Wisconsin Heat Pump Rebates & Incentives (2026)
Federal tax credits are gone, but Wisconsin's incentive picture is stronger than most states. Focus on Energy provides $400–$900 in instant discounts statewide, and the IRA-funded HEAR program covers up to $8,000 for income-qualifying households. Wisconsin was the first state to launch the HOMES program and has $149 million in federal funding still flowing. This guide covers all major Wisconsin heat pump incentives available in 2026, including Focus on Energy, HEAR, and HOMES programs. Here's what's actually available.
Last verified: March 22, 2026
Rates and program availability may change after this date.
Wisconsin
Open
Focus on Energy offers $400–$900 instant discounts for air-source heat pumps statewide. IRA-funded HEAR rebates cover up to $8,000 for income-qualifying households (below 150% AMI). HOMES rebates up to $10,000 are available at all income levels for whole-home projects. Federal tax credits expired December 31, 2025. Wisconsin was the first state to launch the HOMES program.
The short version
✓ HEAR rebates (income-qualified)
Up to $8,000 for heat pumps. Below 80% AMI = 100% of costs covered. 80–150% AMI = 50% of costs. Max $14,000 total per household.
✓ Focus on Energy (all incomes)
$400–$900 instant discounts for air-source heat pumps. No application required when using a participating Trade Ally contractor. Stacks with HEAR/HOMES.
✓ Total potential savings
$3,700 (above 150% AMI) to $9,250+ (below 80% AMI with propane replacement). Full electrification packages can reach ~$15,250 total incentives.
✗ Federal tax credits
Both 25C ($2,000 heat pump) and 25D (geothermal) expired December 31, 2025. No replacement has been enacted.
⚠ HOMES vs HEAR — choose carefully
Cannot stack on the same upgrade. If you're below 150% AMI, HEAR is usually the better option for heat pumps. HOMES may be better for whole-home projects targeting 35%+ energy reduction.
Federal tax credits are gone
The One Big Beautiful Bill (Public Law 119-21), signed July 4, 2025, terminated both major residential energy tax credits years ahead of schedule. Section 25C had provided 30% of costs up to $2,000/year for heat pumps. Section 25D covered 30% of geothermal and solar costs with no annual cap. Both applied only to property placed in service before January 1, 2026. A homeowner who purchased a heat pump in 2025 but had it installed in January 2026 cannot claim either credit.
The one exception: taxpayers who completed qualifying installations by December 31, 2025, but whose 25D credit exceeded their tax liability can carry forward unused credits. No extension of either credit has been enacted or proposed as of March 2026.
HEAR: up to $8,000 for heat pumps (income-qualified)
The Home Electrification and Appliance Rebates program launched in Wisconsin in December 2024 and provides point-of-sale rebates for electrification upgrades. Focus on Energy administers the program on behalf of the Public Service Commission.
Income eligibility
| Household income | Coverage | Heat pump max |
|---|---|---|
| Below 80% AMI | 100% of project costs | $8,000 |
| 80–150% AMI | 50% of project costs | $8,000 |
| Above 150% AMI | Not eligible | — |
HEAR equipment caps
| Equipment | Max rebate |
|---|---|
| ENERGY STAR electric heat pump (space heating/cooling) | $8,000 |
| Heat pump water heater | $1,750 |
| Electrical panel upgrade | $4,000 |
| Electrical wiring | $2,500 |
The maximum combined HEAR rebate per household is $14,000. Heat pump installations must use an IRA Registered Contractor. Store-purchased heat pump water heaters also qualify.
HOMES: whole-home approach, open to all incomes
The Home Owner Managing Energy Savings program launched in Wisconsin in August 2024 — making Wisconsin the first state in the nation to go live. HOMES requires a professional energy assessment and pays rebates based on projected energy reduction.
| Energy reduction | ≤80% AMI | 80–150% AMI | >150% AMI |
|---|---|---|---|
| 20–35% savings | Up to $5,000 | Up to $2,000 | Up to $1,500 |
| 35%+ savings | Up to $10,000 | Up to $4,000 | Up to $3,000 |
⚠ Common mistake
Many homeowners default to HOMES when HEAR would cover more of the project cost. If your household income is below 150% AMI and you're primarily installing a heat pump, HEAR is usually the better option — it offers up to $8,000 for the heat pump alone without requiring a whole-home energy assessment. Reserve HOMES for comprehensive projects targeting 35%+ energy reduction.
