Connecticut Heat Pump Rebates & Incentives (2026)
Energize CT rebates of $250–$1,000 per ton are the primary heat pump incentive in Connecticut for 2026. The Smart-E Loan offers 0.99% APR financing through March 31, 2026. Federal tax credits ended December 31, 2025. Connecticut's $49.7 million in HEAR funding has not launched. This guide covers all major Connecticut heat pump incentives available in 2026, including Energize CT rebates, the Smart-E Loan, HES-IE income-eligible programs, and HEAR status. Here's what's actually available.
Last verified: March 22, 2026
Rates and program availability may change after this date.
Connecticut
Open
Connecticut heat pump incentives are active through Energize CT. Rebates range from $250–$1,000 per ton depending on system type and fuel switching. Federal tax credits ended December 31, 2025. HEAR rebates are funded but not yet available. The Smart-E Loan offers 0.99% APR financing through March 31, 2026.
The short version
✓ Energize CT Energy Optimization: $1,000/ton
Up to $10,000 per home for heat pumps replacing oil, propane, gas, or electric resistance as primary heat. Requires full decommission or qualified integrated control.
✓ Smart-E Loan: 0.99% APR financing
Up to $50,000 through CT Green Bank. 5–20 year terms, no money down, unsecured. Rate expires March 31, 2026 — lock in before this date.
✓ Total potential savings: $750–$10,000+
$750 (standard tier, 3-ton system) to $10,000 (Energy Optimization, large system). Income-eligible households below 60% AMI may receive free installations through HES-IE.
✗ Federal tax credits expired
Section 25C and 25D both ended December 31, 2025 under the One Big Beautiful Bill Act. No federal tax credit is available for 2026 installations.
⚠ HEAR rebates have not launched in Connecticut
Connecticut was allocated ~$49.7 million in HEAR funding, but the program has not launched. CT DEEP submitted blueprints to DOE in April 2025 — no start date set. Do not start a project expecting these rebates.
Federal tax credits are gone
The Section 25C Energy Efficient Home Improvement Credit and the Section 25D Residential Clean Energy Credit both expired December 31, 2025 under the One Big Beautiful Bill Act (P.L. 119-21). No federal tax credit is available for heat pump installations in 2026. Equipment purchased in 2025 but installed in 2026 does not qualify. The IRA's HEAR and HOMES programs were separately appropriated rebate funds — a legal distinction that preserved their funding even as tax credits were repealed.
Connecticut was allocated approximately $49.7 million for HEAR and $49.8 million for HOMES, but neither has launched. Full details on what changed with federal heat pump tax credits →
HEAR rebates: funded but not yet available
The Home Electrification and Appliance Rebates (HEAR) program is the largest potential incentive for Connecticut homeowners. CT DEEP submitted its State Implementation Blueprints to DOE at the end of April 2025. DEEP plans to contract with Eversource and United Illuminating to administer the program. As of March 2026, HEAR is not available to homeowners and no confirmed launch date has been set.
| Income tier | Heat pump rebate | Household cap |
|---|---|---|
| Below 80% AMI | Up to $8,000 | $14,000 |
| 80–150% AMI | Up to $4,000 | $14,000 |
| Above 150% AMI | — | Not eligible |
⚠ Do not count on HEAR for current projects
There is no launch date. Projects completed before the program opens may not qualify for rebates. Plan your budget using Energize CT rebates only, and treat HEAR as a potential future bonus.
HOMES program — also pending
Connecticut was allocated approximately $49.8 million in HOMES (Home Efficiency Rebates) funding for whole-home energy retrofits. HOMES provides performance-based rebates of $2,000–$8,000 tied to measured or modeled energy savings and is available at all income levels. Like HEAR, the HOMES program has not launched in Connecticut.
HEAR and HOMES cannot be combined for the same measure but can apply to different upgrades in the same home.
Energize CT rebates — the primary path in 2026
Energize CT is funded through a charge on customer energy bills and provides heat pump rebates to residential electric customers of Eversource and United Illuminating (UI). Two tiers are available based on how completely you replace your existing heating system.
