[2025] Northwest Arkansas HVAC & Energy Rebates: A Complete List
2025 is here — and with it comes more free money from the utilities & government
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If you live in Northwest Arkansas, have SWEPCO or Black Hills Energy, and you've never gotten a rebate from either, you're missing out on free money.
See, utilities often pay people to do things that save them money. And generally speaking, the thing that saves them the most money is you reducing your energy usage.
Why?
Well, when you reduce your energy usage, it allows the utility to serve more people with the same amount of power plants, solar panels, etc. And considering that even a small power plant costs hundreds of millions of dollars to build, squeezing every last drop of usage out of them is pretty important to the utilities.
That stuff you probably knew. What you most likely don’t know is that the rebates the utilities use to incentivize people to reduce energy usage are paid for by additions to your monthly bill, regardless of whether or not you use them. Yes, you read that correctly.
So if you are a customer of either SWEPCO or Black Hills Energy, it’s in your interest to take a long look at the rebates below to determine if you’re eligible for any of them. At least two of them are absolute no-brainers worth hundreds of dollars that almost everyone reading this can and should redeem (the smart thermostat ones).
Quick HVAC-specific summary: If you're in Northwest Arkansas, SWEPCO will pay you up to $3,000 to install a qualifying HVAC system and Black Hills Energy will pay you up to $400 for a qualifying furnace. The other utilities in NWA do not have HVAC equipment rebate programs as of 2024. In addition to utility rebates, you can get up to $2,000 in tax credits for installing an energy efficient HVAC system (up to $600 for a regular AC). Try our new rebate calculator to see how much you might qualify for!
Important disclaimer: This page is provided as a good faith attempt to help educate people on the utility rebates and tax credits available for installing HVAC systems. Please do your own research and confirm any figures provided before making any major decisions. Lastly, many rebates end when the available budget for it runs out. Always call your utility to verify a rebate is still active before doing anything (a heads up to us so we can update this page would be much appreciated as well).
Utility rebates for installing an energy efficient product
SWEPCO
- Energy Efficient Heat Pump
- Rebate amount: up to $3,000 (chart here)
- How to get it: Have an approved contractor install the unit and submit the paperwork. You can find a list of approved contractors here (Franklin is one of them).
- Requirements:
- Must be installed by an approved contractor (of which we’re one)
- New system must be at least 15.2 SEER2 / 7.25 HSPF2 / 3.6 COP
- Smart Thermostat
- Rebate amount: $75 per thermostat
- How to get it: Buy a smart thermostat, install it, and then submit this form along with a receipt showing proof of purchase.
- Requirements:
- Thermostat must be ENERGY STAR certified (list of all approved ones here)
- Existing thermostat must be manual or programmable
- Two per home or apartment
- Must submit receipt within 90 days of installation
Note: Want the smart thermostat rebate but don't feel comfortable installing one yourself? We offer smart thermostat installation for $99 (you provide the thermostat).
- Heat Pump Water Heater
- Rebate amount: $1,000
- How to get it: Have an approved contractor install the water heater and submit the paperwork. You can find a list of approved contractors here.
- Requirements:
- Must currently have an electric water heater
- New unit must be ENERGY STAR certified
Black Hills Energy
- Natural Gas Furnace
- Rebate amount: $400
- How to get it: Have a contractor install the furnace. Then, submit this form along with an invoice showing proof of purchase.
- Requirements:
- Must be rated 95% or higher AFUE
- Rebate offer applies only to new natural gas furnaces
- If the heating system being replaced is electric or is a heat pump, no rebate is available
- Must submit invoice within 90 days of installation
- Tankless Water Heater
- Rebate amount: $300
- How to get it: Have a contractor install the water heater. Then, submit this form along with an invoice showing proof of purchase.
- Requirements:
- Must be rated .90 UEF or higher
- One per account
- Rebate offer applies only to new natural gas water heaters
- If the water heater being replaced is electric, no rebate is available
- Smart Thermostat
- Rebate amount: $50 per thermostat
- How to get it: Buy a smart thermostat, install it, and then submit this form along with a receipt showing proof of purchase. Despite what some contractors may say, you do not need a contractor to install the thermostat.
- Requirements:
- Thermostat must be ENERGY STAR certified (list of all approved ones here)
- Two per account
- Must submit receipt within 90 days of installation
Note: Want the smart thermostat rebate but don't feel comfortable installing one yourself? We offer smart thermostat installation for $99 (you provide the thermostat).
Utility rebates for services
SWEPCO
- A/C Tune-up
- Rebate amount: up to $250
- How to get it: Have an approved contractor perform the tune-up and submit the paperwork. You can find a list of approved contractors here.
- Requirements:
- System must be more than a year old
- Air Infiltration
- Rebate amount: up to $.12/cubic feet per minute reduction (single family) or up to $.20/cubic feet per minute reduction (multi-family)
- How to get it: Have an approved contractor install the air infiltration and submit the paperwork. You can find a list of approved contractors here.
- Requirements:
- <1.25 air changes/hr & >building air tightness limit
- >10% reduction at CFM50
- Duct Sealing
- Rebate amount: $1.25/cubic feet per minute reduction (single family) or $1.75/cubic feet per minute reduction (multi-family)
- How to get it: Have an approved contractor install the duct sealing and submit the paperwork. You can find a list of approved contractors here.
- Requirements:
- Existing system must allow <40% total fan flow & >80 CFM25
- New duct sealing must provide more than 10% reduction
Black Hills Energy
None at the current time
Federal HVAC Tax Credits
- High Efficiency Heat Pumps
- Credit amount: Up to $2,000 annually (30% of project cost)
- How to get it: Install a qualifying heat pump
- Requirements:
- Must install a heat pump of 16 SEER2 / 9.8 EER2 / 8.5 HSPF2 / ≥1.75 COP at 5°F / ≥60% at 5°F/47°F Capacity Ratio OR 16 SEER2 / 11 EER2 / 8 HSPF2 / ≥1.75 COP at 5°F / ≥45% at 5°F/47°F Capacity Ratio
- Must install between January 1, 2023 and December 31, 2032
- High Efficiency Air Conditioners
- Credit amount: Up to $600 annually (30% of project total cost)
- How to get it: Install a qualifying air conditioner
- Requirements:
- Must install an air conditioner of 17 SEER2 / 12 EER2
- Must install between January 1, 2023 and December 31, 2032
- High Efficiency Furnaces
- Credit amount: Up to $600 annually (30% of project total cost)
- How to get it: Install a qualifying furnace
- Requirements:
- Must install a furnace of at least 97% efficiency
- Must install between January 1, 2023 and December 31, 2032
Federal Water Heater Tax Credits
- Heat Pump Water Heater
- Credit amount: Up to $2,000 annually (30% of project cost)
- How to get it: Install a qualifying heat pump water heater
- Requirements:
- Must install a heat pump water heater with the ENERGY STAR label
- Must install between January 1, 2023 and December 31, 2032
- Natural Gas Water Heater
- Credit amount: Up to $600 annually (30% of project total cost)
- How to get it: Install a qualifying natural gas water heater
- Requirements:
- Product type
- Tank: ENERGY STAR model with ≥ 0.81 UEF for tanks less than 55 gallons and ≥ 0.86 UEF for tanks greater than or equal to 55 gallons
- Tankless: ENERGY STAR models with ≥ 0.95 UEF
- Must install between January 1, 2023 and December 31, 2032
- Product type