Focus on Energy: $400–$900 instant discounts statewide
Focus on Energy is Wisconsin's statewide energy efficiency program funded by utility ratepayers. Every major investor-owned utility — We Energies, Alliant Energy, Madison Gas and Electric, Wisconsin Public Service, and Xcel Energy Wisconsin — participates exclusively through Focus on Energy. These are instant discounts applied at the distributor level — no application required when using a participating Trade Ally contractor.
Air-source heat pump tiers (ducted and ductless)
| Tier | Min SEER2 | Min HSPF2 | Standard | Income-qualified |
|---|---|---|---|---|
| Tier 1 | 15.2 | 8.1 | $400 | $600 |
| Tier 2 | 15.2 | 8.5 | $500 | $700 |
| Tier 3 | 16.0 | 9.0 | $600 | $800 |
| Tier 4 | 16.0 | 10.0 | $700 | $900 |
A propane replacement bonus applies when switching from propane: $100–$150 extra for standard households, $300–$350 for income-qualified, depending on tier. The maximum Focus on Energy instant discount for a Tier 4 income-qualified propane replacement is $1,250.
Heat pump water heaters
Heat pump water heaters with UEF ≥ 3.3 and capacity under 120 gallons receive a minimum $300 instant discount through participating distributors.
Geothermal heat pumps
Geothermal systems receive a mail-in rebate of $1,000 (with natural gas service) or $750 (without gas service). ENERGY STAR certification required with COP ≥ 3.1–3.6 and EER ≥ 16.0–17.1 depending on system type.
Equipment requirements
Focus on Energy does not impose specific refrigerant requirements — no R-410A exclusion or low-GWP mandate. The program uses its own four-tier structure rather than CEE tiers. While cold-climate certification is not explicitly required, Tier 4 (HSPF2 ≥ 10.0) effectively selects for cold-climate models. Equipment must replace existing systems, be installed in existing homes by licensed contractors, and be purchased new. Income-qualified applicants must receive confirmation before installation — retroactive income-qualified discounts are not available.
Utility programs: one system, uniform rebates, a few exceptions
We Energies (~1.1 million electric customers, Milwaukee area), Alliant Energy (south-central and western Wisconsin), Madison Gas and Electric (Madison area), Wisconsin Public Service (northeastern Wisconsin including Green Bay), and Xcel Energy (western Wisconsin around Eau Claire) all participate exclusively through Focus on Energy. None offers utility-specific heat pump rebates beyond the statewide program. All five offer Time-of-Use rates that heat pump owners can leverage, but none has a dedicated heat pump electric rate.
Cross-border disparity: Xcel Energy
Wisconsin Xcel customers receive significantly lower incentives than Minnesota customers under the same utility. In Minnesota and Colorado, Xcel offers up to $2,250 per ton through its Clean Heat Plan. Wisconsin Xcel customers receive only the standard Focus on Energy amounts ($400–$900) — a rare cross-border disparity worth noting for western Wisconsin households near the Minnesota line.
Rural electric cooperatives: the hidden advantage
Many Wisconsin rural electric cooperatives offer their own heat pump rebates on top of Focus on Energy, making co-op members potentially eligible for the most generous combined incentives in the state. Co-ops with confirmed independent heat pump rebate programs include Barron Electric, Bayfield Electric, Chippewa Valley Electric, Clark Electric, Dunn Energy, Jackson Electric, Jump River Electric, Polk-Burnett Electric, Price Electric, Scenic Rivers Energy, St. Croix Electric, and Taylor Electric. Several also offer dual-fuel and load management programs with reduced electric rates for heat pump heating — particularly valuable for members who commonly heat with propane.