Air-source heat pump rebates
| Tier | Rebate | Max per home | Qualifying scenario |
|---|---|---|---|
| Standard | $250/ton | $2,500 | Replacing existing heat pump, adding to unconditioned space, cooling only, or heating without integrated controls |
| Energy Optimization | $1,000/ton | $10,000 | Replacing oil, propane, gas, or electric resistance as primary heat — must decommission old system or use qualified integrated control |
⚠ Common mistake: installing before registering
Since July 1, 2024, all residential heat pump rebate applications require pre-registration and approval before installation. If you install before registering, you will not receive a rebate. There are no exceptions. Installation must be completed within 60 days of registration approval.
Energy Optimization qualification
To qualify for the $1,000/ton tier, you must either fully decommission the old heating system (fuel line disconnected and capped, thermostat disconnected, system disabled or removed) or integrate it using a qualified control listed on the Energize CT Heat Pump QPL that automatically switches below a set outdoor temperature (must be below 30°F). If inspection finds these requirements are not met, the rebate is downgraded to $250/ton.
Heat pump water heaters
Energize CT offers a $900 instant discount on qualifying heat pump water heaters for Eversource and UI electric customers. Available through participating distributors, participating retailers (present the Energize CT barcode), or as a mail-in rebate. Units must be ENERGY STAR certified with UEF ≥3.40 (integrated) or ≥2.20 (split-system or 120V/15A).
Smart-E Loan financing
The Connecticut Green Bank Smart-E Loan provides 0.99% APR financing up to $50,000 with 5–20 year terms, no money down, no prepayment penalty, and no home equity required. Must be an Eversource or UI customer using an HPIN contractor.
For oil and propane homes, the math often works immediately
A 3-ton Energy Optimization install with $3,000 in rebates financed through Smart-E at 0.99% APR can produce monthly loan payments lower than prior oil or propane heating costs — making the switch cash-flow-positive from day one.
How incentives stack
Connecticut's stacking picture is straightforward in 2026: Energize CT rebates plus Smart-E Loan financing. There is no state tax credit, no active federal credit, and no HEAR to add. When HEAR launches, it is expected to stack with Energize CT rebates since they come from different funding sources. Below are realistic scenarios for a 3-ton ducted heat pump installation costing $12,000–$16,000.
Above 150% AMI — Standard tier (not fuel-switching)
- Energize CT Standard (3 tons × $250): $750
- Federal tax credit: $0 (expired)
- HEAR: $0 (not launched)
Realistic maximum: ~$750
Any income — Energy Optimization (replacing oil/propane/gas/resistance)
- Energize CT Energy Optimization (3 tons × $1,000): $3,000
- Federal tax credit: $0 (expired)
- HEAR: $0 (not launched)
Realistic maximum: ~$3,000
Below 60% AMI — HES-IE (best case, available now)
- HES-IE: free heat pump installation + weatherization
- No out-of-pocket cost for qualifying households
Realistic maximum: full cost covered
What you'll actually pay
Against a typical $12,000–$16,000 installation: Energy Optimization reduces out-of-pocket to roughly $9,000–$13,000. Standard tier reduces it to roughly $11,250–$15,250. Income-eligible households through HES-IE may pay $0. Smart-E Loan financing spreads the remainder across 5–20 years at 0.99% APR.
Connecticut has no state tax credit for heat pumps and no statewide loan program beyond Smart-E. HES participants may qualify for 0% fixed-rate loans of $1,000–$3,000 through their utility bill.
HES-IE: free heat pumps for income-eligible households
The Home Energy Solutions – Income Eligible (HES-IE) program provides free energy assessments and upgrades — including heat pumps — to households with combined gross annual income at or below 60% of Connecticut's state median income. This is an existing program, separate from HEAR, and is available now. Covers no-cost energy assessment, air sealing, duct sealing, insulation, and heat pump installations.
Households already qualifying for Eversource's or UI's income-based payment assistance (Electric Discount Rate, Matching Payment Program) are also eligible. Homes that received HES or HES-IE services within the past six years are not eligible again. Contact: 877-WISE-USE (877-947-3873).
✓ Best candidates for Connecticut heat pump incentives
Oil or propane homes replacing their heating system (highest Energy Optimization rebate, largest energy savings, loan payments often lower than prior fuel costs). Electric resistance (baseboard) homes (qualifies for Energy Optimization, heat pumps are 2–3× more efficient). Low-income households below 60% AMI (free installation through HES-IE).
