Mississippi Heat Pump Rebates & Incentives (2026)
With federal tax credits expired and the state's IRA rebate programs still pending, Mississippi homeowners rely on utility rebates for heat pump savings in 2026. TVA EnergyRight offers up to $1,500 in northeast Mississippi, and Entergy Mississippi covers up to $1,100 statewide. This guide covers all major Mississippi heat pump incentives available in 2026, including Entergy Mississippi, TVA EnergyRight, Mississippi Power, and rural cooperative programs. Here's what's actually available.
Last verified: March 24, 2026
Rates and program availability may change after this date.
Mississippi
Limited / Region-Dependent
No statewide rebate program. Entergy Mississippi offers up to $1,100 for heat pumps. TVA EnergyRight provides up to $1,500 in northeast MS. Mississippi Power offers $160–$200/ton. Federal 25C/25D expired. IRA HEAR/HOMES ($104.8M) not yet launched.
Sources:
Short version
✓ TVA EnergyRight (northeast MS)
Up to $1,500 for TVA Preferred air-source heat pumps through 26+ local distributors. Up to $900 instant rebate on heat pump water heaters at participating retailers.
✓ Entergy Mississippi (central/south MS)
$500–$1,100 for ducted heat pumps depending on efficiency tier. Up to $750 for heat pump water heaters. Must use a participating trade ally contractor.
✓ Potential savings when HEAR launches
$500–$1,500 (above 150% AMI, utility only) to $9,500+ (below 80% AMI with HEAR). Full electrification packages can reach ~$17,000+ total incentives for income-qualified households.
✗ Federal tax credits expired
Both the Section 25C ($2,000 heat pump credit) and Section 25D (30% geothermal credit) ended December 31, 2025. Equipment installed in 2026 does not qualify.
⚠ IRA HEAR and HOMES programs not yet launched
Mississippi accepted $104.8 million in IRA funding for HEAR and HOMES rebates, but the Mississippi Development Authority has not opened consumer applications. HEAR could provide up to $8,000 per heat pump for households below 150% AMI. Do not delay a needed replacement waiting for these programs — utility rebates are available now.
Federal tax credits have ended
The Section 25C Energy Efficient Home Improvement Credit and Section 25D Residential Clean Energy Credit both expired on December 31, 2025. The One Big Beautiful Bill Act (signed July 4, 2025) terminated these credits for any equipment placed in service after that date. Equipment purchased in 2025 but installed in 2026 does not qualify — the IRS uses the installation completion date, not the purchase date. Full details on the federal credit expiration →
Mississippi has no state income tax credit for heat pumps and no state-level replacement for the expired federal credits. The IRA-funded HEAR and HOMES rebate programs were not repealed and remain funded through September 30, 2031 — but Mississippi has not yet launched these programs for consumers.
Home Electrification and Appliance Rebates (HEAR)
Mississippi was allocated $52,237,320 in HEAR funding under the Inflation Reduction Act. The Mississippi Development Authority (MDA), Office of Energy is the administering agency. As of March 2026, no consumer application portal has been opened and no launch date has been announced.
When launched, HEAR rebates will be available to households at or below 150% of Area Median Income (AMI). Households below 80% AMI receive 100% of costs up to item caps. Those between 80–150% AMI receive 50% of costs. Households above 150% AMI are not eligible.
| Equipment | Maximum HEAR rebate |
|---|---|
| Heat pump (HVAC) | $8,000 |
| Heat pump water heater | $1,750 |
| Electric panel upgrade | $4,000 |
| Insulation and air sealing | $1,600 |
| Electric wiring | $2,500 |
| Household cap | $14,000 |
⚠ Common mistake: waiting for HEAR to replace your failing system
If your current HVAC system is failing, do not wait for HEAR — there is no confirmed launch date. Install now using available utility rebates. If HEAR launches retroactive provisions, you may still qualify, but this is not guaranteed. A broken system costs more in emergency repairs and discomfort than the potential rebate difference.
Home Efficiency Rebates (HOMES)
Mississippi was allocated $52,543,050 in HOMES funding. Unlike HEAR, HOMES rebates are available at all income levels — but the amount depends on measured or modeled energy savings achieved by the whole-home project.
| Energy savings achieved | Standard household | ≤80% AMI household |
|---|---|---|
| 20–34% reduction | Up to $2,000 | Up to $4,000 |
| ≥35% reduction | Up to $4,000 | Up to $8,000 |
HOMES requires a pre- and post-retrofit energy assessment to verify savings. Like HEAR, this program has not launched in Mississippi. MDA's program design details — including whether measured or modeled pathway will be used — have not been published.
