Georgia heat pump rebates and incentives in 2026
Georgia homeowners can still access $2,000 to $18,500 in heat pump rebates in 2026 — but the landscape shifted twice: federal tax credits expired December 31, 2025, and in August 2026 Georgia paused new HEAR applications and, under updated federal rules, ended HEAR rebates for gas-to-electric conversions. The main incentives still open are Georgia's IRA-funded HER whole-home program, plus utility rebates from Georgia Power and the state's EMCs. This guide covers all major Georgia heat pump incentives available in 2026, including HER, the HEAR pause, Georgia Power HEIP, and EMC programs. Here's what's actually available — and what you'll realistically get after rebates.
Updated and sources last checked August 23, 2026
Rates and program availability may change after this date.
Georgia
Limited / Region-Dependent
HEAR paused all new applications Aug 14, 2026, and stopped fuel-switching rebates Aug 10 under DOE Notice 26-2. HER whole-home rebates remain open: up to $4,000 (all incomes) or $16,000 (≤80% AMI). Georgia Power HEIP up to $1,850. EMC rebates $100–$600. Federal 25C/25D credits expired Dec 2025.
Sources:
The short version
✓ HER whole-home rebates up to $16,000
The Home Efficiency Rebates program rewards whole-home energy reductions and is fuel-neutral and still open. All income levels qualify: up to $4,000 for households above 80% AMI, up to $16,000 for income-qualified households achieving 35%+ energy savings.
✓ Utility rebates up to $2,500 a year
Georgia Power's 2026 HEIP covers up to $1,500 for converting an electric furnace to an air-source heat pump and up to $1,850 for its Home Comfort Bundle, capped at $2,500 per customer per year. EMC cooperative rebates range $100–$600 depending on your provider.
✓ Total potential: $2,000–$18,500
$2,000–$6,500 (above 80% AMI) to $12,000–$18,500 (at or below 80% AMI), combining HER with Georgia Power or EMC rebates. Households with HEAR applications approved before the August 2026 pause can still reach higher totals.
✗ Federal tax credits expired
Both Section 25C ($2,000/year for heat pumps) and Section 25D (30% for geothermal) expired December 31, 2025 under the One Big Beautiful Bill Act. No replacement has been enacted.
⚠ HEAR is paused — and no longer covers gas-to-heat-pump conversions
GEFA stopped accepting fuel-switching HEAR projects on August 10, 2026 (per DOE Program Notice 26-2) and paused all new HEAR applications on August 14, 2026. Applications submitted before those deadlines are still being reviewed, subject to available funding. If HEAR reopens, the updated federal rules allow rebates only for upgrading existing electric equipment.
Federal tax credits have expired
Both Section 25C and Section 25D federal tax credits expired on December 31, 2025. The One Big Beautiful Bill Act (signed July 4, 2025) terminated these credits seven years ahead of their original 2032 sunset. Section 25C had provided up to $2,000/year for air-source heat pumps. Section 25D had provided 30% with no cap for geothermal heat pumps. Neither is available for systems installed in 2026 or later. Read more about what changed.
The "placed in service" rule is critical for Georgia homeowners in the transition period. Per IRS guidance, the installation date — not the payment date — controls eligibility. A heat pump installed before December 31, 2025 but paid for in January 2026 qualifies for the 2025 credit. A heat pump paid for in 2025 but installed in 2026 does not. Section 25D does permit carryforward of unused credit amounts to future tax years.
Home Electrification and Appliance Rebates (HEAR) — paused
⚠ Not accepting new applications
Effective August 14, 2026, GEFA is no longer accepting new HEAR applications while its review team works through submitted volume. Fuel-switching projects stopped being accepted earlier, on August 10, 2026, to meet DOE's updated program guidance. Applications submitted before those deadlines will be reviewed and may be processed, subject to available funding.
