San Antonio's utility rebates can meaningfully cut install costs — but the rules changed for 2026. Here's what's actually available.
If you're planning a new AC or heat pump install, San Antonio's utility rebates can meaningfully cut the upfront cost — but the rules changed for 2026. Here's what's actually available right now, based on current program details. If you're still weighing costs, see our full breakdown of what a new AC unit costs in San Antonio.
CPS Energy's STEP (Save for Tomorrow Energy Plan) program offers rebates to San Antonio homeowners who install qualifying high-efficiency HVAC equipment. For 2026, the rebate is tied directly to the SEER2 rating of the new system.
Rebates currently range from roughly $100 to $275 per ton, scaled to efficiency — a SEER2 15 system sits at the lower end, while a SEER2 18+ system qualifies for the higher tier. For a typical 3-ton residential system, that can mean several hundred dollars back after installation.
A few requirements matter here: the equipment has to be installed by a Texas-licensed HVAC contractor, and jobs within San Antonio city limits need a permit number on file. CPS Energy also enforces a strict application window after installation — don't wait to file the paperwork.
Worth knowing before you budget: the federal Section 25C tax credit (which used to offer up to $2,000 for heat pumps and smaller amounts for AC systems and furnaces) was eliminated for any equipment placed in service after 2025. If your new system goes in during 2026, it won't qualify for that federal credit — CPS Energy's local rebate is the main incentive left on the table.
Separately, the federal HEAR program can offer substantially larger rebates — up to several thousand dollars for a qualifying heat pump — for households under 80% of the area median income. Eligibility and funding availability vary, so this is worth checking directly if it might apply to you.
The most common way homeowners miss out isn't ineligibility — it's paperwork filed late or a missing permit number. When we install a new system, we make sure the documentation lines up with what CPS Energy requires so you're not chasing it down after the fact.
Rebate programs and dollar amounts change from year to year — always confirm current details directly with CPS Energy before budgeting around them. We're happy to walk through what a new install could qualify for as part of your free estimate.
We'll walk you through what a new install could qualify for.
