Austin AC and Heating: Austin Energy Rebates and Permits

In Austin, cooling is the bigger job by far. NOAA's 1991-2020 normals for Camp Mabry show about 3,290 cooling degree days a year against 1,442 heating degree days. Austin Energy pays $600 to $950 for a qualifying AC or heat pump. Texas Gas Service has no furnace rebate now. For a swap inside city limits, plan on a City Mechanical Change Out permit.

How hard does Austin's climate work an air conditioner?

Two NOAA files for the Camp Mabry station describe the year. The annual normals count the hot days and cold nights. The monthly normals show when they land. August peaks with a normal high of 97.8°F, and July follows at 96.6°F. January has the coldest nights, with a normal low of 41.8°F.

Split by month, the pattern is plain. The monthly file puts about 2,325 cooling degree days in June through September alone, roughly 71% of the year. December through February hold about 1,047 of the heating degree days. NOAA's documentation sets both counts at a 65°F base. So when you compare quotes, the cooling ratings deserve most of your attention.

Sizing: Austin Energy asks for the math

Austin Energy's rebate rules give you a local reason to ask for a load calculation. Its AC rebate page says your installer must size the equipment with an approved ACCA Manual J method, or with Austin Energy's own sizing guidance, and attach proof. Ask for that report even if you skip the rebate. If a quote moves you up a size from the system you have now, the report should show why.

Heat pump, gas furnace or heat strips?

Austin's normal winter is mild. ENERGY STAR says an air-source heat pump can deliver up to three times more heat energy than the electrical energy it uses. It adds that pairing one with a backup source heats most efficiently when temperatures drop further. By NOAA's count, only about 12 nights a year reach 32°F here.

The rebate rules lean one way. Austin Energy's rebate page says "air conditioning systems with electric resistance heating elements do not qualify." If you have an AC paired with electric heat strips today, ask how a heat pump or a gas furnace would change the rebate before you pick. Our guide to dual-fuel heat pumps explains how a heat pump and a furnace split the work.

Plan for a week like February 2021

The rare hard freeze still needs a plan. The National Weather Service office for Austin and San Antonio recorded 8°F at Camp Mabry on February 15, 2021, and 7°F the next morning. Both were record lows for those dates. The station stayed below 33°F for 144 hours straight, from 4 p.m. on February 12 to 4 p.m. on February 18. That beat a record of 5 days and 20 hours from December 1983. Austin-Bergstrom airport fell to 6°F on February 16, a new February low there.

ENERGY STAR says its certification requires third-party verified low-temperature performance, with heat pumps tested down to 5°F. That is close to what the airport saw. Ask any heat pump installer what heats the house at those temperatures, and what that backup heat needs from your electrical panel.

What rebates can you get for a new AC or heat pump in Austin?

Most of the money here comes from Austin Energy. Its service area map covers about 437 square miles, roughly half inside Austin city limits. It also takes in all or part of Bee Cave, Lakeway, Pflugerville, Cedar Park and other nearby places. Its rebates require that you get your electricity from Austin Energy. This is what each program said when we read it on November 9, 2026.

How Austin Energy's tiers work

Both Austin Energy offers pay by tier. Every tier sets SEER2 and EER2 floors, and heat pumps add an HSPF2 floor. The AC rebate page lists the stand-alone amounts. The Home Energy Savings page pays more for the same tiers when the system is part of a larger project.

The stand-alone rebate comes with firm conditions on the AC rebate page. Your home and the system you replace must both be 10 years old or older. The condenser, the furnace or air handler, and the evaporator coil must all be new. Your participating contractor files within 90 days of installation. All required City of Austin permits must be in place, and you agree to a post-installation inspection. The page says no rebate is guaranteed until Austin Energy reviews and approves it.

Home Energy Savings is the larger offer, with more strings. The program page requires at least three efficiency measures. Air and duct sealing, at $0.20 per square foot of floor area, and a total external static pressure check, at $175 for the first system, sit under "Mandatory Building Performance Measures." Contractors must give at least a one-year warranty. Mobile homes are out, and so are homes with spray foam insulation or asbestos in the HVAC system.

