Delaware Heat Pump Rebates & Incentives (2026)
Energize Delaware's Home Performance with ENERGY STAR program offers $800–$2,200 for qualifying air-source heat pumps, with higher rebates for income-qualified households. Federal tax credits under Section 25C and Section 25D expired December 31, 2025. The IRA-funded HEAR program could add up to $8,000 per heat pump for eligible households once it launches. This guide covers all major Delaware heat pump incentives available in 2026, including Energize Delaware, Efficiency Smart, and IRA rebate programs. Here's what's actually available.
Last verified: March 23, 2026
Rates and program availability may change after this date.
Delaware
Open
Energize Delaware offers $800–$2,200 for air-source heat pumps through Home Performance with ENERGY STAR. DEMEC utility customers can stack Efficiency Smart rebates ($300–$750). HEAR ($8,000/HP) awaits DOE approval. Federal 25C/25D credits expired Dec 31, 2025.
Sources:
The Short Version
✓ Energize Delaware rebates are open
Home Performance with ENERGY STAR offers $800–$1,600 for central heat pumps (standard) and $1,200–$2,200 for income-qualified households. Heat pump water heaters get $1,100–$1,350.
✓ DEMEC utility rebates available
Customers of DEMEC municipal utilities (Newark, Middletown, Dover, Lewes, and others) can access Efficiency Smart rebates of roughly $300–$750 for air-source heat pumps, stackable with Energize Delaware.
✓ Total potential savings
$1,600–$3,000 (above 150% AMI) to $2,200–$4,050 (80–150% AMI) today. Full electrification packages with HEAR could reach ~$14,000 total incentives for households below 80% of Area Median Income (AMI) once that program launches.
✗ Federal tax credits expired
Section 25C ($2,000/year for heat pumps) and Section 25D (30% for geothermal) both ended December 31, 2025. No replacement has been enacted. Equipment installed in 2026 does not qualify.
⚠ HEAR program has not launched yet
Delaware's IRA-funded Home Electrification and Appliance Rebates (HEAR) program is still awaiting DOE approval as of March 2026. The rebates (up to $8,000 per heat pump for income-eligible households) are not yet available. Do not count on HEAR when budgeting a 2026 installation. Check with DNREC at 302-735-3480 for the latest status.
Federal Tax Credits Have Expired
The Section 25C Energy Efficient Home Improvement Credit and the Section 25D Residential Clean Energy Credit were both terminated by the One Big Beautiful Bill Act (Public Law 119-21), signed July 4, 2025. Neither credit is available for equipment installed after December 31, 2025. The "placed in service" date — when installation is fully complete — is what counts, not the purchase or contract date. Section 25C has no carryforward provision. Section 25D does allow carryforward of unused credits from qualifying 2025 installations.
Before expiration, Section 25C provided 30% of costs up to $2,000 per year for qualifying air-source heat pumps and heat pump water heaters. Section 25D provided an uncapped 30% credit for geothermal heat pump systems.
For more details on what changed and why, see our federal heat pump tax credit explainer.
Energize Delaware — Home Performance With ENERGY STAR
The Delaware Sustainable Energy Utility (DESEU), operating as Energize Delaware, runs the primary heat pump rebate program for the state. The Home Performance with ENERGY STAR (HPwES) program serves customers of Delmarva Power, Delaware Electric Cooperative, and DEMEC municipal utilities. Rebates are funded through Regional Greenhouse Gas Initiative (RGGI) proceeds.
A $50 home energy assessment ($25 for income-qualified households) by an approved contractor is required before claiming any rebates. Rebate reservations must be submitted before work begins.
Central Heat Pump Rebates
| Equipment | Efficiency Requirement | Standard | Income-Qualified |
|---|---|---|---|
| Central HP Tier 1 | ≥16 SEER2, ≥7.8 HSPF2 | $800 | $1,200 |
| Central HP Tier 2 | ≥17 SEER2, ≥8.2 HSPF2 | $1,600 | $2,200 |
| Hybrid HP + Furnace Tier 1 | HP Tier 1 + 95+ AFUE furnace | $1,450 | $2,300 |
| Hybrid HP + Furnace Tier 2 | HP Tier 2 + 96+ AFUE furnace | $2,250 | $3,300 |
Mini-Split Heat Pump Rebates
| Equipment | Efficiency Requirement | Standard | Income-Qualified |
|---|---|---|---|
| Mini-Split Tier 1 | ≥17 SEER2, ≥8.2 HSPF2 | $550 | $1,000 |
| Tier 1 additional head | — | $350 | $600 |
| Mini-Split Tier 2 | ≥20 SEER2, ≥8.6 HSPF2 | $1,100 | $1,700 |
| Tier 2 additional head | — | $550 | $900 |
Mini-split rebates capped at $4,000 per standard customer and $5,500 per income-qualified customer.
