HVAC Rebates Start With the Utility on Your Power Bill.

HVAC Rebates — Frequently Asked Questions

• What's the difference between a tax credit and a rebate?

  A federal tax credit reduced your federal tax liability for the year the equipment was placed in service and was claimed on IRS Form 5695. A utility rebate is paid by your electric utility after the install is documented and, for some programs, inspected. A manufacturer promotion is offered by the equipment maker on specific equipment for a limited time. The federal 25C credit expired December 31, 2025 (see the tax credits page), so for 2026 installs the incentives that matter are utility programs, any active manufacturer promotion, and financing.
• Which electric utility serves my Baldwin County home?

  Check the utility name printed on your electric bill — service boundaries do not follow city limits. Baldwin EMC is the largest electric provider in Baldwin County (Gulf Shores, Orange Beach, and most unincorporated areas). Riviera Utilities serves Daphne, Spanish Fort, Point Clear, Loxley, Silverhill, Summerdale, Foley, Elberta, Lillian, Bon Secour, and Magnolia Springs. Fairhope Utilities serves Fairhope and Robertsdale Utilities serves Robertsdale. Alabama Power serves a comparatively small share of the county, including pockets such as part of Bay Minette.
• What does the Baldwin EMC heat pump rebate require?

  Baldwin EMC offers a tiered heat pump rebate to members who own single-family homes. Its published steps: a licensed HVAC contractor performs a Manual J load calculation, the entire system is replaced, you call Baldwin EMC to arrange an inspection by an energy marketing specialist and provide the Manual J results, and the rebate is approved based on that inspection and load calculation. For existing manufactured homes replacing an electric furnace with a heat pump, Baldwin EMC lists up to $400 per ton. Amounts for site-built homes follow Baldwin EMC's tiered schedule — confirm the current figure with Baldwin EMC at (251) 989-6247.
• Is there a Riviera Utilities heat pump rebate?

  Not that we can find. As of September 2026, Riviera Utilities does not list a heat pump or HVAC rebate program on its website. Riviera does publish energy-saving guidance recommending a heat pump over electric-resistance heat. If you are a Riviera customer, check rivierautilities.com or call Riviera directly in case that changes.
• What is Alabama Power's heat pump rebate?

  Alabama Power lists a $1,000 High Efficiency Heat Pump Rebate for active Alabama Power residential customers who own the property and switch from a gas furnace to an all-electric heat pump rated 20 SEER / 18 SEER2 or higher. The application must be completed within 90 days of purchase, the rebate may be subject to an onsite inspection, and Alabama Power says the offer ends December 1, 2026. It does not cover replacing an existing electric system, and Alabama Power serves a small share of Baldwin County, so it applies to relatively few homes here.
• What about water heater rebates if I'm replacing my HVAC at the same time?

  It depends on your utility. Alabama Power currently lists $600 rebates on tank and hybrid electric water heaters for property owners converting from gas in existing single-family homes. Baldwin EMC's Energy Efficiency Loan Program covers water heating upgrades for eligible members. The federal 25C credit that used to cover heat pump water heaters expired December 31, 2025. Check with the utility on your bill for what is currently offered.