Incentives · checked 20 Oct 2026
Dallas AC rebates by utility
In most of Dallas the AC incentive comes from Oncor, and it is paid to a participating contractor, not to you: the 2026 program caps it at $2,000–$3,400 per system by size, with reports accepted until 4 December 2026. Garland, Denton and CoServ customers follow their own utility’s rules, and there is no federal tax credit for a system installed in 2026.
Which utility are you on?
Look at your electric bill. In the deregulated parts of DFW you buy power from a retail provider, but the poles and wires belong to a delivery utility, and for most of Dallas that is Oncor; its name and your ESI ID are on the bill. Cities with their own utility, such as Garland and Denton, are not in Oncor’s program. Electric cooperatives such as CoServ serve parts of Denton and Collin counties.
- Bill says Oncor (TDU charges): Oncor’s program; read on.
- Bill is from Garland Power & Light or Denton Municipal Electric: your city utility’s program.
- Bill is from CoServ: no efficiency rebate is currently offered.
- Gas from Atmos: a furnace rebate may apply on top.
Programs at a glance
| Utility | Who | Amount | How it is paid | Status |
|---|---|---|---|---|
| Oncor (delivery utility) | Most of Dallas and the deregulated DFW suburbs; check your bill | Caps per system from $2,000 (2 ton) to $3,400 (5 ton) | Through a participating service provider | Open until 4 Dec 2026 or funds run out |
| Garland Power & Light | Garland | Not stated on the official page | Total system change-out, 15.3 SEER2+ | Listed as ending 30 Sep 2026 |
| Denton Municipal Electric | Denton | AC $1,500–$2,000; heat pump $2,000–$2,500; mini-split 30% up to $750 | Customer applies within 90 days; permitted, inspected install | Fund $189,832 of $1M left (17 Jul 2026) — verify |
| CoServ | Member-owners in parts of Denton and Collin counties | No efficiency rebates offered | — | Stated on CoServ’s page |
| Atmos Energy (gas) | Mid-Tex gas customers | $300 (90%+ AFUE) or $350 (95%+) furnace | Customer applies within 12 months | 1 Jul 2026 – 30 Jun 2027 |
Each row was checked on 2026-10-20 against the utility’s own page or document. The Denton row comes from the City’s official listing because the page blocked a full read; confirm it with DME. Amounts change, and funds run out.
How Oncor’s program works
Oncor’s 2026 Home Energy Efficiency Standard Offer Program pays incentives to registered, approved energy efficiency service providers, who distribute them to the host customer. The dollar amount is not final until Oncor approves the provider’s production report.
Eligible single-family measures include high-efficiency central air conditioning, central heat pumps, ground-source heat pumps, mini-split air conditioners and mini-split heat pumps, plus insulation, air sealing, ENERGY STAR windows and radiant barriers. Customers must live in a permanent single-family home (up to a four-plex) with active Oncor service.
What this means for you
You do not apply to Oncor. You hire a contractor that is a registered Oncor service provider, sign its customer agreement before the old system comes out, and the incentive reaches you through that contractor: as a price reduction, a credit on the invoice or a later payment. Get which one in writing.
HVAC projects are documented with an AHRI certificate, a Manual J load calculation where the unit requires it, before-and-after nameplate photos, and a signed customer agreement. A project is disallowed if the old equipment was removed before the program paperwork was signed. Split systems need 11.6 EER or better; new construction qualifies only at 18+ SEER.
Sites outside the seven-county Metroplex (Collin, Dallas, Denton, Ellis, Johnson, Rockwall and Tarrant) get a 15% geographic adjustment; sites inside those counties do not. Dallas, Collin, Denton and Tarrant counties are all inside the seven, so a Dallas home gets the base rate.
Oncor caps by size
Oncor 2026 incentive cap per HVAC system
| System size | Cap per system |
|---|---|
| 2 ton | $2,000 |
| 2.5 ton | $2,200 |
| 3 ton | $2,600 |
| 3.5 ton | $2,900 |
| 4 ton | $3,200 |
| 5 ton | $3,400 |
A cap is the most the program will pay the contractor for one system. The contractor decides how much of it to pass to you; the manual only requires them to describe the value they give the customer. That is why two Oncor contractors can quote different “rebates” for the same equipment.
Claiming it, step by step
- Before anything is removed, ask each contractor whether they are a registered 2026 Oncor service provider. The manual disallows projects where the old equipment was already removed.
- Get the incentive on the quote as a separate line, with whether it is a discount now or a payment later.
- Sign the customer agreement and keep your copy, plus the customer disclosure form the contractor must leave.
- Keep the AHRI certificate and the Manual J if one was done.