Heat Pump Water Heaters & Bundling Bonus
| Equipment | Requirement | Standard | Income-Qualified |
|---|---|---|---|
| Heat Pump Water Heater | ENERGY STAR certified | $1,100 | $1,350 |
| Bundling Bonus | Air sealing + HP within 3 months, ≥20% CFM reduction | $300 | $350 |
Standard HPwES incentives cannot exceed 50% of total installed cost. Income-qualified incentives are capped at 75% of installed cost. No explicit refrigerant exclusions (such as R-410A restrictions) appear in the current program — eligibility is based on efficiency ratings.
Geothermal Heat Pumps
The DNREC Green Energy Program provides grants for geothermal heat pumps at $800 per ton for the first two tons and $700 per ton thereafter, with a maximum of $5,000. Systems must meet minimum EER >18 and COP >3.6 (closed loop). Delaware Electric Cooperative has temporarily paused geothermal applications while evaluating the program.
Delaware has no state tax credits for heat pumps
Unlike some neighboring states, Delaware does not offer any state-level tax credits for heat pumps or energy efficiency improvements. All available incentives come through Energize Delaware rebates, utility programs, and (when launched) IRA-funded programs. The Energize Delaware Home Energy Efficiency Loan offers financing at 5.99% fixed for up to $50,000 over 10 years, but this is a loan, not a grant or credit.
IRA Rebates: HEAR & HOMES Programs
Delaware was allocated approximately $66 million in IRA Home Energy Rebate funding — roughly $33 million for the Home Efficiency Rebates (HOMES) program and $32.8 million for the Home Electrification and Appliance Rebates (HEAR) program. DNREC submitted its full application to DOE in August 2024.
⚠ Both programs are still awaiting DOE approval
As of March 2026, neither HEAR nor HOMES has launched in Delaware. The NEEP regional tracker listed both programs as "Awaiting Final Approval by DOE" as of July 2025. Delaware was not among the 23 states with active programs as of February 2026. Contact DNREC at 302-735-3480 or email DNREC.EnergyPrograms@delaware.gov for current status.
HEAR (When Launched)
HEAR provides point-of-sale rebates for income-eligible households. Households below 80% of Area Median Income (AMI) receive up to 100% of project costs. Households at 80–150% AMI receive up to 50% of costs. Households above 150% AMI are not eligible for HEAR.
| Equipment | Maximum Rebate |
|---|---|
| Heat pump (space heating/cooling) | $8,000 |
| Heat pump water heater | $1,750 |
| Heat pump clothes dryer | $840 |
| Electric panel upgrade | $4,000 |
| Wiring | $2,500 |
Per-household cap: $14,000. These rebates were not affected by the One Big Beautiful Bill Act.
HOMES (When Launched)
The HOMES program provides whole-house rebates of $2,000–$8,250 based on modeled energy savings, with enhanced amounts for low-and-moderate income households. Delaware plans to require at least one measure be air sealing or insulation. HOMES is income-tiered but available to all income levels, unlike HEAR.
Utility Programs by Provider
Delaware has three electricity provider groups. Heat pump rebate availability varies significantly depending on which utility serves your home.
Delmarva Power
Delmarva Power (an Exelon subsidiary serving New Castle County and parts of Kent County) does not operate its own heat pump rebate program for Delaware customers. Its "Home Energy Savings" rebate portal is a Maryland-only program funded by EmPOWER Maryland. Delaware Delmarva Power customers access rebates exclusively through Energize Delaware's HPwES program described above.
Delaware Electric Cooperative
Delaware Electric Cooperative (DEC) serves approximately 84,000 member-owners in Kent and Sussex counties. DEC offers a $300 grant for ENERGY STAR certified heat pump water heaters. Applications must be submitted within 60 days of purchase. The 2026 continuation of this program has not been confirmed — verify with DEC at 302-349-9090. DEC members are also eligible for Energize Delaware HPwES rebates.
DEMEC Municipal Utilities (Efficiency Smart)
The Delaware Municipal Electric Corporation (DEMEC) serves nine communities — Clayton, Dover, Lewes, Middletown, Milford, New Castle, Newark, Seaford, and Smyrna — through the Efficiency Smart platform. Dover joined in July 2025.
| Equipment | Estimated Rebate |
|---|---|
| Air-source heat pump | $300–$750 |
| Cold-climate air-source heat pump | $300–$750 |
| Heat pump water heater | $300 |
| Smart thermostat | $100 |
Efficiency Smart does not publicly display exact dollar amounts. Figures above are from third-party sources and may vary. All equipment must be ENERGY STAR certified. Applications must be submitted within three months of purchase.
