Arkansas Heat Pump Rebates & Incentives (2026)
Arkansas heat pump incentives in 2026 are limited to utility rebates. SWEPCO offers up to $2,500 and OG&E up to $3,000 for qualifying systems, but Entergy Arkansas — the state's largest utility — has no central heat pump rebate. The state's $105 million in IRA-funded HEAR/HOMES rebates have not launched yet. This guide covers all major Arkansas heat pump incentives available in 2026, including SWEPCO, OG&E, Entergy, cooperative programs, and the pending IRA rebates. Here's what's actually available.
Last verified: March 24, 2026
Rates and program availability may change after this date.
Arkansas
Limited / Region-Dependent
Arkansas heat pump incentives are limited to utility rebates. SWEPCO offers $250–$600/ton (up to ~$2,500–$3,000 per address). OG&E offers up to $3,000 in the Fort Smith area. Entergy Arkansas has no central HP rebate. Federal 25C/25D expired Dec 2025. The state’s $105M HEAR/HOMES allocation has not launched.
Sources:
The Short Version
✓ SWEPCO utility rebates
Up to $500/ton for qualifying heat pumps (max ~$2,500 per address) or $600/ton for electric resistance conversions (max ~$3,000). Up to $1,150 for heat pump water heaters.
✓ OG&E utility rebates
Up to $3,000 for HVAC replacement in the Fort Smith area. Must be an existing home built before 2016.
✓ Potential savings
$2,500–$3,000 (above 150% AMI) to $11,000+ (below 80% AMI, when HEAR launches). Full electrification packages can reach ~$17,000 total incentives.
✗ Federal tax credits expired
Section 25C and 25D both ended December 31, 2025. No federal heat pump tax credit is available for 2026 installations.
⚠ IRA rebates not yet available
Arkansas was allocated ~$105 million in IRA HEAR/HOMES funding, but the program has not launched. The Arkansas Energy Office anticipated early 2026 — no date has been set. Do not start a project expecting these rebates.
Federal Tax Credits Have Ended
Section 25C (Energy Efficient Home Improvement Credit) and Section 25D (Residential Clean Energy Credit) both expired for equipment placed in service after December 31, 2025. The One Big Beautiful Bill Act (signed July 4, 2025) accelerated their sunset. If you had a qualifying heat pump installed and operational on or before December 31, 2025, you can still claim the credit on your 2025 tax return. Systems purchased in 2025 but installed in 2026 do not qualify.
When active, Section 25C provided 30% of cost up to $2,000 specifically for heat pumps. Section 25D covered geothermal heat pumps at 30% with no dollar cap. Neither credit has been reinstated or replaced.
IRA HEAR Rebates — Approved but Not Launched
The Home Electrification and Appliance Rebates (HEAR) program is the largest potential incentive for Arkansas homeowners. The Arkansas Energy Office (AEO), part of the Division of Environmental Quality, is the administering agency. Arkansas was allocated roughly $52.4 million in HEAR funding. As of March 24, 2026, the program has not launched — the AEO states the Home Energy Rebates Program is not yet available in Arkansas.
HEAR rebate amounts (when launched)
| Household Income | Heat Pump (ASHP) | HPWH | Electrical Panel |
|---|---|---|---|
| Below 80% AMI | Up to $8,000 | Up to $1,750 | Up to $4,000 |
| 80–150% AMI | Up to $4,000 | Up to $1,750 | Up to $4,000 |
| Above 150% AMI | — | — | — |
The total HEAR cap per household is $14,000. Projects initiated after August 16, 2022 may be eligible for retroactive rebates, though this is not guaranteed. Contact: Home.Energy.Rebates@arkansas.gov.
⚠ Do not count on HEAR for projects starting now
There is no launch date. Projects completed before the program opens may not qualify for rebates. Plan your budget using utility rebates only, and treat HEAR as a potential bonus.