- Expect a possible post-inspection. Oncor inspects a share of jobs.
- Mind the date. Oncor accepts 2026 production reports from 14 January 2026 until 6 p.m. on 4 December 2026, or until funding runs out. It pays the service provider within 45 days of approving a report.
Garland, Denton and CoServ
Garland Power & Light
The City of Garland’s central air conditioning and heat pump program required a total system change-out at 15.3 SEER2 or better and was listed as ending 30 September 2026 or when funds ran out. The page gives no rebate amount. For the 2027 program year, ask GP&L. Garland’s permit rules are on the Garland page.
Denton Municipal Electric
Denton Municipal Electric’s GreenSense page lists $1,500 (1–2.5 ton) or $2,000 (3–5 ton) for an air conditioner, $2,000 or $2,500 for a heat pump, and 30% up to $750 for a mini-split, applied for within 90 days on a permitted and inspected installation. The fund showed $189,832 of $1,000,000 left on 17 July 2026.
Verify: the City of Denton page blocked automated reading; these figures come from its official listing on 2026-10-20. Confirm with DME before you rely on them.
CoServ
CoServ states that it does not currently offer incentives or rebates for solar or other energy efficiency upgrades. The same page still refers to federal heat pump tax incentives; those ended for property placed in service after 2025.
Gas furnace rebate
Atmos Energy’s Mid-Tex appliance rebate program, running 1 July 2026 to 30 June 2027 for its Mid-Tex residential customers, pays $300 for an ENERGY STAR gas furnace rated 90% AFUE or higher and $350 for 95% AFUE or higher. Applications close 12 months after purchase or installation. It applies if you replace the furnace with the AC or choose dual fuel; see replacing the AC and furnace together.
Federal credits
The federal Energy Efficient Home Improvement Credit (25C) applied to qualifying property placed in service before 31 December 2025. It is not available for a system installed in 2026. A quote that subtracts a federal credit for a 2026 install is wrong. National incentive context is on our sister site, HyreHVAC.
Rebate traps
- “Up to” numbers from rebate directories. Many sites publish one page per city with conflicting Oncor amounts. The program pays by verified savings, under a cap; nobody can promise a figure in advance.
- Removing the old unit first. It can disqualify the job.
- Not knowing your utility. A Garland or CoServ address is not in Oncor’s program.
- Choosing equipment for the rebate alone. The incentive is a fraction of the price; the system has to fit the house. See SEER2 in Texas.
- Assuming the program is still open. Funds run out before the deadline in some years.
Short answers on rebates, permits and cost are collected in the AC installation FAQ. Paying the rest is covered in paying for an AC replacement.
Sources
- Oncor, 2026 HEE SOP Program Manual (dated 14 January 2026), §1 and §3 (retrieved 2026-10-20)
- Oncor, 2026 HEE SOP Program Manual, §2.2–2.3 (retrieved 2026-10-20)
- Oncor, 2026 HEE SOP Program Manual, §3.1, §3.3 and §8 (retrieved 2026-10-20)
- Oncor, 2026 HEE SOP Program Manual, §2.3, §4 and measure table (retrieved 2026-10-20)
- Oncor, 2026 HEE SOP Program Manual, §3.1 (retrieved 2026-10-20)
- Garland Economic Development, Central Air Conditioning & Heat Pump Program (links to GP&L EnergySaver) (retrieved 2026-10-20)
- City of Denton, Sustainability Incentives (read from the official listing; the page blocked a full read) (retrieved 2026-10-20) — verify before relying on it
- CoServ, Energy Saving Programs (retrieved 2026-10-20)
- Atmos Energy, Mid-Tex Appliance Rebate Program (retrieved 2026-10-20)
- IRS, Energy Efficient Home Improvement Credit (retrieved 2026-09-23)
- ENERGY STAR, Air-Source Heat Pumps key product criteria (retrieved 2026-10-20)
Questions
Does Oncor give rebates for a new AC?
Oncor’s 2026 program pays incentives for high-efficiency central ACs and heat pumps, but it pays registered service providers, who pass the incentive to the customer. Ask a contractor whether they participate before the old system is removed.
How much is the Oncor AC rebate?
The amount is calculated from verified kW and kWh savings and is not final until Oncor approves the report. The 2026 manual caps each system by size, from $2,000 at 2 tons to $3,400 at 5 tons.
Is there a federal tax credit for AC in 2026?
No. The 25C credit applied to qualifying property placed in service before 31 December 2025.
I am in Garland. Can I get a rebate?
The City’s central A/C and heat pump program was listed as ending 30 September 2026 or when funds ran out. Check with Garland Power & Light for the next program year.
Next step
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