Ohio Heat Pump Rebates & Incentives (2026)
Most Ohio homeowners will see little to no direct rebates until federal IRA programs launch. Federal tax credits expired, Ohio's $249 million in IRA rebate funding remains pending, and utility rebate programs were dismantled by House Bill 6 in 2019. The strongest active incentive is the ECO-Link loan program, which provides a 3% interest rate reduction on qualifying home improvement loans up to $50,000. For most homeowners, this is one of the weakest incentive environments in the country right now. This guide covers all major Ohio heat pump incentives available in 2026, including HEAR, HOMES, AEP Ohio HELP, ECO-Link, and HWAP. Here's what's actually available.
Last verified: March 23, 2026
Rates and program availability may change after this date.
Ohio
Limited / Region-Dependent
Ohio has almost no heat pump rebates in 2026. Federal credits expired, utility programs were dismantled by HB 6, and the state’s $249M in IRA rebates (HEAR/HOMES) have not launched. ECO-Link offers 3% loan rate reductions up to $50,000. AEP Ohio’s HELP covers low-income households.
The short version
✓ HEAR rebates: up to $8,000 for heat pumps
Ohio's Home Electrification and Appliance Rebates (HEAR) program will cover up to $8,000 for heat pumps for households below 150% of Area Median Income (AMI). The program has not yet launched.
✓ ECO-Link: 3% rate reduction on loans up to $50,000
The ECO-Link program from the Ohio Treasurer provides a 3% interest rate reduction on qualifying home improvement loans, including heat pump installations. This is the strongest active incentive available to all Ohio homeowners.
✓ Potential savings: $500 to $8,000+
$500–$750 (above 150% AMI via utility rebates) to $8,000+ (below 80% AMI via HEAR when launched). Full electrification packages can reach ~$16,000 total incentives for income-qualified households.
✗ Federal tax credits expired
Section 25C ($2,000/year for heat pumps) and Section 25D (30% for geothermal) both ended December 31, 2025. No federal tax credit is available for heat pumps installed in 2026.
⚠ Ohio's IRA programs have not launched yet
Ohio was awarded $249 million in HEAR and HOMES funding, but neither program is accepting applications as of March 2026. Homeowners who can wait may benefit from monitoring the Ohio Department of Development for launch announcements. Contractors claiming specific HEAR/HOMES rebate amounts are premature.
Federal tax credits: both expired
Section 25C (Energy Efficient Home Improvement Credit) and Section 25D (Residential Clean Energy Credit) both terminated for any property placed in service after December 31, 2025. The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, accelerated the sunset of both credits. A heat pump purchased in 2025 but installed in January 2026 does not qualify — the installation completion date is the controlling event. For more details, see our federal heat pump tax credit explainer.
Section 25C previously provided 30% of project costs up to $2,000 per year for heat pumps and heat pump water heaters. Section 25D provided 30% with no dollar cap for geothermal heat pump systems. These were the most broadly accessible incentives available to Ohio homeowners regardless of income.
Homeowners who completed qualifying installations on or before December 31, 2025 can still claim the credit on their 2025 tax return using IRS Form 5695. For Section 25D, unused credit amounts from 2025 installations may be carried forward to future tax years.
Home Electrification and Appliance Rebates (HEAR) — pending
Ohio was awarded approximately $124.2 million in HEAR funding under the Inflation Reduction Act. The program is administered by the Ohio Department of Development. As of March 2026, the program has not launched. HEAR provides point-of-sale rebates exclusively for households below 150% of Area Median Income (AMI), verified at the county level using HUD income data.
Expected HEAR rebate amounts
| Measure | Maximum rebate |
|---|---|
| Heat pump (HVAC) | $8,000 |
| Heat pump water heater | $1,750 |
| Electrical panel upgrade | $4,000 |
| Electric wiring upgrade | $2,500 |
| Insulation, air sealing, ventilation | $1,600 |
| Electric stove/cooktop | $840 |
| Electric clothes dryer | $840 |
| Per-household cap | $14,000 |
For households below 80% AMI: 100% of project costs covered up to per-item caps. For households at 80–150% AMI: 50% of project costs covered up to per-item caps. Households above 150% AMI are not eligible for HEAR.
