HVAC rebates in Alabama

The clock matters here: Alabama Power’s $1,000 gas-to-heat-pump rebate ends permanently on December 1, 2026. If you are an Alabama Power customer with a gas furnace and have been considering the switch, this is the year to do it.

Alabama Power (central and south Alabama):

• High Efficiency Heat Pump Rebate — $1,000 back when switching from gas to a high-efficiency heat pump. Requirements: active residential customer and property owner; switch from a gas furnace to an all-electric heat pump rated 18 SEER2 (20 SEER) or higher; the unit must be the home’s dominant HVAC system; apply within 90 days of purchase. Ends permanently December 1, 2026.
• Smart Thermostat Rebate — up to $200 back as a digital gift card. Single-family residence, homeowner or homeowner consent, apply within one year of purchase, one rebate per account.

TVA EnergyRight (north Alabama, through local power companies like Huntsville Utilities):

• Heat pump: $800 at 17+ SEER2, $500 at 15-16.99 SEER2
• Central AC: $400 at 17+ SEER2, $250 at 15-16.99 SEER2
• Ductless mini-split: $800 (17+ SEER2)
• Geothermal: $1,500
• Duct sealing: $300
• HVAC tune-up: $50
• Smart thermostat: up to $100

The TVA catch: all upgrades must be completed by a member of TVA’s Quality Contractor Network, equipment must meet TVA standards in effect on the installation date, and the contractor typically submits the rebate for you. Ask contractors up front whether they are QCN members — a cheaper bid from a non-member can cost you $800.

Which program applies depends purely on who sends your power bill.