AZ Rebate Program

TEP - Residential Energy Efficiency Rebate Program

Administered by Tucson Electric Power

AI summary · 7/12/2026

TEP's Efficient Home Program offers instant rebates on high-efficiency heat pumps (up to $720) and air conditioners (up to $600) when you retire an older unit, plus rebates for duct sealing (up to $300) and AC tune-ups. Start with a free virtual home assessment by calling 866-473-8761 or emailing TEPEfficientHome@FranklinEnergy.com to get personalized recommendations and learn your rebate eligibility. You must use a participating contractor who will deduct the rebate from your final bill.

The Efficient Home Program increases your customer value by offering point-of-sale rebates on high-efficiency equipment installations—heat pumps up to $720, air conditioners up to $600, duct sealing up to $300, and AC tune-ups up to $160—that you deduct directly from invoices. To participate, you must be on TEP's approved contractor list; verify your program enrollment with Franklin Energy (the program implementer) before beginning customer work. Your installations are subject to inspection and testing to ensure optimal performance.

Franklin Energy implements the program for TEP, handling eligibility verification, free virtual assessments, rebate issuance, and customer service. The program targets TEP's residential customers in the Tucson area with instant point-of-sale rebates funded by the utility on cooling and heating equipment (the largest residential energy end use), duct sealing, and maintenance services. Participating contractors install equipment, perform inspections, and apply rebates; customers may alternatively self-apply for coil cleaning and refrigerant recharge services using a downloadable application and contractor invoice.

Program details

Program ID
3117
Last updated
8/8/2024

Eligibility

Sectors
residential installers/contractors
Technologies
heat pumps air conditioners duct/air sealing

Program summary

Tucson Electric Power (TEP) offers rebates to its residential customers who have certain energy-efficient equipment installed by participating contractors. The rebate is taken off the purchase price when you retire an older working unit or a non-working AC unit. Rebates also are available for duct sealing and AC tune-ups. Start by scheduling a free virtual home assessment. During the appointment, an advisor will help determine if your home's heating and cooling systems are operating efficiently.

Contact & resources

Please verify current program details with the administering agency before making any financial decisions.

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