DEMEC-area customers are also eligible for Energize Delaware HPwES rebates, making this the one group in the state that can potentially stack two separate rebate programs on the same installation.
How Programs Stack
Federal DOE guidance allows HEAR, HOMES, state, and utility rebates to stack on the same project, provided each program's requirements are independently met and total incentives do not exceed project cost. Today, stacking is limited to Energize Delaware plus Efficiency Smart (for DEMEC customers only).
Above 150% AMI — Tier 2 Central Heat Pump + HPWH
- Energize Delaware Tier 2 HP: $1,600
- Energize Delaware HPWH: $1,100
- Bundling bonus (air sealing + HP): $300
Realistic maximum: ~$3,000
Above 150% AMI — DEMEC Customer (Tier 2 HP + HPWH)
- Energize Delaware Tier 2 HP: $1,600
- Energize Delaware HPWH: $1,100
- Bundling bonus: $300
- Efficiency Smart ASHP: ~$750
- Efficiency Smart HPWH: ~$300
Realistic maximum: ~$4,050
Below 80% AMI — With HEAR (When Launched)
- HEAR heat pump: up to $8,000
- HEAR HPWH: up to $1,750
- Energize Delaware Assisted Tier 2 HP: $2,200
- Energize Delaware Assisted HPWH: $1,350
- Bundling bonus: $350
Theoretical maximum: ~$13,650 (capped at $14,000 HEAR household limit or project cost)
What you'll actually pay
For a typical $15,000–$20,000 ducted heat pump installation: above-150% AMI households should budget $12,000–$17,000 out of pocket after current rebates. Income-qualified households using Energize Delaware alone: $10,000–$15,000. If HEAR launches, low-income households could potentially cover most or all of the project cost.
Delaware has no state tax credits and no 0% loan program. The Energize Delaware loan at 5.99% can help with remaining out-of-pocket costs but does not reduce the total amount owed.
Weatherization Assistance Program
The Delaware Weatherization Assistance Program (WAP), administered by DNREC through the Energy Coordinating Agency, provides free energy improvements to income-eligible households — typically those at or below 200% of federal poverty guidelines. Through a DOE Sustainable Energy Resources for Consumers (SERC) grant, the program can install heat pump systems in eligible homes at no cost.
Priority is given to elderly residents, persons with disabilities, and households with children. This program operates independently of Energize Delaware rebates and HEAR.
✓ Best candidates for Delaware heat pump incentives
Homeowners replacing propane or heating oil systems (roughly 17% of Delaware homes) see the strongest economics. DEMEC municipal utility customers benefit from dual-program stacking. Income-eligible households should contact DNREC about WAP — free heat pump installation may be available. Anyone replacing both a furnace and air conditioner should consider a heat pump as a two-in-one upgrade.
Climate Context
Delaware falls entirely within IECC Climate Zone 4A (Mixed-Humid), qualifying as a cold-climate zone under the NEEP Cold Climate ASHP Specification. Modern cold-climate heat pumps maintain full heating capacity well above Delaware's design temperatures.
ASHRAE Design Temperatures
| Location | 99% Heating Design Temp | 1% Cooling Design Temp |
|---|---|---|
| Wilmington (New Castle County) | 16°F | 91°F |
| Dover (Kent County) | 18°F | 90°F |
| Georgetown (Sussex County) | 19°F | 89°F |
Delaware records approximately 4,999 heating degree days and 1,630 cooling degree days annually. Air conditioning penetration is 97% — tied for the highest rate in the nation. Because a heat pump replaces both furnace and air conditioner with a single system, nearly every Delaware home already has the cooling need that makes a heat pump a two-for-one upgrade.
Delaware's heating fuel mix is roughly 42% natural gas, 38% electricity, 9% propane, and 8% heating oil. The approximately 17% of homes using propane or heating oil represent the strongest economic case for heat pump conversion. For more on how home batteries can complement a heat pump by storing cheaper off-peak electricity, see our battery guide.
⚠ Common mistake: assuming Delaware is too cold for heat pumps
Delaware's 99% design temperature of 16–19°F is well within the operating range of modern cold-climate heat pumps, which maintain rated capacity down to 5°F. Below the 99% design temp occurs roughly 88 hours per year. A properly sized cold-climate unit handles Delaware winters without backup resistance heat for the vast majority of hours.
How to Apply
The primary path for most Delaware homeowners is through Energize Delaware's Home Performance with ENERGY STAR program.