Utility rebate programs
Utility rebates are the only active heat pump incentives in Mississippi in 2026. Your rebate depends on which utility serves your home. Mississippi is split between three major providers: Entergy Mississippi (central and southern), TVA distributors (northeast), and Mississippi Power (southeast).
Entergy Mississippi
Entergy Mississippi serves approximately 459,000 customers across 45 counties. All HVAC rebates require installation by a participating Entergy Solutions trade ally contractor — this is not a consumer mail-in program.
Ducted split-system heat pumps
| Tier | SEER2 / HSPF2 minimum | Rebate |
|---|---|---|
| Tier 1 | ≥15.20 SEER2 and ≥7.8 HSPF2 | $500 |
| Tier 2 | ≥16.15 SEER2 and ≥8.0 HSPF2 | $750 |
| Tier 3 | ≥18.05 SEER2 and ≥8.0 HSPF2 | $1,100 |
Single-package and ductless heat pumps
| Type | Requirements | Rebate |
|---|---|---|
| Single-package Tier 1 | ≥14.30 SEER2 / ≥7.2 HSPF2 | $500 |
| Single-package Tier 2 | ≥15.20 SEER2 / ≥7.4 HSPF2 | $750 |
| Single-package Tier 3 | ≥17.10 SEER2 / ≥7.4 HSPF2 | $1,100 |
| Ductless mini-split Tier 1 | ≥16.0 SEER2 / ≥9.0 HSPF2 | $140/ton |
| Ductless mini-split Tier 2 | ≥18.0 SEER2 / ≥9.0 HSPF2 | $165/ton |
Entergy also offers up to $750 for ENERGY STAR certified heat pump water heaters through its appliance rebate program. HPWH rebates can be submitted online or by mail within 30 days of purchase — no trade ally required.
TVA EnergyRight (northeast Mississippi)
TVA serves parts of 36 Mississippi counties through 26+ local distributors — cooperatives like Central Electric Power Association and North East Mississippi EPA, and municipal utilities like Tupelo Water & Light and Oxford Utilities. All distributors use the same standardized EnergyRight rebate schedule.
| Equipment | Requirements | Rebate |
|---|---|---|
| TVA Preferred ASHP | Variable-speed, ≥15.2 SEER2, ≥8.1 HSPF2, 100% heating at 17°F | $1,500 |
| Geothermal heat pump | Replaces existing electric heat | $1,500 |
| Heat pump, 17+ SEER2 | Air source or dual fuel | $800 |
| Heat pump, 15–16.99 SEER2 | Air source or dual fuel | $500 |
| Ductless mini-split, 17+ SEER2 | — | $800 |
| Heat pump water heater | ENERGY STAR certified | Up to $900 instant |
The $1,500 TVA Preferred tier requires a variable-speed compressor (two-stage excluded), 100% rated heating capacity at 17°F without backup heat, cooling capacity no more than 125% of cooling load, a Manual J 8th Edition load calculation, and installation by a Quality Contractor Network (QCN) member. All TVA rebates require QCN installation.
The $900 HPWH instant rebate is applied at the point of sale at participating Lowe's and Home Depot locations — this is the only true point-of-sale rebate in Mississippi.
TVA Home Uplift: free upgrades for income-eligible households
TVA's Home Uplift program provides an average of $10,000 in free home energy upgrades — including HVAC replacement, insulation, and appliances — for households at or below 200% of the federal poverty level. Contact your local TVA distributor to check availability in your area.
Mississippi Power (southeast Mississippi)
Mississippi Power (a Southern Company subsidiary) serves the southeastern portion of the state. Rebates use a per-ton model and are delivered as a digital gift card or bill credit. Customers are limited to two HVAC rebates per premise every ten years.
| Equipment | Requirement | Rebate |
|---|---|---|
| Heat pump, ≥15.2 SEER | ~14.3 SEER2 equivalent | $160/ton |
| Heat pump, ≥16.15 SEER | — | $200/ton |
| Ductless heat pump, >16.15 SEER | — | $200/ton |
| Heat pump water heater | ENERGY STAR, EF ≥2.0 | $350 |
A typical 3-ton, 16+ SEER system yields a $600 rebate. The maximum for a 5-ton system is roughly $1,000.
