Phoenix AC Replacement: Permits, Rebates, License Checks

NOAA's 1991-2020 normals for Phoenix Sky Harbor show about 111 days a year at 100°F or hotter. The city lets you swap an outdoor unit of 5 tons or less in kind without a permit, but indoor refrigeration work or a refrigerant change needs one. SRP customers can apply for Cool Cash. We found no APS rebate for a new AC.

How hot does Phoenix get, and what does that mean for your AC?

The National Weather Service office in Phoenix keeps the extremes for Sky Harbor. Its historical extremes page gives a 1991-2020 average of 111 days a year at 100°F or more, and 21 days at 110°F or more. In an average year the first 100°F day arrives around May 2 and the last comes around October 5. The all-time high is 122°F, on June 26, 1990.

Recent years ran hotter than those averages. The same NWS page lists a record 70 days at 110°F or more in 2024. It also lists a record run of 113 straight days at 100°F or more, from May 27 to September 16, 2024. The office's 2025 weather review calls 2025 the second warmest year in Phoenix records.

How should a Phoenix AC be sized?

Ask for a load calculation before you pick a size. Both local rebate programs require one. SRP's Cool Cash terms have the installer certify a cooling load estimate made with ACCA Manual J or an equivalent. Installed capacity must land within 15% or a half-ton of that estimate. The terms also call for airflow within 10% of the blower's rating, and refrigerant charge within 5% of the maker's figure.

You can ask any installer for the same checks, rebate or not. Efficiency Arizona goes further for the heat pumps it funds: Manual J for the load, Manual S for equipment selection, and ACCA's quality installation standards. Our guide to comparing HVAC quotes covers what a load report and an AHRI match should show.

Why EER2 matters in Phoenix

Look at EER2, not only SEER2. DOE's FAQ on the 2023 standards places Arizona in the "hot-dry" Southwest region. It defines EER as efficiency at peak load, "when it's working its hardest," measured at 95°F. DOE adds that EER matters most in hot-dry climates, where more high-temperature days make the AC work harder. Arizona installs since January 1, 2023 must meet these minimums, and DOE says putting in a unit below the regional level is against the law.

Do you need a cold-climate heat pump in Phoenix?

Heating is the small job here. NOAA's normals show 874 heating degree days a year, a January normal low of 46.0°F, and fewer than one night a year at 32°F or colder. The coldest reading on the NWS list is 16°F, from January 1913. DOE's heat pump page says that in moderate climates, heat pumps can be an efficient alternative to furnaces and air conditioners.

If your home heats with gas today, the state rebate rules matter. Since September 1, 2026, Efficiency Arizona no longer pays to replace gas equipment with electric, according to its program notice. Its FAQ says it can still fund a heat pump added alongside a gas furnace, as long as the furnace stays. For a winter breakdown, our guide to no heat in the house walks through the first checks.

What HVAC rebates are open in Phoenix right now?

Start with your electric utility. The City of Phoenix lists programs from two electric utilities, APS and SRP, along with Southwest Gas. APS publishes a service area map for the Phoenix metro area, and your bill shows which utility you have. The table sums up each program as its own pages described it on November 1, 2026.

SRP Cool Cash

SRP released a new Cool Cash application dated October 2026. It covers a heat pump, a central AC or an inverter-driven mini-split from 1 to 5 tons, with single-stage, multi-stage or variable-capacity compressors. You must be a permanent SRP residential customer living in a single-family detached home, a single-family attached home, or an apartment or condo.

On a split system, both the indoor air handler and the outdoor unit must be replaced, and the matched system must appear in the AHRI directory. Window units, new construction, and installs in garages or other non-habitable spaces do not qualify.

The contractor handles most of the paperwork. The installer must hold an Arizona license to install residential air conditioning and must sign the compliance section, per the program terms. Single-stage systems need the Manual J worksheet attached. You apply within six months of installation, with a dated paid invoice that shows the AHRI reference number. SRP may inspect the unit and hold the rebate until it passes. The limit is five rebates per customer.