IRA HOMES Rebates — Also Pending
The Home Efficiency Rebates (HOMES) program covers whole-home energy retrofits. Arkansas was allocated roughly $52.7 million in HOMES funding. HOMES offers rebates based on measured or modeled energy savings across the entire home — not per-appliance like HEAR. HOMES is available at all income levels.
| Household Income | 20%+ Energy Savings | 35%+ Energy Savings |
|---|---|---|
| Below 80% AMI | Up to $8,000 | Up to $8,000 |
| 80–150% AMI | Up to $4,000 | Up to $4,000 |
| Above 150% AMI | Up to $2,000 | Up to $4,000 |
HOMES and HEAR cannot be combined for the same measure. HOMES is best suited for homeowners doing comprehensive upgrades (insulation + HVAC + air sealing). Like HEAR, HOMES has not launched in Arkansas.
Utility Rebates — What's Actually Available Now
Utility rebates are the only active heat pump incentives in Arkansas in 2026. These are mandated by the Arkansas Public Service Commission and funded through ratepayer cost-recovery riders. Your rebate depends entirely on which utility serves your home.
SWEPCO (Northwest & Western Arkansas)
Southwestern Electric Power Company offers the strongest heat pump incentives in Arkansas through its 2026 Residential Energy Improvement Program (REIP). Rebates are per-ton and tier-based.
| Measure | Rebate | Requirements |
|---|---|---|
| Heat pump (Tier 1) | $250/ton | 15.2–17.09 SEER2, ≥7.25 HSPF2 |
| Heat pump (Tier 2) | $400/ton | 17.1–19.94 SEER2 |
| Heat pump (Tier 3) | $500/ton | ≥19.95 SEER2 |
| Electric resistance to HP conversion | $600/ton | ≥15.2 SEER2, full system replacement |
| Heat pump water heater | $1,150 | ENERGY STAR certified, replaces electric tank |
| Smart thermostat | $75 | ENERGY STAR certified, limit 2 |
All SWEPCO HVAC work must use a SWEPCO-approved contractor. For a typical 3-ton system, expect $750–$1,500 depending on efficiency tier. A 5-ton system at the highest tier reaches $2,500. Households replacing electric resistance heating can receive up to $600/ton — up to $3,000 for a 5-ton system. SWEPCO caps total incentives at $2,500 per service address for standard replacements.
OG&E (Fort Smith Area)
Oklahoma Gas & Electric serves western Arkansas including Fort Smith. Their Home Energy Efficiency Program offers up to $3,000 for HVAC replacement in existing homes built before 2016. An Arkansas-licensed HVAC professional and AHRI Certificate are required. Applications must be submitted within 30 days of installation. Funds are first-come, first-served. Income-qualified weatherization services (free caulking, sealing, insulation) are available through their partner Skyline Energy Solutions.
Entergy Arkansas (Central & Eastern Arkansas)
⚠ No central heat pump rebate from Entergy
Entergy Arkansas is the state's largest electric utility, covering most of central and eastern Arkansas. It does not offer a rebate for central air-source heat pumps. Entergy provides up to $500 for heat pump water heaters through its Point of Purchase Solutions program at participating Lowe's locations.
Liberty Utilities / Empire District (NW Arkansas Corridor)
Liberty Utilities serves the Fayetteville–Springdale–Rogers corridor. No residential HVAC rebate program has been confirmed for 2026. Contact 1-800-206-2300 for current offerings.
Electric Cooperatives
Most Arkansas electric cooperatives offer loan programs rather than direct cash rebates for heat pumps.
| Cooperative | Incentive Type | Details |
|---|---|---|
| Carroll Electric | Cash rebate | Heat pump rebate available (contact for current amounts) |
| North Arkansas Electric | 1% interest loan | Up to $20,000, 8-year term for ASHP |
| First Electric | Home improvement loan | $500–$15,000, repaid on monthly bill |
| Ozarks Electric | Free energy audit | No direct HVAC rebate confirmed |
Your utility territory determines your rebate
The gap between SWEPCO/OG&E customers ($1,500–$3,000) and Entergy customers ($0 for central heat pumps) is the defining feature of Arkansas heat pump incentives. Check your electric bill to confirm your utility before planning.