⚠ Common mistake: assuming HEAR is available now
Several Ohio HVAC contractor websites promote HEAR rebate amounts as if they are currently available. Ohio's HEAR program has not launched. Do not rely on contractor marketing — verify directly with the Ohio Department of Development at development.ohio.gov before making purchasing decisions based on expected rebates.
Home Efficiency Rebates (HOMES) — pending
Ohio was also awarded approximately $124.6 million in HOMES funding. Unlike HEAR, HOMES is available to all income levels based on demonstrated whole-home energy savings via modeling or measurement. As of March 2026, this program has not launched either.
Expected HOMES rebate amounts
| Energy savings achieved | Below 80% AMI | 80–150% AMI | Above 150% AMI |
|---|---|---|---|
| 20–34% reduction | Up to $4,000 | Up to $2,000 | Up to $2,000 |
| 35%+ reduction | Up to $8,000 | Up to $4,000 | Up to $4,000 |
HOMES requires a whole-home energy audit to document savings. This makes it particularly relevant for Ohio homeowners combining a heat pump installation with insulation, air sealing, or window upgrades — a common approach in Ohio's older housing stock.
Utility programs: mostly dismantled by House Bill 6
Ohio House Bill 6, enacted October 21, 2019, dismantled mandated energy efficiency programs for all Ohio electric distribution utilities, ending them by December 31, 2020. A bipartisan bill (HB 79) to reauthorize voluntary programs died in the Ohio Senate in December 2024 without a vote. Most Ohio utilities have no active general-population heat pump rebate programs.
Ohio's unique policy situation
Ohio is one of very few states where utility efficiency programs were eliminated by state law. The HB 6 scandal — which led to the imprisonment of the Ohio House Speaker — also removed renewable portfolio standards. This makes Ohio's incentive landscape unusually thin compared to neighboring states like Pennsylvania and Michigan, where utilities offer $500–$1,000+ in heat pump rebates.
AEP Ohio — HELP program (income-qualified only)
AEP Ohio operates the High Efficiency for Low-Income Program (HELP), the only active utility heat pump program in Ohio with meaningful incentives. This is not a standard rebate open to all customers.
| Detail | HELP program |
|---|---|
| Eligibility | AEP Ohio residential customer, household income ≤300% FPL |
| Below 200% FPL tier | Products/services at no cost |
| 200–300% FPL tier | Products/services at low cost (~$2,000–$3,000) |
| ASHP requirements | ≥16 SEER2, ≥8.5 HSPF2, below 65,000 Btu/h |
| Application | Through authorized contractors at aepohhelp.com |
Duke Energy Ohio — no active program
Duke Energy's Ohio service territory residential rebate programs were discontinued following HB 6. Duke's national website displays HVAC rebate pages, but these serve other jurisdictions (Carolinas, Florida, Indiana) — not Ohio. Duke serves approximately 730,000 electric customers in southwestern Ohio.
AES Ohio (Dayton area) — no active program
AES Ohio (formerly Dayton Power & Light) ended all energy efficiency programs by December 31, 2020 under HB 6. AES has a limited program providing smart thermostat rebates and weatherization services for low- and middle-income households, but no heat pump or heat pump water heater rebates.
FirstEnergy Ohio — previous program expired
FirstEnergy's Ohio subsidiaries (Ohio Edison, The Illuminating Company, Toledo Edison) operated a residential products rebate program from June 2023 to May 2024 that offered $500 heat pump water heater rebates but did not include air-source heat pump rebates. As of March 2026, only a smart thermostat rebate and the Community Connections program (free energy services for customers ≤200% FPG) remain active. FirstEnergy filed a sixth Electric Security Plan (ESP6) with PUCO in January 2025 proposing new efficiency programs, but ESP6 has not yet been approved.
