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If SRP bills your electricity, Cool Cash is the one utility rebate still on the table for a new air conditioner or heat pump. It pays by the ton, and the rate rises with the quality of the compressor:
On a 5-ton variable-capacity system, the most common size for a Phoenix home, that works out to around $1,125. Amounts are set by SRP and change between program cycles, so we confirm the current figure before you sign anything.
What qualifies
The deadline that catches people out: the rebate application must reach SRP within six months of your installation date. Miss that window and it cannot be claimed retroactively. There is also a limit of five cooling system rebates per customer.
The Arizona Corporation Commission cut APS’s efficiency-program budget in late 2025, and residential AC and heat pump rebates were part of what got cut. As of 1 January 2026, there is no APS rebate on a new air conditioner or heat pump.
If a contractor puts an APS rebate on your quote today, ask them to show you the program in writing. Plenty of quote sheets and websites have not caught up.
What APS still offers is Cool Rewards, a demand-response programme that pays a bill credit for enrolling a qualifying smart thermostat and letting APS make brief setpoint adjustments during summer peak events. You can opt out of any individual event from the thermostat or app. It is a bill credit, not an equipment rebate, and the amounts are set by APS — check aps.com for current terms.
Efficiency Arizona, run by the Governor’s Office of Resiliency, offers rebates of up to $14,000 per household for qualifying electrification upgrades. Eligibility is based on household income relative to Area Median Income, and households above 150% AMI do not qualify.
Two rule changes took effect on 1 September 2026 that matter in the Valley:
Insulation and air-sealing standards may also be required alongside a rebated heat pump project. Check current eligibility at efficiencyarizona.com before planning around it.
The Section 25C Energy Efficient Home Improvement Credit, which paid up to $2,000 toward a qualifying heat pump, expired on 31 December 2025 and does not apply to equipment installed in 2026. If you are reading a page that still lists it, the page is stale. The same goes for the 25D credit.
This decides everything above, and the answer is not always the one people assume. SRP serves much of the East Valley, including Mesa, Tempe, Chandler and Gilbert, along with parts of Scottsdale and Phoenix. APS serves most of the rest, including large parts of Phoenix, Glendale, Peoria and the West Valley. Territories interleave block by block in places, so the only reliable answer is the name on your electricity bill. We check it before quoting.
SRP’s rebate is not automatic. It needs a completed application, the contractor’s signature certifying load calculation, airflow and refrigerant charge, the AHRI reference numbers for every component, a dated paid invoice and, on single-stage systems, the Manual J worksheet. Missing any one of those gets the application returned.
We handle all of it as part of the installation, and with a signed rebate assignment form the rebate can be applied against your invoice rather than arriving as a cheque months later. If your household may qualify for Efficiency Arizona, we will tell you before work begins, because the rebate has to be reserved first — equipment purchased or removed before approval is not eligible.
For APS customers, the rebate is gone, which means the maths now rests on running cost and reliability rather than a cheque. Two things are worth weighing:
For SRP customers, the rebate is a genuine reason to choose multi-stage or variable-capacity over the cheapest single-stage quote: the rebate tier rises with the compressor, so the gap between the two options narrows.
No. APS discontinued its residential AC and heat pump rebate program effective 1 January 2026, after the Arizona Corporation Commission cut its efficiency-program budget. Cool Rewards, a smart thermostat bill credit, is the one APS programme still running, and it is not an equipment rebate.
Cool Cash pays by the ton: $75 per ton for single-stage systems, $150 per ton for multi-stage, and $225 per ton for variable-capacity systems and inverter-driven mini-splits. A 5-ton variable-capacity system reaches roughly $1,125. Amounts change between program cycles, so we confirm the current figure on every quote.
Equipment must be AHRI-listed at SEER2 15.2 or better. That is above the federal minimum for our region, so confirm the exact model on your quote clears SRP’s bar before counting on the rebate.
Six months from the installation date. The application, the contractor certification and your dated paid invoice all have to be in by then, and it cannot be claimed retroactively afterwards.
Yes. We complete the contractor sections, provide the AHRI references and Manual J worksheet, and submit the application. With a signed assignment form, the rebate can come off your invoice instead of arriving later as a cheque.
No. The 25C credit expired on 31 December 2025 and does not apply to equipment installed in 2026.
Utility rebates and state programs are separate and can generally be combined where you qualify for both. Efficiency Arizona has its own rules, including no gas-to-electric conversions as of 1 September 2026, so we check both paths before quoting.
No. Emergency replacements qualify on the same terms, provided the equipment meets the efficiency requirement and both components are replaced on a split system. See emergency AC repair if you need someone out now.