How Incentives Stack
Federal guidelines confirm that HEAR rebates can stack with utility rebates. HEAR and HOMES cannot be combined for the same measure. Since federal 25C/25D expired, the only stacking question in 2026 is utility + HEAR (when launched). Total combined incentives cannot exceed total project cost. Arkansas has no state tax credit and no statewide loan program to add to the stack.
Above 150% AMI — Ducted heat pump replacement
- SWEPCO or OG&E utility rebate: $1,500–$3,000
- HEAR: not eligible
- Federal tax credit: expired
Realistic maximum: ~$3,000
80–150% AMI — Ducted heat pump replacement (when HEAR launches)
- HEAR heat pump rebate (50% of cost): up to $4,000
- SWEPCO or OG&E utility rebate: $1,500–$3,000
Realistic maximum: ~$7,000
Below 80% AMI — Ducted heat pump replacement (when HEAR launches)
- HEAR heat pump rebate (100% of cost): up to $8,000
- SWEPCO or OG&E utility rebate: $1,500–$3,000
Realistic maximum: ~$11,000
What you'll actually pay
A typical ducted heat pump system in Arkansas costs $12,000–$18,000 installed. Today, with utility rebates only, expect $9,000 to $15,000 out of pocket. If you qualify for HEAR when it launches, that drops to $1,000 to $7,000 out of pocket depending on income and utility territory. Entergy customers have the least support — plan for higher out-of-pocket costs.
For comparison, Texas also lacks a statewide program but Austin Energy offers up to $3,000 plus 0% financing. Arkansas and Texas share the same challenge: your incentives depend heavily on which utility serves your address.
Arkansas has no state tax credit and no statewide low-interest loan program. Entergy Arkansas customers receive $0 for central heat pumps, reducing maximum stacks significantly in central and eastern Arkansas.
Weatherization Assistance Program
The Arkansas Weatherization Assistance Program (WAP) provides free energy efficiency improvements averaging roughly $5,000 per home. The program is managed by the Arkansas Energy Office through six regional Community Action Agencies covering all 75 counties. Heat pumps may be installed when the required energy audit determines cost-effectiveness.
Eligible households must earn at or below 200% of Federal Poverty Guidelines, with priority for elderly, disabled, and families with children. The utility-funded Arkansas Weatherization Program (AWP) adds $1,058–$2,116 per home.
✓ Best candidates for WAP
Low-income homeowners heating with electric resistance or propane, especially in rural areas without gas service. If you qualify, WAP can cover weatherization measures that reduce heating costs by 20–30% before you even consider a heat pump upgrade.
Climate Context
Arkansas spans IECC Climate Zone 3A (warm-humid) across most of the state and Zone 4A (mixed-humid) in the northern Ozark counties. Heat pumps perform well across the entire state.
| City | Winter Design Temp (99%) | Climate Zone | Heat Pump Type |
|---|---|---|---|
| Little Rock | 20°F | 3A | Standard ASHP |
| Fort Smith | 20°F | 3A | Standard ASHP |
| Fayetteville | 15°F | 4A | Cold-climate recommended |
| Jonesboro | 19°F | 3A | Standard ASHP |
Roughly half of Arkansas homes already heat with electricity (a mix of heat pumps and resistance heating), while about 40% use natural gas. An estimated 5–8% rely on propane in rural areas. Propane and electric-resistance households see the largest savings from heat pump conversions — typically 30–55% reduction in heating costs. Arkansas's residential electricity rate of roughly $0.13/kWh is well below the national average, further strengthening the economics.
For more on battery storage and whole-home energy strategy, see our home battery guide.
How to Apply
Check your utility territory
Look at your electric bill to confirm whether you're served by SWEPCO, OG&E, Entergy, Liberty, or a cooperative. This determines which rebates you can access.
Get quotes from approved contractors
SWEPCO requires a SWEPCO-approved contractor. OG&E requires an Arkansas-licensed HVAC professional. Get 2–3 quotes and confirm they'll handle rebate paperwork.