Local programs
Milwaukee: Me2 low-interest loan
Milwaukee offers the Me2 program — not a rebate but a low-interest loan of up to $20,000 at rates as low as 4.5% fixed for up to 15 years through Summit Credit Union. Available to single-family and owner-occupied rental properties (up to 3 units) within city limits. 80% of the loan must fund primary efficiency projects including heat pump installations. Me2 can be combined with Focus on Energy rebates and HEAR.
Madison and Green Bay
Neither Madison nor Green Bay offers city-funded heat pump rebates. Madison's MadiSUN program covers solar only. Green Bay runs the Energize Green Bay campaign connecting residents to Focus on Energy and IRA programs. No county-level heat pump rebate programs exist in the state.
How programs stack: maximum realistic incentives
Focus on Energy rebates, HEAR rebates, and HOMES rebates can all stack — this is explicitly confirmed by Focus on Energy. The key constraint: HOMES and HEAR cannot both cover the same specific upgrade.
Above 150% AMI — Tier 4 ducted ASHP
- Focus on Energy instant discount: $700
- HOMES rebate (≥35% savings): up to $3,000
- HEAR: not eligible
Realistic maximum: ~$3,700
80–150% AMI — Tier 4 ducted ASHP
- Focus on Energy instant discount: $700
- HEAR heat pump rebate (50% of costs): up to $8,000
Realistic maximum: ~$8,700
Below 80% AMI — Tier 4 ducted ASHP, propane replacement
- Focus on Energy income-qualified Tier 4: $900
- Propane replacement bonus: $350
- HEAR heat pump rebate (100% of costs): up to $8,000
Realistic maximum (heat pump alone): ~$9,250
Full electrification (+ HPWH, panel, wiring): up to ~$15,250
What you'll actually pay
In most cases, a Wisconsin homeowner installing a cold-climate heat pump will pay $6,000 to $14,000 out of pocket, depending on system size, home type, and income qualification. Income-qualifying households replacing propane heat may pay significantly less — in some cases under $5,000 after all incentives.
Wisconsin does not offer any state-level tax credits for heat pumps. No dedicated state loan program exists for residential heat pump installations, though Milwaukee's Me2 program fills part of this gap locally.
Weatherization assistance
The Wisconsin Weatherization Assistance Program (WAP), administered by the Department of Administration through local Community Action Agencies, provides free home weatherization services to households at or below 60% of State Median Income. WAP primarily covers insulation, air sealing, and furnace or boiler repair — it does not typically install heat pumps directly. However, WAP-eligible households can combine weatherization services with HEAR heat pump rebates for a comprehensive upgrade at little to no cost. Applications are through the Home Energy Plus program at homeenergyplus.wi.gov.
Wisconsin's cold climate: equipment selection matters
Wisconsin sits in IECC Climate Zones 6A and 7 — among the coldest in the continental United States. This demands cold-climate heat pumps rated to the ENERGY STAR specification: COP ≥ 1.75 at 5°F and heating capacity retention ≥ 70% at 5°F.
| City | Design temp (99.6%) | Heating degree days |
|---|---|---|
| Milwaukee | -5°F | ~6,500 |
| Madison | -10°F | ~7,200 |
| Green Bay | -11 to -13°F | ~7,700 |
| Eau Claire | -14 to -16°F | ~8,200 |
Modern cold-climate models maintain COP of 1.5–2.0 even at -15°F — still 50–100% more efficient than electric resistance heating. Most Wisconsin installers recommend dual-fuel systems (heat pump paired with existing gas furnace) for homes on natural gas. The heat pump handles the vast majority of heating hours at COP 2.5–4.0, with the gas furnace activating only during the coldest periods.
The propane opportunity
Roughly 253,000 Wisconsin households rely on propane at approximately $1.97/gallon. At the state's average electricity rate of $0.16/kWh, a heat pump operating at seasonal COP 3.0 costs approximately $900/year to heat the same home that costs $1,200+ on propane. Rural propane households are the strongest economic candidates for heat pump conversion.