Rural electric cooperatives
Cooperatives in southern and western Mississippi operate under the Comfort Advantage brand promoted by Cooperative Energy. Rebate amounts vary by cooperative and are generally more modest than Entergy or TVA programs.
| Cooperative | Heat pump rebate |
|---|---|
| Singing River Electric | $300–$500 |
| Coast Electric | $150–$500 |
| Pearl River Valley EPA | Up to $500 |
| Southern Pine Electric | $300–$500 |
| Delta, Southwest MS, Twin County, others | No documented rebate programs |
How programs stack
In 2026, utility rebates are the only active incentive. When HEAR and HOMES launch, Mississippi homeowners may be able to stack utility rebates with IRA rebates — but final stacking rules depend on MDA's program design, which has not been finalized. The scenarios below show current utility-only stacking and projected stacking after IRA programs launch.
Current stacking (utility rebates only)
Above 150% AMI — ducted heat pump + HPWH (Entergy territory)
- Entergy Tier 3 ducted HP: $1,100
- Entergy HPWH: $750
Realistic maximum: ~$1,850
Above 150% AMI — TVA Preferred HP + HPWH (TVA territory)
- TVA Preferred ASHP: $1,500
- TVA HPWH instant rebate: $900
Realistic maximum: ~$2,400
Projected stacking (when HEAR launches)
80–150% AMI — ducted HP + HPWH (TVA territory)
- TVA Preferred ASHP: $1,500
- TVA HPWH instant rebate: $900
- HEAR HP (50% of cost, up to): $4,000
- HEAR HPWH (50% of cost, up to): $875
Projected maximum: ~$7,275
Below 80% AMI — full electrification (TVA territory)
- TVA Preferred ASHP: $1,500
- TVA HPWH instant rebate: $900
- HEAR HP (100% of cost, up to): $8,000
- HEAR HPWH (100% of cost, up to): $1,750
- HEAR panel upgrade (up to): $4,000
Projected maximum: ~$16,150
What you'll actually pay
For a typical $12,000–$18,000 ducted heat pump installation: with utility rebates only, expect to pay $10,500–$16,500 out of pocket. If HEAR launches and you qualify at the 80% AMI tier, out-of-pocket costs could drop to $2,000–$6,000. Mississippi Power territory customers receive the smallest utility rebates and will benefit the most when HEAR launches.
Mississippi has no state tax credit, no state loan program, and no PACE financing. Stacking is limited to utility rebates plus future IRA programs.
Weatherization Assistance Program
The Mississippi Weatherization Assistance Program (WAP) is administered by the Mississippi Department of Human Services (MDHS) through six Community Action Agencies covering all 82 counties. WAP provides free weatherization services — including insulation, air sealing, and furnace repair or replacement — at no cost to eligible households.
Eligibility requires household income at or below 200% of the federal poverty level ($64,300 for a family of four in 2026). Priority goes to seniors, disabled individuals, households with young children, and those with high energy burden. Applications are submitted through the Access MS portal at access.ms.gov.
✓ Best candidates for Mississippi heat pump upgrades
Homeowners replacing electric resistance heating (baseboard, wall heaters, or portable space heaters) — a heat pump can cut heating costs by 50% or more. Propane-heated homes in rural areas where propane prices are volatile. Income-qualifying households in TVA territory who can combine $1,500 TVA rebate with future HEAR rebates. Mississippi Power customers who should lock in current per-ton rebates before any program changes.
Climate context
Mississippi sits in IECC Climate Zones 2A (southern) and 3A (northern) — both classified as Hot-Humid. Standard air-source heat pumps operate efficiently year-round across the entire state. Cold-climate rated heat pumps are unnecessary and may cost more without meaningful benefit. A properly sized system should rarely need backup electric resistance heat, even in Tupelo's coldest nights.
| City | 99% heating design temp | 1% cooling design temp | Annual HDD (base 65°F) | Annual CDD (base 65°F) |
|---|---|---|---|---|
| Jackson | 23–26°F | ~95°F | ~2,400 | ~2,400 |
| Gulfport | 29–32°F | ~93°F | ~1,700 | ~2,800 |
| Tupelo | 19–22°F | ~95°F | ~2,900 | ~2,200 |
| Hattiesburg | 25–28°F | ~95°F | ~2,200 | ~2,500 |
Approximately 56% of Mississippi homes already heat with electricity — many using inefficient electric resistance heating. Another 32% use natural gas and roughly 10% use propane (double the national rate). Upgrading from electric resistance to a heat pump can cut heating energy use by 50% or more. Propane-heated homes represent the highest per-household savings opportunity due to volatile propane prices.
For homeowners considering pairing a heat pump with battery storage, see our guide to home batteries in 2026.
How to apply
The process depends on your utility. Here's the typical path for the two largest programs.
Entergy Mississippi
Find a participating trade ally
Search the Entergy Solutions contractor directory at entergymississippi.com. Only installations by approved trade allies qualify for HVAC rebates.