HEAR provided point-of-sale rebates — the discount applied at purchase through a GEFA-approved contractor, not claimed on taxes later — for households earning at or below 150% of Area Median Income (AMI). The Georgia Environmental Finance Authority (GEFA) administers the program through energyrebates.georgia.gov, where reopening details will be posted.
HEAR rebate amounts (applications submitted before the pause)
| Equipment | Maximum rebate |
|---|---|
| Heat pump (space heating/cooling) | $8,000 |
| Heat pump water heater | $1,750 |
| Electric stove, cooktop, range, or heat pump dryer | $840 |
| Electrical panel upgrade | $4,000 |
| Insulation, air sealing, ventilation | $1,600 |
| Electric wiring | $2,500 |
| Maximum total per household | $14,000 |
Income tiers
For applications in the review pipeline: households at or below 80% AMI receive up to 100% of project costs, households between 80–150% AMI receive up to 50% of costs, and households above 150% AMI are not eligible for HEAR.
The electrification rule flipped in 2026
Under HEAR's original rules, a Qualified Electrification Project meant fuel switching: replacing a gas furnace with a heat pump qualified, and replacing existing electric equipment did not. DOE's updated guidance (Program Notice 26-2, effective May 29, 2026) reversed this — rebates now apply only when upgrading existing electric equipment to more efficient electric equipment. Applications submitted before Georgia's August 10 fuel-switching deadline are reviewed under the rules in effect when submitted. If you heat with gas or propane and missed that window, HER is now your program.
Home Efficiency Rebates (HER)
HER takes a whole-home, performance-based approach. Unlike HEAR, all income levels qualify — but rebate amounts vary by income. Projects must achieve a minimum 20% modeled or measured energy reduction through qualifying improvements. All HER projects require a BPI-certified, GEFA-approved contractor who performs energy modeling.
HER rebate amounts by income
| Income tier | ≥20% energy savings | ≥35% energy savings |
|---|---|---|
| At or below 80% AMI | Up to $10,000 | Up to $16,000 |
| Above 80% AMI | Up to $2,000 | Up to $4,000 |
Eligible improvements include heat pump HVAC, heat pump water heaters, insulation, air sealing, duct sealing, and window/door upgrades. A household with a HEAR application in the pipeline can use both HEAR and HER — but not for the same upgrade.
HER is now Georgia's primary heat pump program
With federal credits gone and HEAR paused, HER is the most valuable tool for Georgia homeowners at every income level — and because it is fuel-neutral, it remains the path for gas- and propane-heated homes that HEAR no longer serves. The tradeoff: it requires a whole-home approach with documented energy savings rather than a simple equipment swap. Pair a heat pump with insulation and air sealing to hit the 20% savings threshold.
Utility rebates: Georgia Power and EMCs
Georgia Power — Home Energy Improvement Program (HEIP)
Georgia Power, the state's largest utility serving roughly 2.7 million customers, refreshed HEIP for a new 2026–2028 program cycle with updated rebate amounts effective August 1, 2026. Rebates cover 50% of installed cost up to each measure's cap, with a program-wide limit of $2,500 per customer per year. Applications must be submitted within 60 days of the paid-in-full invoice. Equipment must be ENERGY STAR-certified.
| Improvement | HEIP rebate (50% of cost, up to cap) |
|---|---|
| Conversion to air-source heat pump (electric furnace replacement only) | Up to $1,500 |
| Ductless mini split heat pump (instant rebate via participating installer) | Up to $500 |
| Heat pump water heater | Up to $800 |
| Conversion to ground-source heat pump | Up to $300 |
| Home Comfort Bundle (insulation + air sealing + duct sealing + assessment) | Up to $1,850 electric-heated / $1,550 gas-heated |
| Comfort Duo (insulation + air sealing + assessment) | Up to $1,150 electric-heated / $950 gas-heated |
One condition matters more than the dollar amounts: the headline $1,500 heat pump conversion rebate applies only when replacing an existing electric furnace — the installer must attest the heat pump replaced electric equipment. Gas- and propane-heated homes cannot use it, which mirrors the federal 26-2 electric-to-electric rule; those households should look to HER for the heat pump itself and can still use HEIP's weatherization bundles at the gas-heated caps.
