Austin Energy AC Rebates: What Qualifies and How to Apply

Replacing your air conditioner in Austin is a big investment, but Austin Energy AC rebates can knock hundreds of dollars off the cost. If you qualify, you could receive between $350 and $750 back after installing a new system. The catch? You have to meet specific requirements and follow the application process correctly. Miss a step or miss the deadline, and you lose the rebate entirely.

This guide walks you through exactly what qualifies for Austin Energy air conditioner rebates, how much you can get, and how to apply from start to finish. We serve homeowners throughout Austin, Round Rock, Cedar Park, and Pflugerville, and we handle the rebate paperwork for every qualifying installation.

What Qualifies for Austin Energy AC Rebates

Austin Energy offers rebates for both central air conditioners and heat pumps. The program rewards higher efficiency with larger rebate amounts. To qualify, your new system must meet minimum SEER2 and EER2 ratings, and your home and existing equipment must meet age requirements.

SEER2 and EER2 Requirements

SEER2 (Seasonal Energy Efficiency Ratio 2) and EER2 (Energy Efficiency Ratio 2) are the current federal efficiency standards for air conditioners. Austin Energy uses these ratings to determine which rebate tier your system falls into. Higher numbers mean better efficiency and a larger rebate.

For central air conditioners, the minimum qualifying ratings are SEER2 15.2 and EER2 11.7. Systems that exceed SEER2 16.0 and EER2 12.0 qualify for the higher rebate tier.

Rebate Tier Amounts

Heat pumps receive larger rebates because they provide both heating and cooling in a single system, reducing overall energy use. If you are considering a heat pump instead of a traditional AC, the extra rebate can help offset the higher upfront cost. Heat pump tiers also consider HSPF2 (Heating Seasonal Performance Factor 2), which measures heating efficiency. Tier 1 heat pumps require HSPF2 7.8, Tier 2 requires 8.0, and Tier 3 requires 9.0. For a full breakdown of all Austin Energy rebates for air conditioners and heat pumps, visit our rebates overview and Austin residential rebates page.

Pro Tip: Ask your contractor to show you the AHRI (Air-Conditioning, Heating, and Refrigeration Institute) certificate for any system you are considering. This document confirms the SEER2 and EER2 ratings and is required for the rebate application. If the contractor cannot provide it, that system may not qualify.

Eligibility Requirements

Not every AC replacement qualifies. Austin Energy has strict requirements that must be met before your rebate will be approved.

Home and System Age

• Your home must be at least 10 years old
• The existing HVAC system being replaced must be at least 10 years old
• You must be a current Austin Energy residential customer with an active account
• The property must be within the Austin Energy service territory

Installation Requirements

• All work must be performed by a participating Austin Energy contractor
• All components must be replaced as a complete system (outdoor unit, indoor coil, and air handler or furnace)
• The system must be sized using ACCA Manual J load calculations, not rules of thumb
• A post-installation inspection by Austin Energy or their designated inspector is required
• Your rebate application must be submitted within 90 days of the installation date

The "all components replaced" rule trips up many homeowners. If your outdoor condenser fails and you want to keep the existing indoor coil and air handler, you will not qualify. Austin Energy requires a complete system replacement because mixing old and new components reduces efficiency. A new high-efficiency condenser paired with an old evaporator coil will not perform at its rated efficiency.

ACCA Manual J is the industry standard for calculating heating and cooling capacity. It accounts for your home's square footage, insulation, windows, ceiling height, and local climate. Contractors who size systems with the old "one ton per 400 square feet" rule often oversize equipment, which wastes energy and shortens equipment life. An oversized AC cycles on and off too frequently, fails to dehumidify properly, and wears out faster. Austin Energy requires Manual J specifically to prevent this. At CG Service Pros, we run Manual J calculations on every installation. It takes a little more time upfront, but it means your system is right-sized for your home, which translates to better comfort, lower bills, and longer equipment life.

