers’ standards and local, state, and national codes.
• Your new air conditioner must meet the efficiency guidelines in the rebate tables.
• All components of the system (condenser, furnace/air handler, and evaporative coil) must be replaced to qualify for rebates.
• Your installer must size equipment to an approved ACCA Manual J methodology or Austin Energy's Air Conditioning Sizing Guidance (pdf).
• You must attach proof that your equipment meets the sizing requirement (Manual J or Austin Energy's Air Conditioning Sizing Guidance (pdf).
• You must agree to a post-installation inspection by Austin Energy.

Exclusions

• Air conditioning systems with electric resistance heating elements do not qualify.

Rebate Recipient Eligibility Requirements

• Property owners or electric account holders that purchased and installed the equipment are eligible to receive the rebates.
• By default, the rebate payment is directed to the customer listed on the Austin Energy electric account. The rebate may also be directed to one of the below parties if all requirements are met.
  • The property owner, verified using county tax records.
  • A tenant at the property, when the property owner submits a signed Letter of Authorization to issue the rebate to the tenant.
  • A property manager, when the property owner submits a signed Letter of Authorization to issue the rebate to the property manager.
  • If you need a Letter of Authorization, please email the Austin Energy Appliance Efficiency Program.
• Participating contractors are not eligible to receive the air conditioner rebates.

The participating contractor will apply for your rebate on your behalf through Austin Energy’s online rebate processing system. Your participating contractor will need the following information for your rebate application:

Air Conditioner

• Active Austin Energy Customer Account Number
• Tax Assessor Property ID
• AHRI Reference Number and AHRI Certificate of Certified Product Performance
• Square footage of conditioned space for new unit(s)
• Old unit age (must be 10 years old or older to qualify)
• Old unit tons
• Total number of air conditioner units at the address
• New system type (split, split-inverter, or mini-split)
• New unit condensing serial number
• New condensing tier
• Invoice that must include:
  • Unit model numbers
  • Unit serial numbers
  • Installation date
  • Rebate recipient/applicant contact information (name, address, email address and/or phone number)
  • Installation address 
• Letter of Authorization (if applicable – see the Eligibility tab)

Heat Pump

• Active Austin Energy Customer Account Number
• Tax Assessor Property ID
• AHRI Reference Number and AHRI Certificate of Certified Product Performance
• Square footage of conditioned space for new unit(s)
• Old unit age (must be 10 years or older)
• Old unit tons
• Existing heat type (gas, electric strip, heat pump)
• Total number of air conditioner units at the address
• New system type (split, split-inverter, or mini-split)
• New unit condensing serial number
• Invoice that must include:
  • Unit model numbers
  • Unit serial numbers
  • Installation date
  • Rebate recipient/applicant contact information (name, address, email address and/or phone number)
  • Installation address 
• Letter of Authorization (if applicable – see Eligibility for details)