Natural gas utilities — no heat pump programs
Columbia Gas of Ohio (NiSource) and Enbridge Gas Ohio (formerly Dominion Energy Ohio, sold to Enbridge in March 2024) operate only income-eligible weatherization programs. As gas utilities, neither has offered electric heat pump rebates. Columbia Gas's WarmChoice program provides free weatherization for households ≤200% FPG.
Cincinnati area: local resources
The Cincinnati area has the most developed local heat pump ecosystem in Ohio. Electrify Cincy, administered by the City of Cincinnati, provides a network of city-certified heat pump contractors and education resources. The Greater Cincinnati Energy Alliance (GCEA) administers the City of Cincinnati Residential Rebate Program — up to $1,500 (50% of costs, minimum $1,000 project) for energy efficiency improvements including HVAC upgrades. GCEA covers Hamilton, Butler, Warren, and Clermont counties. No other major Ohio city operates a direct heat pump incentive program.
ECO-Link and state financing
The ECO-Link (Energy Conservation for Ohioans Linked Deposit Program), administered by the Ohio Treasurer of State, is the strongest currently available statewide incentive. It is not a rebate — it is a loan interest rate reduction that lowers the cost of financing a heat pump installation.
| Detail | ECO-Link |
|---|---|
| Rate reduction | Up to 3% off market rate |
| Maximum loan | $50,000 |
| Term | 5 years (7 years for home equity loans over $25,000) |
| Eligibility | Ohio primary residence owner, ENERGY STAR products, certified contractor |
| Eligible equipment | ASHP, geothermal, HPWH, insulation, windows, solar |
| Application | Through participating banks at tos.ohio.gov |
✓ Best candidates for ECO-Link
Homeowners above 150% AMI who are not eligible for HEAR. A 3% rate reduction on a $15,000 heat pump loan saves approximately $1,200–$1,400 in interest over 5 years. Combined with a utility rebate of $500–$750 (where available), this is the primary incentive path for middle- and upper-income Ohio homeowners in 2026.
How programs stack in Ohio
Federal rules permit combining HOMES, HEAR, and utility rebates on the same project, but HOMES and HEAR cannot both be applied to the same measure. They can be braided across different measures in a single project. Total stacked incentives cannot exceed total project cost. The stacking scenarios below assume eventual HEAR/HOMES availability.
Above 150% AMI — ducted heat pump system ($15,000 installed)
- HEAR: $0 (not eligible)
- HOMES (35%+ savings): up to $4,000
- Section 25C: $0 (expired)
- Utility rebate (best case): $500–$750
- ECO-Link: 3% rate reduction on loan (not a rebate)
Realistic maximum: ~$4,500–$4,750
80–150% AMI — ducted heat pump system ($15,000 installed)
- HEAR (50% of costs): up to $7,500
- HOMES (separate weatherization, 35%+ savings): up to $4,000
- Section 25C: $0 (expired)
- Utility rebate: $500–$750
Realistic maximum (HP only): ~$8,000–$8,250
Below 80% AMI — ducted heat pump system ($15,000 installed)
- HEAR (100% of costs): up to $8,000
- HOMES (separate weatherization, 35%+ savings): up to $8,000
- AEP Ohio HELP (if applicable): $2,000–$3,000 cost reduction
- HWAP (if qualified): free system replacement
Realistic maximum: near-zero out of pocket
What you'll actually pay
For a typical $15,000 ducted heat pump installation: above-150% AMI homeowners should expect $10,250–$14,500 out of pocket depending on whether HOMES launches and utility rebates are available. Low-income homeowners (below 80% AMI) have a path to near-zero cost through HEAR + HWAP + utility programs, but only after HEAR launches. Until then, most Ohio homeowners pay full price minus financing savings from ECO-Link.
