What Efficiency Arizona is
Efficiency Arizona is a rebate program run by the Arizona Governor's Office of Resiliency and funded through the U.S. Department of Energy's Home Energy Rebates. It pays part or all of the cost for income-eligible households to install efficient electric equipment: heat pumps for heating and cooling, heat pump water heaters, heat pump dryers, electric cooking appliances, insulation and air sealing. It also pays for the electrical work that makes those appliances possible, which is where we come in: a new electric load service center (the panel) and the wiring to the appliance. The program says rebates are available through 2031, pending funding.
What the rebates cover
These are the program's published maximums per appliance or material, as of September 1, 2026. Rebates cover a percentage of the project cost depending on income, up to $14,000 per household. The two electrical lines carry the program's own footnote: electrical services are only eligible with the installation of a qualified appliance.
| Qualified product | Max rebate | Type |
|---|---|---|
| Heat pump for space heating or cooling | $8,000 | Qualified appliance |
| Heat pump water heater | $1,750 | Qualified appliance |
| Heat pump clothes dryer | $840 | Qualified appliance |
| Electric stove, cooktop, range, oven | $840 | Qualified appliance |
| Insulation, air sealing, ventilation | $1,600 | Building material |
| Electric load service center (the panel) | $4,000 | Our work, with a qualified appliance |
| Electric wiring | $2,500 | Our work, with a qualified appliance |
| Household maximum | $14,000 | All measures combined |
Source: efficiencyarizona.com, checked September 2026. The rebate may not cover the full cost; the applicant pays the balance, plus taxes and installation fees.
Who qualifies
Eligibility is by household income against the Area Median Income for your county and household size, which HUD updates every year. The program's talking points put it this way: households below 80 percent of AMI have 100 percent of qualified project costs covered, and households between 81 and 150 percent of AMI have 50 percent covered. A household also qualifies if at least one member is enrolled in a program such as SNAP, AHCCCS, LIHEAP, Lifeline, SSI, Head Start or public housing. The fastest way to find out is the program's eligibility screening tool, which takes a few questions.
Where a panel upgrade fits
Most of the Prescott homes we open were built between 1970 and 1999 and many still run on a 100 amp panel. A heat pump replacing an aging electric furnace and air conditioner, or a heat pump water heater replacing an electric tank, often needs a dedicated circuit that panel cannot spare. That is the pairing the program is built for: the appliance rebate covers the equipment, and the electrical rebate covers the new load center and the wiring to it. Since September 1, 2026, rebates apply only when an existing electric appliance is replaced with a qualified electric one. Replacing a gas furnace or gas water heater with electric is no longer eligible.
- Heat pump or mini-split replacing electric heating and cooling: dedicated 240 volt circuit, often a panel upgrade.
- Heat pump water heater replacing an electric tank: usually a new 30 amp circuit, sometimes a subpanel.
- Heat pump dryer or electric range replacing electric: normally existing circuits, occasionally new wiring.
How the process goes
- Step 1
Apply at efficiencyarizona.com
You create an account and submit the application with current income documents. The program says it takes 10 to 15 minutes if the paperwork is ready. Expired documents are not accepted.
- Step 2
Eligibility is determined
The Efficiency Arizona team reviews income and household size against the county limits and tells you what your household qualifies for.
- Step 3
Home assessment information
The program collects details about the house and the upgrade you want. This is where the panel and wiring scope gets attached to the appliance.
- Step 4
Contractor assigned, or the one you chose
A Qualified Contractor is assigned unless you are already working with one. If you tell them you are working with Ideal Electrical Solutions, the electrical scope stays with us.
- Step 5
You sign the agreement
The agreement spells out the approved measures and rebate amounts before any work starts.
- Step 6
The work gets done and inspected
We pull the permit, do the panel or wiring, meet the city or county inspector, and the program does its own post-inspection.
- Step 7
The rebate comes off the invoice
Rebates are applied to the contractor invoice and deducted from the project cost. You pay the balance to the contractor.
Two rules matter more than the rest. Work completed before program approval is not eligible, so apply first and quote second. And only projects installed by an Efficiency Arizona Qualified Contractor are eligible, which is why the badge on this page is worth something to you.
What we do as a Qualified Contractor
To be in the network a contractor has to hold an active Arizona ROC license, carry commercial general liability insurance, keep a clean record with the Registrar and the Better Business Bureau, and attend the program's training. Our part of a rebate project is the same as any other job: written quote from photos, permit pulled, panel or wiring done to the current code, inspection passed, directory labeled. The difference is that the program reviews the scope up front and inspects afterward, and the rebate comes off your invoice.
Being honest about what the badge means: the program states that qualified status indicates participation and minimal vetting, not an endorsement by the State of Arizona or the U.S. Department of Energy. Our license and our permits are the receipts; the badge just means we can do the electrical side of your rebate project.
When the rebate is not the answer
- You only need the panel. Without a qualified appliance in the project, the electrical rebate does not apply. We quote the panel the normal way and you skip the application.
- You are converting gas to electric. That has not been eligible since September 1, 2026. A panel upgrade for a gas-to-electric conversion is a regular job.
- Your household is above 150 percent of AMI, or the work is already done. Neither qualifies, and we would rather tell you now than after you fill out the forms.
Rebate questionsStraight answers
Will Efficiency Arizona pay for a panel upgrade by itself?
No. The program's own rule is that electrical services are only eligible with the installation of a qualified appliance. A panel or wiring rebate rides along with a heat pump, heat pump water heater, heat pump dryer, or electric cooking appliance. If you only need the panel, we quote it the normal way.
Do I have to pay the full price and wait for a check?
No. The program applies the rebate to the contractor's invoice and deducts it from the project cost, so you pay the balance after the rebate. The amount may not cover the full cost; the applicant is responsible for the remainder, plus taxes and installation fees.
Can I choose Ideal Electrical Solutions as my contractor?
Yes. The program assigns a Qualified Contractor unless you are already working with one. Tell the Efficiency Arizona team you are working with Ideal Electrical Solutions when you apply, and the electrical part of the project stays with us. We are listed in the Qualified Contractor network.
What changed on September 1, 2026?
A federal Home Energy Rebates notice ended fuel switching. Rebates now apply only when an existing electric appliance is replaced with a qualified electric one; replacing a gas appliance with electric is no longer eligible. Panel and wiring rebates continue, still paired with an eligible appliance rebate.
Does being a Qualified Contractor mean the state endorses you?
No, and the program says so plainly: qualified status indicates participation and minimal vetting, not an endorsement by the State of Arizona or the U.S. Department of Energy. What it does mean is that we hold an active ROC license, carry the required insurance, and took the program's training.
Is the program still open, and for how long?
Yes. Applications are being accepted under the guidelines that took effect September 1, 2026. The program says rebates are available through 2031, pending funding availability, so it is worth checking eligibility before you plan a heat pump or water heater replacement.