APS Cut Its HVAC Rebate for 2026: Here's How Phoenix Homeowners Can Still Save

If you're an APS customer in the Phoenix area and you've been putting off a new AC or heat pump because you were counting on a utility rebate, here's the update: that rebate is gone. The Arizona Corporation Commission voted to discontinue APS's residential energy efficiency rebate program effective January 1, 2026, which means AC replacement, heat pump, and smart thermostat rebates are no longer available to APS customers.

The good news is that "APS ended its rebate program" doesn't mean "no rebates exist in Phoenix." It means the path to savings changed. Here's what actually happened, who it affects, and where Phoenix homeowners can still find real money toward a new system in 2026.

What Changed for APS Customers in 2026

For years, APS offered rebates that made high-efficiency AC and heat pump upgrades more affordable for homeowners across its service territory, which covers most of the Phoenix metro area, including Scottsdale, Glendale, Peoria, Tempe, and large parts of central and west Phoenix. As of January 1, 2026, that program is closed. If you're an APS customer replacing your AC or heat pump this year, there's no longer a utility rebate check waiting for you at the end of the process.

This wasn't a quiet policy tweak. It was a formal Corporation Commission decision, and it affects a large share of Phoenix-area homeowners, since APS is one of the two dominant electric utilities in the valley.

Are You an APS Customer or an SRP Customer?

This distinction matters more than ever right now, because it determines what's still available to you. Phoenix is unusually split between two major utilities: APS and SRP (Salt River Project). Coverage varies block by block in some neighborhoods, so the fastest way to check is to look at your electric bill. If SRP is your provider, the rebate landscape looks very different, and better, than it does for APS customers. We'll get to that next.

What Phoenix Homeowners Can Still Claim in 2026

• SRP Cool Cash: If you're an SRP customer, this rebate is still active and can be worth up to $1,125 or more on a new AC, heat pump, or mini-split, depending on the equipment's efficiency tier. (We break down exactly how it's calculated in a separate guide.)
• Efficiency Arizona HEAR rebates: Income-qualifying Arizona households, APS and SRP customers alike, can access Home Electrification and Appliance Rebate (HEAR) funding of up to $8,000 toward a qualifying heat pump. These rebates are typically applied at the point of sale, so the discount shows up on the invoice rather than as a reimbursement check months later.
• The upcoming HOMES program: Arizona's HOMES rebate program, which is expected to open to homeowners at all income levels later in 2026, is the one to watch if you're an APS customer with no other rebate path. It isn't live yet, but it's the most likely source of a future APS-territory rebate.
• Manufacturer and dealer promotions: With the utility rebate off the table, manufacturer rebates and contractor financing offers matter more than they used to for APS customers specifically.

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Why This Still Matters Even Without a Rebate

A rebate was never the whole reason to replace an aging AC system in Phoenix. A unit that's 12 to 15 years old is running well below the efficiency of anything sold today, and in a climate where the AC runs nearly year-round, that gap shows up directly on the power bill. The math on replacement still works for a lot of APS households, it just doesn't include a rebate line item anymore.

How to Maximize Savings on a New System Without the APS Rebate

• Ask about income-qualified HEAR eligibility before you assume you don't qualify. The thresholds are higher than most homeowners expect.
• Compare quotes on SEER2-rated equipment. Higher efficiency costs more upfront but lowers the summer bills that make up most of a Phoenix household's annual electric spend.
• Ask your contractor about 0% or low-interest financing options, which can offset the loss of a rebate more effectively than waiting for one to reappear.
• If you're not sure whether you're APS or SRP, check before you assume. Some homeowners find out mid-project that they actually qualify for Cool Cash.

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Save Even More: Empower's HVAC Deal Is Extended Through August

Between the loss of the APS rebate and rising equipment costs, replacing an aging system can feel like a bigger decision than it used to be. Empower's current HVAC promotion is designed to close that gap. Extended through August, Phoenix homeowners who install a new HVAC system with Empower can get $2,000+ back, combining $1,776 toward a new unit with a $250 VISA gift card upon install, plus $0-down financing options to spread out the rest.

This offer stacks on top of anything you already qualify for through SRP Cool Cash or Efficiency Arizona HEAR, so it's worth checking your eligibility for all three before you finalize a quote.

Empower's HVAC Deal: $2,000+ Back, Extended Through August

See full offer details, terms, and eligibility on the promotion landing page.

Redeem My $2,000+

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FAQ

Is the APS rebate program coming back?

Not as it existed before. Arizona's HOMES program is expected to open to APS customers of all income levels later in 2026, which is the most likely path to a new rebate, but it's a different program with its own rules and funding cap.

Do SRP customers still get a rebate?

Yes. SRP's Cool Cash program is separate from APS and remains active, offering up to $1,125 or more depending on the equipment installed.

How do I know if I'm an APS or SRP customer?

Check your electric bill or account portal. Coverage in the Phoenix metro is split by neighborhood, not by city, so it's worth confirming rather than assuming.

What if I don't qualify for HEAR based on income?

You can still take advantage of manufacturer rebates, contractor financing, and the long-term energy savings of a higher-efficiency SEER2 system, even without a utility or income-qualified rebate.

Ready to talk it through? Call Empower Home Services at 800-306-6953 or visit empoweryourhome.com to schedule a free consultation.