Ohio has no state tax credit for heat pumps. The stacking scenarios above do not include potential manufacturer rebates, which vary by brand and change frequently.
Ohio Home Weatherization Assistance Program (HWAP)
HWAP provides free weatherization services — including potential heating system replacement — for households at or below 200% of the Federal Poverty Guidelines (e.g., $64,300 for a family of four in 2025). The program is administered by the Ohio Department of Development through 35 Community Action Agencies across all 88 Ohio counties.
HWAP can include heat pump installation if an energy audit determines it is the most cost-effective solution. Since 1977, the program has weatherized over 304,000 Ohio homes, with average energy bill reductions of 20–30%. The program is active year-round but has extensive waiting lists.
Apply at energyhelp.ohio.gov or call 1-800-282-0880 to find your local Community Action Agency.
Ohio climate and heat pump performance
Ohio sits entirely in IECC Climate Zone 5A (Cold-Moist). ASHRAE heating design temperatures confirm the need for cold-climate-rated equipment across the state. Approximately 64% of Ohio homes heat with natural gas, meaning most heat pump installations displace gas furnaces — a fuel-switching scenario where incentives are especially important for driving adoption.
| City | 99.6% design temp | Annual HDD (base 65°F) |
|---|---|---|
| Toledo | -1.8°F | ~6,500 |
| Cleveland | 1.0°F | ~6,150 |
| Akron | 0.1°F | ~5,970 |
| Columbus | 1.4°F | ~5,660 |
| Dayton | ~0°F | ~5,620 |
| Cincinnati | 5.1°F | ~4,870 |
The ENERGY STAR Cold Climate Heat Pump specification requires ≥15.2 SEER2, ≥8.1 HSPF2, a COP ≥1.75 at 5°F, and heating capacity at 5°F must be ≥70% of rated capacity at 47°F. These specifications are well-matched to Ohio's climate. For northern Ohio cities (Toledo, Cleveland, Akron), cold-climate-rated equipment is essential rather than optional.
Ohio homeowners considering a heat pump paired with battery storage can review our guide to home batteries for current economics and incentive details.
How to apply for Ohio incentives
With federal credits gone and HEAR/HOMES pending, the application process in Ohio currently centers on ECO-Link financing and income-qualified programs.
Check your AMI bracket
Use HUD income limits for your Ohio county to determine whether you fall below 80%, between 80–150%, or above 150% of Area Median Income. This determines your eligibility for HEAR (when launched), HOMES tier, and HELP.
Apply for ECO-Link pre-approval
Contact a participating bank listed at tos.ohio.gov to apply for an ECO-Link loan with the 3% interest rate reduction. Have your contractor provide an ENERGY STAR equipment specification and project estimate.
Get a home energy audit
A whole-home energy audit establishes a baseline for HOMES program eligibility (which requires documented energy savings of 20%+ or 35%+). This positions you to claim HOMES rebates as soon as the program launches.
Monitor HEAR/HOMES launch
Check the Ohio Department of Development at development.ohio.gov and energyhelp.ohio.gov for official launch announcements. If you can delay installation, waiting for HEAR could save up to $8,000 for income-qualified households.
What to watch for in Ohio
IRA funding runway
IRA funding for HEAR and HOMES remains authorized through September 30, 2031 or until depleted. The OBBBA did not terminate these programs. However, future congressional action could modify or rescind remaining funds. Ohio's $249 million allocation is secure for now, but the political environment around IRA spending remains volatile.
HEAR/HOMES launch timing
The Ohio Department of Development received DOE approval but has not announced a launch date. Industry sources expected launch sometime in 2026. When the programs go live, demand will likely be high — get your energy audit and contractor quotes prepared in advance.
FirstEnergy ESP6 proceedings
FirstEnergy filed its sixth Electric Security Plan with PUCO in January 2025, proposing new residential efficiency programs for Ohio Edison, The Illuminating Company, and Toledo Edison customers. If approved, this could restore utility rebates for northeastern Ohio homeowners. Monitor PUCO docket proceedings for updates.