Connecticut climate context
Connecticut falls entirely within IECC Climate Zone 5A (cold-humid). Cold-climate heat pumps are the standard for rebate eligibility — all equipment must be ENERGY STAR 6.1 Cold Climate certified to qualify for Energize CT rebates.
| City | Heating design temp (99%) | Primary fuel displaced |
|---|---|---|
| Hartford | 7°F | Natural gas, oil |
| Bridgeport | 12°F | Natural gas, oil |
| New Haven | 9°F | Natural gas, oil |
Connecticut has a heavy oil-heating footprint — approximately 28% of households heat with fuel oil, among the highest rates nationally. Another 42% use natural gas and roughly 7% use electric resistance. Oil and propane households see the largest savings from heat pump conversions, typically 30–50% reductions in annual heating costs.
Considering pairing a heat pump with battery storage? See our guide to whether home batteries are worth it in 2026.
How to apply
The Energize CT rebate process requires specific steps in a specific order. Missing the pre-registration step disqualifies the entire project.
Choose an HPIN installer
Use the Find a Contractor tool at energizect.com. Get multiple quotes. Confirm the installer is recommending QPL-listed equipment.
Register your rebate before installation
Complete registration online at energizect.com/rebates. You'll need your signed contract and HPIN installer details. Wait for approval before scheduling installation.
Complete installation within 60 days
Your HPIN contractor installs the system. The 60-day clock starts from registration approval. If targeting Energy Optimization, ensure decommissioning or integrated control requirements are met.
Submit your rebate application
Upload your final paid invoice at energizect.com/rebates or submit by mail postmarked by February 27, 2027. Allow up to 90 days for payment processing.
What to watch
HEAR program launch
When active, HEAR would add up to $8,000 for heat pumps and $14,000 total for income-qualified households. Monitor CT DEEP's IRA page for updates.
Smart-E Loan rate expiration
The 0.99% APR expires March 31, 2026. Lock in before this date if you plan to finance your installation.
IRA funding runway
HEAR and HOMES are funded through 2031 or until exhausted. Connecticut's $99.5 million combined allocation remains available but the programs must launch before the deadline.
Energize CT rebate levels
Per program terms, rebate amounts are subject to change without notice. Funding is limited and available first-come, first-served.
Frequently asked questions
What heat pump rebates are available in Connecticut in 2026?
Energize CT offers $250 per ton (standard) or $1,000 per ton (Energy Optimization tier for fuel-switching) for qualifying air-source heat pumps, up to $10,000 per home. Heat pump water heaters receive a $900 instant discount. The Smart-E Loan provides 0.99% APR financing through March 31, 2026. Federal tax credits (25C/25D) expired December 31, 2025. HEAR rebates (~$49.7 million allocated) have not launched in Connecticut.
Can I stack Energize CT rebates with HEAR when it launches?
When HEAR launches, it is expected to be stackable with Energize CT utility rebates since they come from different funding sources. Right now, the primary stack is the Energize CT rebate plus Smart-E Loan financing. Income-eligible households at or below 60% AMI can access free heat pump installations through HES-IE instead.
What is the Energize CT Energy Optimization rebate?
The Energy Optimization tier provides $1,000 per ton (up to $10,000 per home) for heat pumps that replace oil, propane, natural gas, or electric resistance as the primary heating source. The pre-existing system must be either fully decommissioned or integrated using a qualified control listed on the Energize CT Heat Pump QPL with switchover set below 30°F. If inspection finds requirements unmet, the rebate drops to $250/ton.
Do I need a specific contractor for Energize CT heat pump rebates?
Yes. All installations must be performed by a contractor in the Energize CT Heat Pump Installer Network (HPIN). Using a non-HPIN contractor disqualifies the project entirely. Pre-registration is required before installation begins — since July 1, 2024. Installation must be completed within 60 days of registration approval.
Are Connecticut HEAR rebates available?
No. As of March 2026, Connecticut’s HEAR program has not launched. CT DEEP submitted its implementation blueprints to DOE in April 2025 but no confirmed launch date has been set. When active, HEAR is expected to provide up to $8,000 per heat pump and $14,000 total for income-qualified households below 150% AMI. Do not factor HEAR into current project budgets.
Disclaimer: This page covers the main statewide, utility, and IRA heat pump incentives available to Connecticut homeowners in 2026. It does not calculate savings, guarantee eligibility, or represent any incentive program. Connecticut has multiple overlapping programs with different rules — your specific situation depends on your utility, income, home type, and timing. We verify status regularly but programs can change without notice. Always confirm current amounts and eligibility with Energize CT and your contractor before making decisions.