Two more lines on that page are worth knowing. If you later sell a home inside City of Austin limits, the program's completion document exempts you from reporting under the Energy Conservation Audit and Disclosure (ECAD) ordinance. The page also gives two end dates for its zero-percent loan, September 30, 2026 in one place and September 30, 2027 in another. It was last reviewed on September 2, 2025, so confirm the loan with Austin Energy before you count on it.

Help for lower-income households, and thermostat credits

Austin Energy's Weatherization Assistance provides improvements at no cost to qualifying customers. The list includes attic insulation, duct repair and sealing, solar screens and a smart thermostat. Participants can also get a rebate and 0% financing for up to 10 years on a new air conditioner. Since March 7, 2025, households must be in the Customer Assistance Program, or be on the Medically Vulnerable Registry and meet the 80% income limit. For four people that limit is $97,800. Questions go to 512-482-5346.

Power Partner pays a $75 bill credit for each eligible smart thermostat you enroll, up to five. You then get $30 a year for each one that stays enrolled. In return, Austin Energy can shift your setting by up to 4 degrees, typically for two hours between 3 and 6 p.m. from June 1 through September 30. You can override an event with no penalty. A separate $50 rebate covers buying and installing a new eligible thermostat.

Gas, state and federal money

Texas Gas Service offers no furnace rebate right now. Its program page says its Energy Efficiency Program "has expired." The company asked the Railroad Commission of Texas to approve a new one, and the page says "that proposal was not approved." If someone offers you a gas furnace rebate in Austin today, ask to see the program document.

Texas has not opened the federal Home Energy Rebates either. The State Energy Conservation Office's HOMES and HEAR FAQ says the programs "are being designed during fall 2026" and that no launch date is set. It also says Texas is unable to accept receipts, and that work begun or completed before launch is unlikely to be reimbursed. DOE's program page sends homeowners to their state energy office for status. The IRS says the Energy Efficient Home Improvement Credit covers improvements made through December 31, 2025, so a 2026 install does not qualify.

Does an AC or furnace change-out in Austin need a City permit?

Yes, inside city limits. The City's list of work exempt from permits covers portable heating, cooling and ventilation appliances, and "replacing a minor part of the equipment that does not alter its approval or make it unsafe." A whole furnace, air conditioner or heat pump is not on that list. For that job, the City's permit types page lists a stand-alone Mechanical Change Out permit, for change-out work "that does not require a formal review by plan review staff." You apply in the Austin Build + Connect (AB+C) portal.

Only certain people can pull it. The City's stand-alone permit page says a registered trade contractor, or a registered homeowner acting as the trade contractor, must apply. Contractors must register with the City and update that registration every year with their trade license details. Once activated, a permit expires on the 181st day if no inspection has been scheduled or done.

Doing the work yourself is narrower than it sounds. A Homestead Permit lets an owner do mechanical work in the home that is their homestead and principal residence, with a homestead exemption on file. Its exclusions include "reclaiming and charging a ducted heating and air-conditioning system containing refrigerant." So the refrigerant side of a central AC or heat pump swap stays with a licensed contractor. TDLR adds that contractors who install, repair or maintain air conditioning or heating systems must hold its license.

The City's fees page says the FY 2026-27 fee schedule took effect on October 1, 2026. Ask each contractor whether the permit is in the price.

What the City inspector checks

The City's residential mechanical final checklist, dated August 3, 2022, is linked from the current Building Inspections page. Several of its items matter on a change-out.

• Attic equipment needs a 22 by 30 inch access opening, a solid catwalk at least 24 inches wide to the unit, and a 30 by 30 inch work platform in front of it.
• There must be a light and outlet at the unit, and a light switch at the attic opening.
• The outdoor condenser sits at least 3 inches above finished grade.
• Outdoor refrigerant access ports that are not otherwise secured get locking caps.
• Condensate drains to an approved location, with a secondary drain or pan suited to the unit.
• An approved third-party test report must be on hand "for any completed A/C duct system install or replacement."

The checklist ties that last item to Austin's local amendments to the energy code. Ask whether your job triggers the third-party duct test, who books the tester, and whether that cost is in the quote. The Building Inspections page says inspections are booked in the AB+C portal or by phone, and that scheduling is up to the contractor.