Common Disqualifiers

These are the most frequent reasons rebate applications get denied:

• Using a non-participating contractor. Only contractors registered with Austin Energy's program can perform qualifying installations. Working with anyone else means an automatic denial.
• Partial replacement. Replacing only the outdoor unit or only the indoor coil does not qualify. All major components must be replaced as a matched set.
• Missing the 90-day deadline. Applications submitted after 90 days from the installation date are not accepted. There are no exceptions.
• New construction. The program is for existing homes only. New builds do not qualify.
• System or home too new. Both the home and the existing system must be at least 10 years old.
• No Manual J documentation. Austin Energy requires proof that the system was sized using ACCA Manual J. If your contractor did not run the calculation or cannot provide the report, the application will be denied.

How to Apply: Step-by-Step

The application process is straightforward if you follow the right sequence. Here is how it works from before installation through receiving your rebate.

Before Installation

Step 1: Verify eligibility. Confirm that your home and existing system are at least 10 years old and that you are an Austin Energy customer within their service territory.

Step 2: Get estimates from participating contractors. Only contractors registered with Austin Energy can perform qualifying work. Ask each contractor to confirm their participation before you schedule an estimate.

Step 3: Request a Manual J load calculation. Your contractor should run an ACCA Manual J calculation before recommending equipment. This determines the correct system size and is required for the rebate.

Step 4: Select qualifying equipment. Choose a system that meets the minimum SEER2 and EER2 ratings for the rebate tier you want. Ensure all components (outdoor unit, indoor coil, and air handler or furnace) will be replaced as a matched system.

During Installation

Step 5: Use a participating contractor. Your contractor installs the new system and documents the installation details needed for the application. They should provide you with copies of the invoice, equipment specifications, and the Manual J report.

After Installation

Step 6: Schedule the post-installation inspection. Austin Energy or their designated inspector will visit to verify that the equipment matches the application, components are properly matched, and the installation meets program requirements.

Step 7: Submit your application within 90 days. This deadline is firm. Your rebate application, along with all supporting documentation (invoices, Manual J report, equipment specifications), must be submitted within 90 days of the installation date. Miss this window and you lose the rebate.

Step 8: Receive your rebate. Once your application is approved and the inspection passes, Austin Energy issues your rebate. Most homeowners receive their rebate within four to eight weeks. It typically appears as a credit on your Austin Energy account or as a check, depending on the program cycle.

Timeline: From Application to Rebate Check

Expect the following timeline after installation:

• Within 90 days: Application and supporting documents submitted
• 1 to 2 weeks: Austin Energy reviews the application and schedules the inspection (if not already completed)
• 2 to 4 weeks: Post-installation inspection (if not done earlier)
• 4 to 8 weeks after approval: Rebate issued

The entire process from installation to receiving your rebate check usually takes six to twelve weeks. Budget accordingly. The rebate is paid after the work is done, so you will pay your contractor in full at installation and receive the rebate separately.

One more thing to keep in mind: Austin Energy's rebate programs operate on an annual budget. When the budget runs out, the program pauses until the next funding cycle. This is a first-come, first-served structure. If you are planning to replace your system, the earlier you move, the better your chances of catching full funding. Waiting until mid-summer, when every HVAC company in the city is booked solid and rebate budgets are strained, adds unnecessary risk.

Why Work with CG Service Pros

We make the rebate process simple. As Austin Energy's 2024 Contractor of the Year, we know the application requirements inside and out. We handle all the paperwork, ensure your equipment qualifies, document the Manual J calculation, and submit your application within the 90-day window. You focus on enjoying your new AC installation; we handle the rest.

Not every contractor treats the rebate process with the attention it deserves. Some submit incomplete applications. Others skip the Manual J calculation and hope the inspector does not notice. A few do not even bother registering with Austin Energy's program. At CG Service Pros, we take a different approach. We prepare and submit your Austin Energy rebate application so you do not have to navigate the process alone. We will walk through all available rebates before you sign anything, so you know exactly what your out-of-pocket cost will be.

We serve homeowners throughout Austin, Round Rock, Cedar Park, and Pflugerville. If you are within the Austin Energy service territory and your system qualifies, we can help you capture every rebate dollar you are entitled to.

Ready to replace your AC and claim your Austin Energy rebate? Schedule a free consultation and we will assess your current system, confirm your eligibility, and walk you through your options.

Schedule Your Free Rebate Consultation

Questions? Call us at (512) 766-5079 or visit our contact page to schedule service.