Utility Rebates & Demand-Response Programs by State (2025): Smart Thermostats, Heat Pumps & More
Smart thermostats and heat pumps can qualify for $25–$500+ in rebates and ongoing bill credits through utility demand-response programs. This 2025 guide shows you exactly where to check by state, how to stack incentives, and the settings that keep your heat pump efficient.
Already picked your thermostat? Compare heat-pump-ready models in Best Thermostats for Heat Pumps (2025) and wire it correctly with C-Wire Explained.
Why rebates & demand response matter in 2025
Rebates reduce upfront cost; demand-response (DR) pays you to help the grid during peak hours. A typical household can claim a $50–$125 thermostat rebate plus $25–$100 in annual DR bill credits. Pair that with a heat-pump rebate and you’re looking at hundreds—sometimes thousands—off the project price.
Authoritative places to start:
- ENERGY STAR® Rebate Finder (enter ZIP; choose “Smart Thermostat” or “Air-Source Heat Pump”)
- U.S. DOE Energy Saver: Heat Pump Systems
- DSIRE — Database of State Incentives for Renewables & Efficiency (comprehensive state & utility listings)
If your thermostat carries the ENERGY STAR mark, it’s more likely to qualify. See our DIY setup guide to install safely and pass utility verification.
How to find & claim your rebate (5-minute path)
- Open the ENERGY STAR Rebate Finder and enter your ZIP.
- Select the category (Smart Thermostat, Heat Pump, Ductless Mini-Split, etc.).
- Choose your utility from the list and review “How to Apply.” Some require purchase through a utility marketplace to auto-apply the discount at checkout.
- Enroll in the utility’s demand-response program (often called “Rush Hour Rewards,” “Smart Savers,” “Bring Your Own Thermostat,” or “Demand Flexibility”).
- Keep proof of purchase and a photo of the installed device’s model/serial (if requested). Submit within the stated window—commonly 60–120 days.
Tip: Some utilities combine rebate + DR enrollment (“Get $50 now and $25/yr when you stay enrolled”). Read the terms—opting out of too many events can reduce credits.
Stacking incentives: thermostat + heat pump + DR credits
| Incentive | Typical Value | Where to claim | Can stack with |
|---|---|---|---|
| Smart Thermostat Rebate | $25–$125 | Utility or state energy office | DR credits + heat-pump rebate |
| Demand-Response Credits | $25–$100/yr | Utility DR enrollment | Thermostat + heat pump |
| Air-Source Heat Pump | $300–$2,000+ | Utility/state/federal | Thermostat + DR |
| Mini-Split Heat Pump | $300–$1,500+ | Utility/state | Thermostat + DR |
Running a heat pump? Dial in aux lockout temperatures and balance point so DR events don’t trigger expensive electric strips.
State directory: rebates & demand-response (links)
Use the directory below to jump to your state. For each state you’ll find: where to search, common program names, and quick-action links. Because utilities and offers change, start with the ENERGY STAR finder and your state energy office, then enroll in a matching DR program.
Alabama (AL)
- Search rebates: ENERGY STAR Finder (enter ZIP)
- State energy office: AL listing
- DR keywords: “Bring Your Own Thermostat (BYOT),” “Smart Saver,” “Peak Rewards.”
Alaska (AK)
- Rebates vary by co-op; check ENERGY STAR finder + local utility marketplace.
- Cold-climate tip: set aux lockout ~20–25°F to reduce strip-heat use.
Arizona (AZ)
- Look for thermostat rebates + DR credits with “Cool Rewards.”
- Heat pumps common; weather-aware thermostats perform best.
Arkansas (AR)
- Utilities often offer $50–$100 for smart thermostats; DR is seasonal.
California (CA)
- Good coverage on thermostat rebates + robust DR (“Rush Hour Rewards,” “Demand Flexibility”).
- Check your electric utility marketplace—instant discounts are common.
Colorado (CO)
- Frequent rebates for heat pumps + thermostats; DR offers summer peak credits.
Connecticut (CT)
- Strong home energy programs; thermostats typically rebated $50–$100.
- DR enrollments pay additional yearly bill credits.
Delaware (DE)
- Smaller utilities but solid thermostat + heat-pump rebates through state efficiency programs.
District of Columbia (DC)
- Look for instant marketplace discounts + summer DR credits.
Florida (FL)
- Thermostat rebates vary; DR often focused on summer peak (A/C cycling events).
- Heat pumps primarily for cooling; DR still pays for smart thermostat participation.
Georgia (GA)
- Check utility marketplace for instant thermostat discounts; BYOT DR programs available.
Hawaii (HI)
- Programs exist but vary by island and utility; check ENERGY STAR finder first.
Idaho (ID)
- Seasonal thermostat rebates; heat-pump incentives strong in some service territories.
Illinois (IL)
- Thermostat rebates $50–$100 are common; DR programs offer $40–$100/yr credits.
Indiana (IN)
- Look for BYOT DR programs + thermostat rebates via utility marketplaces.
