Both Phoenix-area utilities offer HVAC rebates: APS through its residential rebate programs and SRP through its home energy programs, and both commonly cover qualifying high-efficiency air conditioners and heat pumps, smart thermostats, and duct sealing or repair. Amounts and eligibility change yearly and usually require a participating contractor and specific efficiency ratings, so confirm the current program before you sign. Federal 25C tax credits for efficient HVAC ended for equipment placed in service after December 31, 2025, which makes utility rebates the main incentive for Valley homeowners in 2026.
Which utility you have and what each typically offers
APS serves most of Phoenix, Glendale, Peoria, Surprise, Avondale, Scottsdale, and north Valley areas. Its residential programs have commonly included rebates for qualifying AC and heat pump installs (often tied to a quality-installation verification), smart thermostats, and duct sealing.
SRP serves much of Mesa, Chandler, Gilbert, Tempe, and parts of Phoenix and Scottsdale. SRP's programs have commonly included rebates for high-efficiency AC and heat pump systems installed by participating contractors, smart thermostat rebates, and duct repair rebates.
Check your electric bill to see which utility you have. Some Valley addresses are near the boundary and the utility isn't obvious from the city name.
Because both programs change annually, use the utility's current rebate page (aps.com and srpnet.com) as the source of truth, and ask any installer to itemize the rebates they'll apply for on the quote.
How to actually get the rebate
Use a participating contractor. Both utilities generally require the install to be done by a contractor enrolled in their program, and the contractor typically submits the paperwork. An installer who isn't enrolled can't get you the rebate, whatever they say.
Meet the efficiency threshold. Rebates are usually tied to a minimum SEER2 or EER2 and sometimes to a verified quality installation (measured charge and airflow). The threshold is often above the federal minimum, so a baseline system may not qualify.
Get it in writing. The quote should state the rebate amount, whether it's applied as an instant discount or mailed later, and who submits it. Keep the AHRI certificate and the invoice.
What changed with federal credits and what it means for your decision
Through 2025, the federal 25C credit offset up to $2,000 for qualifying heat pumps and up to $600 for qualifying central AC. Federal legislation in 2025 ended 25C for property placed in service after December 31, 2025, so 2026 installs generally don't qualify. Confirm with a tax professional if you have equipment that was installed late in 2025.
That shifts the math toward utility rebates and toward choosing the efficiency tier on its own merits. In Phoenix, a mid-tier two-stage system often pencils out better than a top-tier variable-speed unit once the federal credit is out of the picture.
PhoenixCoolQuotes matches homeowners with licensed Valley installers, many of whom are enrolled in APS and SRP programs. We're a free matching service and don't administer rebates; ask each contractor which programs they participate in.
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