HVAC Rebates for Decatur, AL Homeowners
If you’ve heard about the federal 25C tax credit that used to cover up to $2,000 on qualifying heat pumps and HVAC equipment, we need to let you know that credit expired on December 31, 2025. It’s no longer available for new installations.
But that doesn’t mean the savings dried up. There are active rebate programs available right now to Decatur area homeowners, and most people don’t even realize they exist. Here’s what you can actually take advantage of today.
TVA EnergyRight Rebates Through Your Local Utility
This is the one that surprises most of our customers. Since Decatur gets its electricity through Decatur Utilities, a TVA distributor, you automatically have access to the TVA EnergyRight residential rebate program. These aren’t tax credits you have to claim at the end of the year. They’re direct rebates that put money back in your pocket after the job is done.
Southeastern Mechanical Services is a member of TVA’s Quality Contractor Network, so we handle the rebate submission for you as part of the job. Once your upgrade is complete, we submit everything to TVA EnergyRight, and you’ll get an email with a code to claim your rebate. That’s it. No tax forms, no waiting until April.
Heat Pumps: Up to $800 Back
Heat pumps are the most efficient way to heat and cool a home in our part of Alabama, and TVA EnergyRight offers up to $800 when you upgrade to a qualifying system. Our mild winters and long cooling seasons make heat pumps a natural fit here, and this is the upgrade most of our customers end up going with.
Ductless Mini Splits: $800 Rebate
Adding climate control to a garage, sunroom, bonus room, or older home that doesn’t have ductwork? A qualifying mini split (17 SEER2 or higher) gets you an $800 rebate. As a Mitsubishi Diamond Contractor, this is one of our specialties. Mini splits give you room-by-room temperature control, and once people try it, they wonder why they waited so long.
Geothermal Heat Pumps: $1,500 Rebate
For homeowners thinking long-term, geothermal systems qualify for a $1,500 TVA EnergyRight rebate. These systems can cut heating and cooling costs by up to 50% compared to conventional setups. The upfront cost is higher, sure. But between the rebate and the dramatic drop in monthly bills, the math works out faster than most people expect.
Central Air Conditioning: Up to $400 Back
Replacing an old AC with a higher-efficiency unit (15 SEER2 or higher) can qualify for up to $400. If your system is over 10 years old, a new unit could mean 20% to 40% lower cooling costs. In an Alabama summer, that’s real money every single month.
More Rebates Worth Knowing About
TVA EnergyRight also covers some things homeowners tend to overlook:
- HVAC Tune-Up: A $50 rebate for a professional tune-up on your heat pump or AC system. Basic maintenance that keeps your equipment running right and lasting longer.
- Duct Sealing: Leaky ducts can waste up to 20% of your conditioned air. There’s a rebate available to help cover the cost of sealing them up.
- Air Sealing and Insulation: A $300 rebate for sealing air gaps and adding insulation in your attic. This can trim your energy bills by 10-20% on its own.
- Smart Thermostat Rewards: Decatur Utilities participates in the Smart Thermostat Rewards program, which pays you a $65 enrollment rebate plus up to $65 every year for participating. You can also get up to $100 off a qualifying Wi-Fi thermostat.
Coming Soon: ADECA Home Energy Rebates
There’s another program on the way that could mean even bigger savings. The Alabama Department of Economic and Community Affairs (ADECA) is building out a Home Energy Rebates Program funded by the federal Inflation Reduction Act. When it launches, the program is expected to offer rebates on heat pumps and other energy efficiency upgrades.
ADECA hasn’t announced a launch date yet. The program is still under development. But the expected rebate amounts are significant, ranging from $2,000 to $8,000 per household depending on income qualification and energy saved. That’s statewide, including Decatur and all of Morgan County.
We’re watching this program closely and will update this page when details are available. Want to be one of the first to know? Give us a call or contact us and we’ll keep you posted.
A Note for Customers Outside Decatur City Limits
If you live in the rural areas of Morgan County outside the Decatur city limits, your electricity probably comes from Joe Wheeler EMC instead of Decatur Utilities. Joe Wheeler is also a TVA distributor, which means you’re eligible for the same TVA EnergyRight rebates listed above. You can reach them at (256) 552-2300 to confirm what’s available on your account.
Pair Your Rebate With Flexible Financing
Rebates are great, but they come after the install. If the upfront cost is the thing holding you back, we offer multiple financing options that let you get the upgrade now and pay over time. Between a rebate and the right financing plan, a lot of our customers are surprised at how manageable the whole thing becomes.
Get Your Free Estimate
Ready to find out what a new system would cost after rebates? Call us at (256) 686-3444 or contact us online to schedule a free estimate. We serve Decatur, Athens, Hartselle, and communities throughout North Alabama.
Note: Rebate programs, amounts, and eligibility can change at any time. Information on this page is current as of February 2026, but we recommend confirming details with your utility provider or with us directly. Rebate programs are administered by TVA EnergyRight and local power companies, not by Southeastern Mechanical Services.
