Arizona homeowners may still qualify for a heat pump water heater rebate in 2026, but availability depends on the utility provider, household income, equipment selected, and program requirements.
What’s available will also vary by location. For example, those living in Phoenix and served by SRP may qualify for heat pump water heater rebates. Sun City West homeowners are served by APS, which does not currently offer a residential rebate specifically for heat pump water heaters as it has in the past.
The federal heat pump water heater tax credit has expired as well and is no longer available for installations completed in 2026.
Does APS Offer a Heat Pump Water Heater Rebate in 2026?
As of September 2026, APS does not offer a specific residential rebate for installing a heat pump water heater. Homeowners who remember earlier APS energy-efficiency incentives should not assume those same rebates are still available.
Utility rebate programs can change, so it is still worth checking current APS programs before purchasing equipment or scheduling installation.
Does SRP Offer a Heat Pump Water Heater Rebate in 2026?
As of September 2026, SRP offers a heat pump water heater rebate of up to $500 for customers replacing an existing water heater with a qualifying ENERGY STAR-certified heat pump model.
To qualify, the equipment must meet SRP’s required efficiency standards. Installation must also be performed by an Arizona-licensed contractor qualified to perform residential plumbing work. The current program requires installation before April 30, 2027. SRP also reserves the right to conduct site visits to verify that the installed equipment meets program requirements.
Efficiency Arizona May Offer Larger Incentives
Arizona’s Efficiency Arizona program can provide qualifying households with up to $1,750 toward a heat pump water heater. It may also provide up to $4,000 toward an electrical panel and up to $2,500 for qualifying electrical wiring work associated with eligible upgrades. However, the programs are income-limited and subject to program funding.
You can use the state’s eligibility screening tool to determine whether you may qualify for available assistance.
Higher Rebates May Be Available for Income-Qualified Households
Some low-income Arizona households may qualify for additional assistance through the Home Electrification and Appliance Rebate (HEAR) Program. Depending on household income and the improvements being completed, eligible residents may qualify for rebates totaling up to $1,750 for heat pump water heaters.
For homeowners who need both a new heat pump water heater and related electrical improvements, these programs can make a meaningful difference in the overall project cost because there also rebates up to $8,000 for other electrical installation costs.
What Happened to the Federal Heat Pump Water Heater Tax Credit?
One of the biggest changes in 2026 is the end of the federal Energy Efficient Home Improvement Credit.
Previously, qualifying heat pump water heaters could be eligible for a federal tax credit under this program. However, the IRS states that the credit is not available for qualifying property placed in service after December 31, 2025.
That means homeowners installing a heat pump water heater in 2026 should not include the former federal heat pump water heater tax credits when considering their expected out-of-pocket cost. This is worth checking carefully because older articles, rebate guides, and contractor websites may still refer to the previous federal credit.
Can You Combine Rebates?
Sometimes, but you should not assume every available incentive can automatically be combined. Different programs may have their own requirements involving:
- Utility service territory
- Household income
- Equipment efficiency
- Contractor qualifications
- Installation deadlines
- Eligible electrical upgrades
- Available program funding
One incentive may also affect how another program calculates eligible costs. For that reason, you’ll want to identify potential rebates before purchasing equipment and hiring a contractor.
Upgrading to a Heat Pump Water Heater
Upgrading to a heat pump water heater isn’t just a standard plumbing replacement. It often requires electrical work. Hybrid heat pump models typically require a dedicated 240-volt circuit and sufficient capacity in your home’s main service panel. If your panel is outdated or maxed out, installing a heat pump without an electrical evaluation can delay your project or trip breakers. Working with a combined plumbing and electrical provider like George Brazil means both systems are inspected at the same time. Our team ensures your plumbing setup and panel capacity are fully prepared for a seamless, code-compliant installation.
George Brazil can help evaluate your home, recommend qualifying heat pump water heater options, and identify installation requirements that may affect available rebates. Schedule water heater installation service today and see what heat pump water heater rebates are available in your area.