State legislative action on efficiency mandates
HB 79, which would have reauthorized voluntary utility efficiency programs, died in December 2024. Similar legislation could be reintroduced in the current General Assembly. If passed, it would allow Ohio utilities to voluntarily offer residential rebate programs again.
Frequently asked questions
What heat pump rebates are available in Ohio in 2026?
Ohio has very limited heat pump rebates in 2026. Federal tax credits (Sections 25C and 25D) expired December 31, 2025. The state’s $249 million IRA rebate programs (HEAR and HOMES) have not yet launched. Most utility rebate programs were dismantled by Ohio House Bill 6 in 2019. The strongest currently available incentives are the ECO-Link loan program (3% interest rate reduction on up to $50,000), AEP Ohio’s income-qualified HELP program, and the statewide HWAP weatherization program for low-income households.
Can I stack HEAR, HOMES, and utility rebates in Ohio?
Federal rules permit stacking HOMES, HEAR, and utility rebates on the same project, but HEAR and HOMES cannot both be applied to the same measure. They can be braided across different measures in one project. For example, HEAR could cover the heat pump while HOMES covers insulation. Total stacked incentives cannot exceed total project cost. However, Ohio’s HEAR and HOMES programs have not yet launched as of March 2026.
Why don’t Ohio utilities offer heat pump rebates?
Ohio House Bill 6, enacted in 2019, dismantled mandated energy efficiency programs for all Ohio electric distribution utilities, ending them by December 31, 2020. This eliminated the framework for residential rebate programs at AEP Ohio, Duke Energy Ohio, AES Ohio, and FirstEnergy’s Ohio subsidiaries. A bipartisan bill to reauthorize voluntary programs died in the Ohio Senate in December 2024. AEP Ohio’s HELP program (income-qualified only) is the main surviving utility incentive.
When will Ohio’s IRA rebate programs (HEAR and HOMES) launch?
Ohio was awarded approximately $249 million in IRA rebate funding. The Ohio Department of Development designed the programs and received DOE approval, but has not announced a firm launch date. Industry sources expected launch sometime in 2026. IRA funding for these programs remains authorized through September 30, 2031. Monitor development.ohio.gov for official launch announcements.
Do cold-climate heat pumps work well in Ohio?
Yes. Ohio is in IECC Climate Zone 5A with ASHRAE heating design temperatures ranging from about -2°F in Toledo to 5°F in Cincinnati. Modern cold-climate heat pumps rated to ENERGY STAR Cold Climate specifications maintain at least 70% of rated heating capacity at 5°F and are well-suited for Ohio winters. For northern Ohio cities like Toledo and Cleveland, cold-climate-rated equipment is essential rather than optional.
Is it worth installing a heat pump in Ohio in 2026?
It depends on your income bracket and timing. Low-income homeowners (below 80% AMI) have the strongest path through HWAP and the upcoming HEAR program, which could cover the full cost. Middle-income homeowners (80–150% AMI) should consider waiting for HEAR to launch, which would cover 50% of costs up to $8,000. Above-150% AMI homeowners face the thinnest incentive stack — mostly ECO-Link financing savings and potential HOMES rebates up to $4,000. If your furnace is failing and you cannot wait, ECO-Link plus a cold-climate heat pump is a sound investment for long-term energy savings. If you can wait 6–12 months, the HEAR/HOMES launch could significantly reduce your out-of-pocket cost.
Disclaimer: This page covers the main statewide, utility, and IRA heat pump incentives available to Ohio homeowners in 2026. It does not calculate savings, guarantee eligibility, or represent any incentive program. Ohio's HEAR and HOMES programs have not launched as of March 2026, and expected rebate amounts may change when programs are finalized. We verify status regularly but programs can change without notice. Always confirm current amounts and eligibility with the Ohio Department of Development, your utility, and your contractor before making decisions.
See how this state compares → Heat Pump Rebates by State (2026)