EMC rebates across Georgia's cooperatives
Georgia's 41 Electric Membership Cooperatives serve roughly 4 million residents, primarily in suburban and rural areas. Rebate programs differ significantly by cooperative. No consolidated statewide EMC rebate list exists.
| EMC | Heat pump rebate | HPWH rebate | Notes |
|---|---|---|---|
| Jackson EMC | $400 | $500 | Min 15.2 SEER2, total electric only |
| GreyStone Power | $300–$600 | $200–$400 | Gas-to-electric conversion only |
| Sawnee EMC | $100/ton | $200 | Min 16.2 SEER2, load mgmt required |
| Central Georgia EMC | $200–$400 | — | Min 14.3 SEER2, no dual fuel |
| Walton EMC | $200 | $200 | Fossil fuel conversion only |
| Cobb EMC | $500 | — | General energy efficiency incentive, once per 5 years |
| Coweta-Fayette EMC | $100 | $250 | SmartChoice Home Program |
| Marietta Power | $150–$500 | $250 | Gas-to-electric conversion; $500 for bundled HVAC + water heater |
Contact your EMC directly for current program details. Rebate amounts and eligibility can change without notice.
TVA-served Georgia communities
Local power companies in parts of Georgia distribute TVA power and participate in the region-wide TVA EnergyRight program instead: $500–$800 for ducted heat pumps by SEER2 tier, $800 for mini splits, and $1,500 for geothermal, with installation required through TVA's Quality Contractor Network. If your electric bill comes from a TVA-served utility, see our complete TVA EnergyRight guide.
How programs stack in Georgia
Per GEFA's official FAQ, state rebates can be combined with utility rebates (Georgia Power HEIP or EMC programs), but not for the same single upgrade. Different upgrades within the same home can draw from different programs. HER and HEAR cannot be combined on the same upgrade either. These rebates are treated as purchase price reductions — not taxable income. With HEAR paused for new applications, the scenarios below are built on HER plus utility rebates; the HER tiers split at 80% AMI.
Above 80% AMI — ducted heat pump + insulation (HER path)
- HER whole-home rebate: $2,000 (20%+ energy savings) to $4,000 (35%+)
- Georgia Power HEIP: heat pump conversion $1,500 (electric furnace only) + Home Comfort Bundle $1,850, capped at $2,500/year combined
Realistic maximum: ~$4,500–$6,500
At or below 80% AMI — whole-home package (HER path)
- HER whole-home rebate: $10,000 (20%+ energy savings) to $16,000 (35%+)
- Georgia Power HEIP: Home Comfort Bundle $1,850, up to $2,500/year if combining measures
- Weatherization Assistance Program: free measures if income-qualified
Realistic maximum: ~$12,500–$18,500
In the HEAR pipeline — application submitted before August 14, 2026
- Approved HEAR rebates pay under the rules in effect at submission: up to $14,000 per household
- Subject to review and available funding — watch for review-team emails
- Stackable with utility rebates on different upgrades
Respond promptly to any GEFA information requests
What you'll actually pay
On a $12,000–$18,000 whole-home heat pump project, expect to pay $0–$5,500 out of pocket at or below 80% AMI, or $5,500–$13,500 above 80% AMI. Georgia has no state tax credit or state loan program to fill the gap for higher-income households.
Weatherization Assistance Program
Georgia's Weatherization Assistance Program (WAP), also administered by GEFA through local Community Action Agencies, provides free energy efficiency improvements to households earning at or below 200% of the federal poverty level. The program can include heat pump installation — GEFA received a $7.5 million DOE grant in 2024 specifically for clean energy technology including heat pumps.
Services include energy audits, insulation, air/duct sealing, and HVAC improvements at no cost to the homeowner. Waiting lists may exist due to high demand. Apply through your local Community Action Agency.