Best candidates in Wisconsin
- • Homes currently using propane or electric resistance heat
- • Rural households without natural gas access
- • Homes planning electrical upgrades anyway (panel + wiring = $6,500 HEAR eligible)
- • Anyone below 150% AMI — HEAR covers a large share of costs
See also: Are home batteries worth it in 2026?
How to apply
Check your income eligibility
Visit focusonenergy.com/home-energy-rebates to determine whether you qualify for HEAR (below 150% AMI) or HOMES (all incomes).
Find a participating contractor
Use Focus on Energy's Trade Ally directory to find an approved installer. HEAR requires an IRA Registered Contractor. Focus on Energy instant discounts are applied automatically through the distributor when your Trade Ally orders equipment.
For HOMES: schedule an energy assessment
HOMES requires a professional energy assessment before work begins. Your contractor can arrange this through Focus on Energy.
Get income confirmation before installation (HEAR only)
Income-qualified applicants must receive confirmation before installation begins. Retroactive income-qualified discounts are not available.
What to watch
IRA funding runway
Wisconsin's $149 million IRA allocation is a fixed pool — once exhausted, HEAR and HOMES rebates end. No replenishment mechanism exists. Act while funding remains available.
Focus on Energy program year
The current program year runs January 1 through December 31, 2026. Rebate amounts and tier thresholds could change for 2027.
Rural co-op programs
Co-op rebate amounts vary by utility and program year. Contact your cooperative directly for current amounts — they may offer more than the Focus on Energy base level.
Frequently asked questions
What heat pump rebates are available in Wisconsin in 2026?
Wisconsin heat pump rebates in 2026 come from three sources: Focus on Energy instant discounts of $400–$900 for air-source heat pumps (available statewide to all income levels), HEAR rebates up to $8,000 for income-qualifying households (below 150% AMI), and HOMES rebates up to $10,000 for whole-home energy reduction projects. Federal tax credits under Sections 25C and 25D expired December 31, 2025.
Can I stack Focus on Energy rebates with HEAR or HOMES in Wisconsin?
Yes. Focus on Energy rebates can be combined with either HEAR or HOMES rebates. However, you cannot receive both HEAR and HOMES for the same specific upgrade — choose whichever program provides the larger benefit for each component of your project. A low-income homeowner could receive up to $9,250 or more by combining Focus on Energy with HEAR for a heat pump installation.
Do heat pumps work in Wisconsin winters?
Yes. Modern cold-climate heat pumps maintain heating output at temperatures well below zero. Wisconsin's design temperatures range from -5°F in Milwaukee to -16°F in Eau Claire. Cold-climate models rated to ENERGY STAR specifications maintain a COP of 1.5–2.0 even at -15°F, which is still 50–100% more efficient than electric resistance heat. Most Wisconsin installers recommend dual-fuel setups that pair the heat pump with an existing gas furnace for the coldest days.
Who administers Wisconsin's IRA rebate programs?
The Public Service Commission of Wisconsin (PSC) oversees both the HOMES and HEAR programs, with Focus on Energy serving as the administering organization. Wisconsin was the first state to launch the HOMES program in August 2024. HEAR launched in December 2024. The state received approximately $149 million in total IRA funding.
Are there additional heat pump rebates from Wisconsin utilities?
Major investor-owned utilities — We Energies, Alliant Energy, Madison Gas and Electric, Wisconsin Public Service, and Xcel Energy Wisconsin — all participate exclusively through Focus on Energy rather than offering separate utility-specific rebates. However, many rural electric cooperatives offer their own heat pump rebates on top of Focus on Energy, making co-op members potentially eligible for the most generous combined incentives in the state.
Disclaimer: This page covers the main statewide, utility, and IRA heat pump incentives available to Wisconsin homeowners in 2026. It does not calculate savings, guarantee eligibility, or represent any incentive program. Wisconsin has additional rural electric cooperative programs that may apply in your area. We verify status regularly but programs can change without notice. Always confirm current amounts and eligibility with Focus on Energy and your contractor before making decisions.
See how this state compares → Heat Pump Rebates by State (2026)