Iowa (IA)
- Thermostat rebates available; heat-pump incentives offered by many co-ops.
Kansas (KS)
- Utility-specific programs; check finder + DR keywords “Smart Savers.”
Kentucky (KY)
- Smart thermostat rebates common; DR bill credits offered seasonally.
Louisiana (LA)
- Thermostat rebates available through certain utility efficiency programs.
Maine (ME)
- Strong heat-pump programs; thermostat rebates typically $50–$75.
- Cold-climate tip: set aux lockout near 20–25°F for minisplits.
Maryland (MD)
- Excellent coverage: thermostats, DR credits, and whole-home programs.
Massachusetts (MA)
- Leading state for heat-pump rebates; thermostats often rebated + DR credits.
Michigan (MI)
- Thermostat rebates common; DR credits paid for peak-event participation.
Minnesota (MN)
- Strong cold-climate programs; dual-fuel and heat-pump rebates robust.
Mississippi (MS)
- Thermostat rebates vary by utility—use finder + marketplace.
Missouri (MO)
- Look for BYOT DR + thermostat rebates through local utilities.
Montana (MT)
- Co-ops frequently offer heat-pump and thermostat incentives; cold-climate settings recommended.
Nebraska (NE)
- Public power districts often provide thermostat rebates; DR availability varies.
Nevada (NV)
- Thermostats commonly rebated; DR programs focused on summer peaks.
New Hampshire (NH)
- Thermostats & heat pumps supported via state efficiency collaborations.
New Jersey (NJ)
- Statewide programs + utility marketplaces; DR credits widely available.
New Mexico (NM)
- Thermostat rebates available; heat-pump incentives expanding.
New York (NY)
- Robust state & utility programs; thermostat + DR and heat-pump incentives are strong.
North Carolina (NC)
- BYOT DR programs common; thermostats rebated via marketplaces.
North Dakota (ND)
- Co-op-led programs; check finder + local provider pages.
Ohio (OH)
- Thermostat rebates $50–$100; DR credits offered for peak events.
Oklahoma (OK)
- Thermostat rebates vary; DR enrollments available seasonally.
Oregon (OR)
- Strong efficiency ecosystem; thermostats and heat pumps widely incentivized.
Pennsylvania (PA)
- Thermostat rebates common; DR (“Peak Time Savings”) often pays annual credits.
Rhode Island (RI)
- Heat pumps + thermostats supported; DR enrollments available.
South Carolina (SC)
- Thermostat rebates and BYOT DR programs offered by many utilities.
South Dakota (SD)
- Co-op incentives for thermostats and heat pumps; DR varies.
Tennessee (TN)
- Utilities often provide instant thermostat discounts + DR bill credits.
Texas (TX)
- Big DR market; thermostat rebates + peak-time credits common. BYOT programs widely supported.
Utah (UT)
- Thermostat rebates available; some utilities pay for DR participation.
Vermont (VT)
- Strong statewide efficiency support; thermostats rebated; DR enrollments available.
Virginia (VA)
- Thermostat rebates common; DR credits offered seasonally.
Washington (WA)
- Thermostats + heat pumps incentivized; electrification support growing.
West Virginia (WV)
- Thermostat rebates available in many territories; check finder + utility pages.
Wisconsin (WI)
- Thermostats, DR credits, and heat-pump incentives offered statewide via utility partners.
Wyoming (WY)
- Co-op-led programs; thermostat rebates available; DR varies.
Pro tip: many utilities run marketplaces with instant discounts—no forms required. If your rebate requires a form, file within 60–120 days and keep your receipt.
Fine print: eligibility, proof, timing
- Model eligibility: Most require ENERGY STAR certified smart thermostats. See our current picks in Best Thermostats for Heat Pumps.
- Proof of installation: Photo of the installed thermostat, model number, and serial may be requested.
- DR participation: Credits generally post once events are completed; frequent opt-outs can reduce payouts.
- Stacking: It’s usually allowed to stack thermostat + heat pump + DR. Always check your utility’s terms.
FAQ
What’s a demand-response (DR) event?
A short period where your utility adjusts your thermostat a few degrees to reduce grid load. You can usually opt out per event. DR participants receive upfront bonuses and/or annual bill credits.
Do I need an outdoor sensor for DR?
No. Your thermostat or utility uses weather feeds. For heat pumps, an outdoor sensor or weather-aware logic improves comfort during DR.
How long do rebates take?
Instant marketplace discounts are immediate; mail-in or online claims typically process in 4–12 weeks.
Bottom line
Combine a rebated, ENERGY STAR smart thermostat with a demand-response program and heat-pump incentives to slash costs now and every year. Start with the ENERGY STAR Rebate Finder, then enroll in your utility’s BYOT/DR program.
Next steps: pick a thermostat in Best Thermostats for Heat Pumps (2025), wire it correctly via C-Wire Explained, and install safely with our DIY guide. Round out your setup with smart bulbs for presence-based savings.
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