✓ Best candidates for Georgia heat pump rebates
Income-qualified households at or below 80% AMI (up to $16,000 through HER, plus free WAP measures), homeowners replacing gas or propane heat through HER's fuel-neutral whole-home path, Georgia Power customers replacing an electric furnace (HEIP's $1,500 conversion rebate) or doing bundled projects (HEIP + HER stacking), and anyone in EMC territory with an aging electric resistance system (lower bills plus EMC rebates).
Georgia's climate and heat pump performance
Georgia sits in IECC Climate Zones 2A (southern/coastal) and 3A (northern/Atlanta metro) — a mixed-humid, cooling-dominant climate where heat pumps deliver exceptional year-round performance. Cold-climate heat pumps are unnecessary for the vast majority of Georgia.
ASHRAE design temperatures
| City | Winter design (99.6%) | Summer design (0.4%) | IECC zone |
|---|---|---|---|
| Atlanta | 21.7°F | 93.7°F | 3A |
| Augusta | ~23°F | ~98°F | 3A |
| Savannah | ~27°F | ~96°F | 2A |
Atlanta's winter design temperature of 21.7°F means outdoor air drops below that level for fewer than 35 hours per year. A standard ENERGY STAR heat pump maintains strong efficiency at 25–35°F, covering well over 99% of Georgia's heating hours. The cooling season runs five to seven months, meaning high SEER2 ratings generate outsized savings.
Variable-speed (inverter-driven) heat pumps are strongly recommended for Georgia's humid climate. They run at lower speeds for longer periods, pulling more moisture from the air — critical for comfort in a state where latent humidity loads are substantial. The federal minimum for the Southeast is 14.3 SEER2 and 7.5 HSPF2 for split-system heat pumps.
Per the 2020 EIA Residential Energy Consumption Survey, Georgia homes split nearly evenly between natural gas (47%) and electricity (46%), with propane at 5%. Metro Atlanta heavily favors natural gas. Rural and coastal areas rely more on electric resistance heating and propane. If you're also considering battery storage, see our guide to home batteries in 2026.
Georgia's climate is the hidden subsidy
Heat pumps in Georgia operate near peak efficiency for the vast majority of hours, delivering both heating and cooling savings in a state where every home needs air conditioning. The payback period is shorter than in most of the country even with reduced incentives.
How to apply for Georgia heat pump rebates
Check income eligibility
Visit energyrebates.georgia.gov to determine your AMI tier. HER is open to all income levels; your tier sets the rebate amount. (HEAR is paused for new applications as of August 14, 2026.)
Find a GEFA-approved contractor
Both HEAR and HER require a contractor registered with GEFA. The approved contractor list is available on the energyrebates.georgia.gov portal. HER additionally requires a BPI-certified contractor for energy modeling.
Get a quote with eligible equipment
Your contractor will confirm ENERGY STAR certification. For HER, the contractor performs a Manual J load calculation and energy model to project the 20%+ savings the rebate requires.
Complete the project and claim rebates
HER rebates require post-installation verification. Apply for utility rebates (Georgia Power HEIP or your EMC) separately after installation — Georgia Power requires submission within 60 days. HEAR rebates for pipeline applications are applied at point of sale through the contractor once approved.
What to watch for
HEAR pause resolution
GEFA paused all new HEAR applications on August 14, 2026 while its review team works through submitted volume. Watch energyrebates.georgia.gov for reopening details — under DOE's updated guidance, any relaunched HEAR covers only upgrades from existing electric equipment.
IRA funding runway
Georgia's HEAR and HER programs are funded through September 2031 or until funds are exhausted. However, future Congressional action could modify IRA appropriations. Once funding runs out, these rebates end with no guarantee of renewal.
GEFA contractor availability
Both HEAR and HER require GEFA-approved contractors. As demand increases, scheduling may take longer. Getting on a contractor's calendar early — especially before summer cooling season — improves your timeline.