Submit your utility rebate application
OG&E applications must be submitted within 30 days of installation. SWEPCO rebates are processed through approved contractors. Keep all receipts, AHRI certificates, and contractor documentation.
Watch for HEAR launch
If your household earns below 150% of Area Median Income (AMI), the HEAR program could add $4,000–$8,000 when it launches. Monitor the AEO website or email Home.Energy.Rebates@arkansas.gov for updates.
What to Watch
HEAR/HOMES launch date
The AEO anticipated early 2026 but has not announced a launch date. When activated, this will be the single largest incentive available to most Arkansas homeowners. Check adeq.state.ar.us/energy regularly.
IRA funding runway
The One Big Beautiful Bill Act preserved IRA home rebate funding but did not add to it. Once Arkansas launches HEAR/HOMES, the $105 million is first-come, first-served until exhausted. States that launched early (like Wisconsin) are drawing down funds faster.
Utility program renewals
Arkansas utility efficiency programs are mandated by the APSC and renewed periodically. Rebate amounts and qualifying equipment can change between program cycles. Confirm current amounts before committing.
Frequently Asked Questions
What heat pump rebates are available in Arkansas in 2026?
Arkansas heat pump rebates come from your electric utility. SWEPCO offers $250–$600 per ton (up to ~$2,500–$3,000 for a typical 5-ton system) in northwest and western Arkansas. OG&E offers up to $3,000 in the Fort Smith area. Entergy Arkansas does not offer a central heat pump rebate but provides $500 for heat pump water heaters. Federal tax credits (25C/25D) expired December 31, 2025. The state’s $105 million in IRA-funded HEAR/HOMES rebates have not launched yet.
Can I stack utility rebates with HEAR in Arkansas?
Yes. When Arkansas launches its HEAR program, federal guidelines allow HEAR rebates to stack with utility rebates. A household below 80% AMI could combine up to $8,000 in HEAR with up to $3,000 in utility rebates for roughly $11,000 total. HEAR and HOMES cannot be combined for the same measure, and total incentives cannot exceed project cost.
Does Entergy Arkansas offer heat pump rebates?
Entergy Arkansas does not offer a central air-source heat pump rebate. This is a significant gap since Entergy is the state’s largest electric utility, serving most of central and eastern Arkansas. Entergy does offer up to $500 for heat pump water heaters through its Point of Purchase Solutions program at participating retailers.
Do heat pumps work well in Arkansas winters?
Yes. Most of Arkansas falls in IECC Climate Zone 3A with winter design temperatures around 17–20°F. Standard air-source heat pumps perform well here. In the Ozark counties (Zone 4A), winter design temperatures drop to 11–15°F. Cold-climate heat pump models are advisable in northern Arkansas but not strictly necessary across most of the state.
When will Arkansas launch its IRA rebate program?
Arkansas was allocated roughly $105 million in IRA HEAR/HOMES funding. The Arkansas Energy Office anticipated launching in early 2026, but as of March 2026 the program remains unavailable. The program page at ADEQ says the Home Energy Rebates Program is not yet available in Arkansas. Contact Home.Energy.Rebates@arkansas.gov for updates.
Sources
- Arkansas DEQ — Home Energy Rebates Program
- SWEPCO — Residential Energy Improvement Incentives
- SWEPCO — 2026 REIP Incentive Table (PDF)
- OG&E — Arkansas Rebates
- Entergy Arkansas — Residential Efficiency Programs
- Carroll Electric Cooperative — Heat Pump Rebate
- North Arkansas Electric Cooperative — Energy Efficiency Loans
- Arkansas DEQ — Weatherization Assistance Program
- IRS — 25C/25D Termination FAQ
Disclaimer: This page covers the main utility and IRA heat pump incentives available to Arkansas homeowners in 2026. It does not calculate savings, guarantee eligibility, or represent any incentive program. Cooperative rebates and municipal utility programs may vary — contact your local utility for current details. We verify status regularly but programs can change without notice. Always confirm current amounts and eligibility with your utility and contractor before making decisions.