Get a qualifying system installed
Your trade ally will verify the system meets efficiency tier requirements (SEER2/HSPF2 minimums) and submit the rebate paperwork.
Rebate is applied
The trade ally handles submission. HPWH rebates can be submitted directly by the homeowner online or by mail within 30 days of purchase.
TVA EnergyRight
Find a Quality Contractor Network (QCN) member
Search at energyright.com/find-a-contractor. All TVA HVAC rebates require QCN installation.
Get a Manual J load calculation
Required for TVA Preferred tier ($1,500). The QCN contractor will perform this as part of the installation process.
Contractor submits rebate
The QCN contractor submits documentation to your local power company. For HPWHs, purchase at a participating Lowe's or Home Depot for the instant $900 rebate at checkout.
What to watch
MDA HEAR/HOMES launch date
The Mississippi Development Authority has not announced when consumer applications will open for the state's $104.8 million in IRA rebate funding. This is the single largest pending incentive for Mississippi homeowners. Monitor mississippi.org/community-resources/office-of-energy/ for updates.
IRA funding runway
HEAR and HOMES funding is available through September 30, 2031 or until exhausted. However, federal funding freezes and political uncertainty could affect disbursement timing. States that launched early (Wisconsin, North Carolina) are already distributing rebates.
Entergy Mississippi rate cases
Entergy's rebate programs are funded through ratepayer charges approved by the Mississippi Public Service Commission. Program funding levels and rebate amounts can change with each rate case cycle.
TVA rebate schedule updates
TVA periodically updates its EnergyRight rebate schedule. The current schedule (v26) has been in effect since early 2024. Check energyright.com for any changes to amounts or efficiency requirements.
Frequently asked questions
What heat pump rebates are available in Mississippi in 2026?
Mississippi heat pump rebates come from three utility providers. TVA EnergyRight offers up to $1,500 for qualifying air-source heat pumps in northeast Mississippi. Entergy Mississippi offers $500–$1,100 depending on efficiency tier. Mississippi Power offers $160–$200 per ton. Federal tax credits (25C and 25D) expired December 31, 2025. Mississippi’s IRA-funded HEAR and HOMES rebates have not yet launched.
Can I stack utility rebates with HEAR in Mississippi?
When Mississippi’s HEAR program launches, utility rebates and HEAR rebates are expected to be stackable — but final rules depend on the Mississippi Development Authority’s program design. HEAR could add up to $8,000 for households at or below 150% of Area Median Income. HOMES rebates of up to $4,000–$8,000 may also be available. Stacking details have not been finalized.
Do I need a cold-climate heat pump in Mississippi?
No. Mississippi sits in IECC Climate Zones 2A and 3A (Hot-Humid), with winter design temperatures ranging from about 19°F in Tupelo to 32°F on the Gulf Coast. Standard air-source heat pumps operate efficiently year-round across the entire state. Cold-climate rated systems are unnecessary and may cost more without meaningful benefit.
Which Mississippi utility offers the highest heat pump rebate?
TVA EnergyRight offers the highest rebate at $1,500 for TVA Preferred air-source heat pumps — available through 26+ local distributors in northeast Mississippi including Tupelo Water & Light, Oxford Utilities, and Central Electric Power Association. The system must use a variable-speed compressor and produce 100% rated heating at 17°F. Entergy Mississippi’s top tier is $1,100 for systems meeting 18.05+ SEER2.
When will Mississippi’s IRA HEAR rebates launch?
As of March 2026, no launch date has been announced. The Mississippi Development Authority accepted the state’s $104.8 million IRA allocation for HOMES and HEAR programs but has not opened a consumer application portal. Monitor the MDA Office of Energy page at mississippi.org for updates.
Sources
- Entergy Mississippi — Heating & Cooling Rebates
- Entergy Mississippi — Appliance Rebates (HPWH)
- TVA EnergyRight — Residential Rebates
- TVA EnergyRight — Heat Pump Water Heaters
- TVA EnergyRight — Home Uplift
- Mississippi Power — Rebates & Incentives
- Mississippi Development Authority — Office of Energy
- MDHS — Weatherization Assistance Program
- IRS — 25C/25D Termination FAQ
Disclaimer: This page covers the main statewide, utility, and IRA heat pump incentives available to Mississippi homeowners in 2026. It does not calculate savings, guarantee eligibility, or represent any incentive program. Mississippi has three distinct utility territories (Entergy, TVA, Mississippi Power) plus rural cooperatives — rebate availability depends on which provider serves your address. We verify status regularly but programs can change without notice. Always confirm current amounts and eligibility with your utility provider and your contractor before making decisions.
See how this state compares → Heat Pump Rebates by State (2026)