1. Ask who pulls the Mechanical Change Out permit and whether its fee is in the quote.
2. If you want the rebate, ask whether the company is an Austin Energy participating contractor.
3. Ask for the Manual J load calculation behind the size.
4. Ask whether the third-party duct test applies, and who pays for it.
5. Get the permit number before work starts, and hold the final payment until the final inspection passes.
6. Make sure the rebate application goes in within 90 days of installation.

These are City of Austin rules. Austin Energy's service area also reaches parts of Travis and Williamson counties and several neighboring cities. If you live outside Austin city limits, your own city or county sets the permit rules. Rebate eligibility still turns on whether Austin Energy supplies your electricity.

How can you verify an air conditioning contractor in Austin?

Start with the state record. The TDLR License Data Search shows active licenses only. You can search by license number, name or business name, city, county or ZIP code. If a license does not come up, TDLR asks you to call Customer Service at 800-803-9202.

Then read the number on the quote. TDLR's ACR Contracting at a Glance sheet, dated December 2025, gives the format: TACL, then the class, number and endorsement code. Class A covers any size of unit. Class B covers cooling systems of 25 tons and under, and heating systems of 1.5 million BTUs per hour and under. The E endorsement, environmental air conditioning, includes central air conditioning and heating. C means the contractor holds both endorsements.

The same sheet holds a rule that protects you. A company that does not employ a licensed ACR contractor when the contract is signed "cannot collect a fee or enforce the contract." It also notes that registered technicians need no exam or experience and must be supervised by a licensed contractor. Ask whose license covers your job.

The license number should be easy to find. Under Texas rule 16 TAC 75.71, a company must show it on both sides of every vehicle, two inches tall or more, and on its advertising, proposals and invoices. You are owed an invoice for all air conditioning and refrigeration work. TDLR's administrative orders search lists sanctions from the current fiscal year and the two before it. Problems can be reported on the TDLR complaint page.

For the rebate, add one more check. Austin Energy's rebate page says you must use one of its participating contractors, and it tells you to make sure the company is authorized by Austin Energy. Ask the company, then confirm with Austin Energy.

A company's website tells you less than these records. We measured the websites of HVAC companies that advertise on Google in the Austin area. The table below sets them beside every city we measured. It shows how slowly the pages load on a phone, how many hide their Google rating, and how many have no contact form. The sample is small and covers advertisers only, not every contractor in town.

Use each gap as a reason to check for yourself. If a site shows no rating, look the company up on Google Maps and read the newest reviews, low ones included. If there is no form, call the office. Either way, ask for the TACL number and run it through the TDLR search. Ask, too, whether the company will pull the City change-out permit and file the Austin Energy paperwork. Our guide to comparing HVAC quotes walks through the line items.

Who do you call if you smell gas in Austin?

Texas Gas Service serves Austin. In a May 2025 presentation to the city's Resource Management Commission, it counted 234,980 customers inside Austin city limits in 2024. If your gas bill comes from a different company, use the emergency number on that bill. The utility's gas odor page gives these steps.

1. Leave the area immediately.
2. Once you are clear, call 911 and Texas Gas Service at 800-959-5325.
3. Do not flip a light switch, ring a doorbell, or light a match or cigarette.
4. Do not use your phone, tablet, computer or other mobile devices.
5. Do not open or close windows or the garage door, and do not start a vehicle nearby.

Carbon monoxide is the other gas risk. Texas Gas Service's CO page lists warning signs at the appliance: a yellow flame instead of a blue one on burners, and black soot around vents or flues. The symptoms it names include headache, dizziness, ringing in the ears, fatigue, nausea, weakness and vomiting. If you suspect CO, it says to leave the building for fresh air, call 911, and get medical help even for minor symptoms. It also says to install and maintain a CO detector.

The CPSC says to put CO alarms on every level of the home and outside sleeping areas. It also says never to run a portable generator inside a home or garage, even with doors and windows open. Keep that in mind during a long outage. The NWS summary of the February 2021 storm lists failed power grids among its impacts across Texas. For the furnace side of CO, see our guide to furnace carbon monoxide.

Questions people ask