HVAC Rebates

Is it time to replace your heating, ventilation and air conditioning (HVAC) system? Of all the systems in your home, this equipment can be your biggest power user, but we can help you save money and energy when you install a new energy-efficient HVAC system in your home.

Program Funding Update
The rebate program is temporarily closed and no longer accepting applications for residential rebates until further notice. Please check back for updates.

Requirements & Criteria

HVAC rebate applications are honored on a first-come, first-served basis while funds last. Installations completed within a given program year will only be eligible for that funded program year and cannot qualify for the preceding or subsequent year.

Please note that PEC’s Residential HVAC Rebate Program is subject to change without prior notice and is only available while funds last.

Program Overview

We offer rebate incentives to residential members for the installation of replacement HVAC systems in existing single-family homes. To qualify, you must meet all program eligibility criteria and satisfy all installation requirements.

Measuring System Efficiency

The two standard measures most commonly used to rate the efficiency of HVAC systems are Seasonal Energy Efficiency Ratio (SEER) and Energy Efficiency Ratio (EER). The higher the SEER or EER rating, the more efficient the system. In addition, heat pump systems have a measure of efficiency called Heating Seasonal Performance Factor (HSPF) and ground source heat pump systems have a measure of efficiency called Coefficient of Performance (COP).

The Air-Conditioning, Heating & Refrigeration Institute (AHRI) rates all HVAC systems to accurately determine the SEER, EER, HSPF and COP, and assigns each rated system a reference number. All newly installed HVAC systems must have a valid AHRI reference number in order to qualify for incentives through this program. Use the online AHRI Product Directory to look up your HVAC system’s efficiency ratings.

Eligibility Criteria

To qualify for our HVAC rebate program, you must meet all of the following eligibility criteria:

  1. The residence must be an existing single-family home. (New-construction homes are not eligible.)
  2. The residence must be located within PEC’s service territory and receive electricity from PEC.
  3. You must be a residential member or a landlord.
  4. You must complete and submit an HVAC Rebate Application to be received within 60 days of the installation.
  5. Your installation must be done within the same year in which you apply for the rebate (for example, an installation completed in 2018 is not eligible for the 2019 rebate program).

Installation Requirements

  1. Installation must be performed by a licensed HVAC contractor with a valid Texas Air Conditioning License.
  2. For each HVAC system replacement, the indoor and outdoor units must be replaced on the same date.
  3. The combination of indoor and outdoor units must have a valid AHRI reference number, which can be provided by your HVAC contractor.
  4. The new HVAC system’s AHRI rated efficiency values must satisfy the following:
    • SEER greater than or equal to 16.0.
    • EER greater than or equal to 12.5.
    • HSPF greater than or equal to 8.2 (heat pumps only).
  5. The new HVAC system’s capacity must not exceed 65,000 BTU/hour (5.4 tons).
  6. The new HVAC system(s) must be properly sized to the dwelling, according to ASHRAE or ACCA Manual J standards.

Additional Requirements

  1. Ground Source Heat Pumps (GSHP) must:
    • Replace an existing heat pump.
    • Be between 1.5 and 6 tons installed.
    • Have a COP greater than or equal to 3.1.
    • Have an EER greater than or equal to 17.
    • NOTE: Please contact our Energy Services Department before submitting a rebate application for a GSHP installation.
  2. Window A/C units are not eligible for incentives.
  3. A/C with electric furnaces are not eligible for incentives.

Please note that the HVAC contractor is responsible for obtaining proper permits for equipment installation and ensuring that all municipal and county code requirements are satisfied.

Process & Required Documents

Step 1: Licensed HVAC contractor installs eligible HVAC system(s).

Select any licensed HVAC contractor to perform the system installation. Be sure to discuss the rebate program and installation requirements with your contractor before beginning the installation.

Step 2: You or your HVAC contractor completes a rebate application through our online portal.

To have your application submitted by your HVAC contractor, complete a Member Authorization Form. Your contractor will be required to submit this form as specified in the participation process.

Step 3: You or your HVAC contractor submits the rebate application and additional required documents, including:

  • A copy of an AHRI certificate (provided by your contractor) for each HVAC system that was installed.
  • A copy of the installation invoice (provided by your contractor).
  • A Member Authorization Form (if the application is submitted by your contractor).

For assistance, please contact us at 888-554-4732, Monday through Friday, 8 a.m. to 6 p.m.

Step 4: PEC reviews rebate application

Please note that rebate applications must be received within 60 days of installation and will not be processed without all required documents. We may choose to conduct a verification inspection to ensure the HVAC system information was provided accurately.

Step 5: PEC issues bill credit

If the rebate application is approved, we will issue a bill credit to you within three to six weeks. If the house is being rented and the landlord has a PEC landlord account, then we will issue a rebate check to the landlord.

2020 Residential HVAC Rebate Program

  • SEER: 16.0 and above
  • Minimum EER: 12.5
  • Central A/C with Gas: $300
  • Heat Pump: $300
  • Residential Ground Source Heat Pump: $300/ton
    • SEER, 17 and above
    • Minimum EER, 17
  • Dual-fuel Heat Pumps are paid at the heat pump rate
  • Mini-splits are paid at the Central A/C rate for the replacement of a Central A/C unit


  • All-electric furnaces are not eligible.
  • If replacing multiple HVAC units at a single site, may receive up to a maximum of $1,200 in total rebates within the same calendar year.
  • If replacing multiple mini-split units at a single site, rebate is limited to one per site.