EMC program changes
EMC rebate programs are set by each cooperative's board independently. Amounts, eligibility rules, and program availability can change at any board meeting. Verify current terms with your EMC before committing to a project.
Frequently asked questions
What heat pump rebates are available in Georgia in 2026?
Georgia’s main heat pump incentives in 2026 are the IRA-funded HER whole-home program (up to $4,000 for households above 80% AMI, up to $16,000 for income-qualified households), Georgia Power’s HEIP rebates (up to $1,850 for its Home Comfort Bundle and $1,500 for an electric-furnace-to-heat-pump conversion, capped at $2,500 per customer per year), and EMC rebates ranging from $100 to $600 depending on the cooperative. The HEAR program paused new applications on August 14, 2026, and no longer covers gas-to-electric conversions under updated federal rules. Federal Section 25C and 25D tax credits expired December 31, 2025.
Can I stack HEAR, HER, and utility rebates in Georgia?
Yes, but not on the same upgrade. GEFA allows stacking HER and HEAR with utility rebates (Georgia Power HEIP or EMC rebates) as long as each program covers a different improvement, and HEAR and HER cannot be combined on the same piece of equipment. With HEAR paused for new applications since August 14, 2026, the practical stack today is HER plus a utility rebate — for example, HER for a heat pump and a utility rebate for a heat pump water heater. Households with HEAR applications submitted before the pause can still combine an approved HEAR rebate with the other programs.
Does Georgia’s climate work well for heat pumps?
Georgia is one of the best states in the country for heat pump performance. Atlanta’s winter design temperature is 21.7°F, meaning outdoor temperatures rarely drop below levels where standard heat pumps lose efficiency. Georgia’s cooling-dominant climate means high-SEER2 heat pumps deliver outsized savings across a five-to-seven-month cooling season.
Who administers Georgia’s HEAR and HER rebate programs?
The Georgia Environmental Finance Authority (GEFA) administers both the HEAR and HER programs through its Division of Energy Resources. Applications are processed through energyrebates.georgia.gov, and all projects require a GEFA-approved contractor. The helpline is (877) 348-5237.
Can I still get a HEAR rebate to replace my gas furnace with a heat pump?
No. Following updated U.S. Department of Energy guidance (Program Notice 26-2, effective May 29, 2026), GEFA stopped accepting fuel-switching HEAR projects on August 10, 2026, and paused all new HEAR applications on August 14, 2026. Applications submitted before those deadlines are still being reviewed, subject to available funding. A gas-to-heat-pump project can instead qualify for HER whole-home rebates — which are fuel-neutral and remain open. Note that Georgia Power’s HEIP heat pump conversion rebate applies only to electric-furnace replacements, though gas-heated homes can still use HEIP’s weatherization bundles, and some EMCs (such as GreyStone and Walton) offer gas-to-electric conversion rebates.
Sources
- Georgia’s Home Energy Rebates (GEFA)
- GEFA — HEAR Program Updates (pause + fuel-switching deadline)
- DOE — Program Notice 26-2 (updated HEAR guidance)
- GEFA — HEAR Program Details
- GEFA — Home Energy Rebates FAQ
- Georgia Power — Home Energy Improvement Program
- Jackson EMC — Heat Pump Rebate
- GreyStone Power — Rebate Requirements
- Sawnee EMC — Rebates and Incentives
- GEFA — Weatherization Assistance Program
- IRS 25C (expired)
Disclaimer: This page covers the main statewide, utility, and IRA heat pump incentives available to Georgia homeowners in 2026. It does not calculate savings, guarantee eligibility, or represent any incentive program. Georgia's 41 EMCs each set their own rebate terms independently; we cover the largest cooperatives but cannot list every program. We verify status regularly but programs can change without notice. Always confirm current amounts and eligibility with GEFA, Georgia Power, your EMC, and your contractor before making decisions.
See how this state compares → Heat Pump Rebates by State (2026)