Schedule a Home Performance assessment
Contact an Energize Delaware participating contractor. The assessment costs $50 ($25 for income-qualified households) and evaluates your home's energy performance.
Contractor submits rebate reservation
Your contractor reserves the rebate amount before work begins. This step is required — rebates cannot be claimed retroactively for work done without a reservation.
Install qualifying equipment
Work must be completed by the participating contractor. Equipment must meet the efficiency requirements for the rebate tier you're targeting.
Contractor submits final paperwork
After installation, the contractor submits completion documentation. The rebate is processed by Energize Delaware. DEMEC customers should also submit a separate Efficiency Smart application within three months of purchase.
What to Watch
HEAR launch timeline
Delaware's HEAR program, with up to $8,000 per heat pump for income-eligible households, has been awaiting DOE approval since August 2024. When it launches, it will be the single largest heat pump incentive available in the state. Monitor DNREC's IRA page for updates.
IRA funding runway
The IRA's home energy rebate programs were not repealed by the One Big Beautiful Bill Act, but political uncertainty around IRA implementation continues. Delaware's $66 million allocation remains available but must be obligated within the DOE-approved timeframe. Once funds are exhausted, they will not be replenished.
Energize Delaware rebate levels
The current HPwES rebate pricing sheet has an effective date of November 1, 2024. Rebate amounts and efficiency tiers can change when new pricing sheets are issued. RGGI funding levels, which support the program, depend on carbon allowance auction results that vary quarterly.
Frequently Asked Questions
What heat pump rebates are available in Delaware in 2026?
Energize Delaware’s Home Performance with ENERGY STAR program offers $800–$2,200 for central air-source heat pumps depending on efficiency tier and income level, plus $1,100–$1,350 for heat pump water heaters. DEMEC municipal utility customers can also access Efficiency Smart rebates of roughly $300–$750 for heat pumps. Federal Section 25C and 25D tax credits expired December 31, 2025 and are no longer available.
Can I stack Energize Delaware and Efficiency Smart rebates?
DEMEC municipal utility customers in towns like Newark, Middletown, Dover, and Lewes may be eligible for both Energize Delaware HPwES rebates and Efficiency Smart rebates on the same installation, since the programs are administered separately. Delmarva Power and Delaware Electric Cooperative customers access rebates through Energize Delaware only. When HEAR launches, its rebates should also stack with state and utility programs, subject to total project cost limits.
Is Delaware’s climate suitable for heat pumps?
Delaware falls in IECC Climate Zone 4A with winter design temperatures of 16–19°F. Modern cold-climate heat pumps perform well at these temperatures. Delaware also has significant cooling demand with summer design temperatures of 89–91°F and 97% air conditioning penetration, making heat pumps an efficient two-in-one replacement for both furnace and air conditioner.
Who administers Delaware’s heat pump rebate programs?
The Delaware Sustainable Energy Utility (DESEU), operating as Energize Delaware, administers the main Home Performance with ENERGY STAR rebate program. DNREC’s Division of Climate, Coastal and Energy manages the IRA-funded HEAR and HOMES programs. Efficiency Smart administers rebates for DEMEC municipal utility customers. Delaware Electric Cooperative runs its own smaller grant programs.
When will Delaware’s HEAR rebates launch?
As of March 2026, Delaware’s Home Electrification and Appliance Rebates (HEAR) program is still awaiting final DOE approval. DNREC submitted its application in August 2024. When launched, HEAR would provide up to $8,000 per heat pump for households below 80% of Area Median Income. Contact DNREC at 302-735-3480 for the latest status.
Sources
- DNREC — Home Energy Rebate Programs
- DNREC — Inflation Reduction Act Overview
- Energize Delaware — HPwES Rebate Pricing (PDF)
- Energize Delaware (DESEU)
- Energize Delaware — Loan Program
- Efficiency Smart — Home Energy Rebates
- DNREC — Weatherization Assistance Program
- IRS — 25C/25D Termination FAQ
- NEEP — Home Energy Rebates Roundup
- EIA — Delaware State Energy Profile
Disclaimer: This page covers the main statewide, utility, and IRA heat pump incentives available to Delaware homeowners in 2026. It does not calculate savings, guarantee eligibility, or represent any incentive program. Energize Delaware rebate amounts are based on the program pricing sheet effective November 1, 2024 and may be updated. HEAR and HOMES amounts reflect federal program design and may differ when Delaware's programs launch. We verify status regularly but programs can change without notice. Always confirm current amounts and eligibility with Energize Delaware, DNREC, and your contractor before making decisions.
See how this state compares → Heat Pump Rebates by State (2026)