The form does not print rebate amounts. It says current amounts and dates are at savewithsrp.com or on the Cool Cash line, (602) 264-3108. SRP's rebate pages blocked our requests, so we cannot quote today's figures; confirm the amount for your exact system before you sign. SRP's December 2025 news release also listed a Duct Test and Repair rebate covering 75% of repair costs, up to $400. Ask SRP whether that offer still stands.

APS

We found no APS rebate for a new central AC or heat pump. APS's savings page lists energy tips, instant rebates on items such as smart thermostats through its online Marketplace, and bill assistance. The rebates page in that section returned "page not found" when we checked. In December 2025 the Arizona Corporation Commission cut APS's efficiency budget by more than 50%, about $51 million. The programs it kept were Cool Rewards, tribal and school efficiency programs, a battery program, and limited-income weatherization.

Cool Rewards pays you to let APS nudge a smart thermostat on hot afternoons. Its program page lists a $50 one-time enrollment credit and a $35 credit each season, per thermostat. From June 1 to September 30 there may be up to 20 events. During one, the thermostat is set a few degrees higher for 2 to 3 hours, and you can override it. In July 2026 the Commission repealed the state's electric efficiency rules but said programs it had already approved will continue.

Southwest Gas

We found no furnace rebate from Southwest Gas. Its 2026 Arizona residential rebate application lists low-flow showerheads, front-load clothes washers and ENERGY STAR windows. The window rebate is $1.00 per square foot, capped at 75% of cost, and the home must have natural gas space heating. It covers purchases from January 1 to December 31, 2026, or until funds run out, with applications due by January 31, 2027. We read an archived copy of the form because swgas.com did not respond on November 1.

Efficiency Arizona

Arizona delivers the federal Home Energy Rebates as Efficiency Arizona, managed by the Governor's Office of Resiliency. It is income-based. Households above 150% of area median income are not eligible, per its eligibility page. You can also qualify through programs such as SNAP, LIHEAP or AHCCCS. For now the rebates go to homeowners who live in the home, not renters. You apply before any work starts, and a contractor from the program's network does the job.

The heat pump rebate is the HVAC piece. The products page lists 100% of cost up to $8,000 for households under 80% of area median income, and 50% up to $8,000 between 80% and 150%. A household can receive up to $14,000 in total. Under the rules in force since September 1, 2026, a rebated heat pump must replace electric heat or an older heat pump, or be added beside your current system. The program notice says rebates run through 2031, pending funding.

Federal rebates and the tax credit

DOE's Home Energy Rebates page says the rebates are available in select states and sends you to your state energy office. In Arizona that path leads to Efficiency Arizona. We did not find an open application for the whole-home HOMES rebate on its site. The federal tax credit is over for new systems. The IRS page for the Energy Efficient Home Improvement Credit limits it to improvements made through December 31, 2025, so a 2026 install in Phoenix does not qualify.

Do you need a permit to replace an AC in Phoenix?

Not always. The city's residential projects page lists "air conditioner repairs or replacements that don't increase size and capacity or change location" among projects that need no permit. The detail sits in the city's Work Exempt from Permit guide, section 105.2.3. It exempts repair or in-kind replacement of a refrigeration unit of 5 tons or less at a one- or two-family home, when the unit sits outdoors. The new unit must weigh the same as the one it replaces.

Three things pull a job back into a permit. Refrigeration systems inside a building need one, and the guide's commentary says that covers "all indoor installations for residential systems regardless of size." A switch to a different class of refrigerant needs one. Gas line changes need one too, per the residential projects page. If your system has an indoor coil or air handler, ask whether that part is being replaced.

That overlaps with the SRP rebate. Cool Cash requires replacing both the indoor and outdoor parts of a split system, and the city treats indoor refrigeration work as permit work. Ask the contractor whether your Cool Cash job needs a permit, and plan for it in the schedule and the quote.

The city's AC replacement counter guideline, revised September 10, 2026, shows how staff decide. Anyone asking for a permit-exempt AC replacement gets the questions below. A single "yes" means a permit is required.

1. Is the new unit in a different spot, on a different footprint, or heavier than the old one?
2. Do the duct penetrations move, or does any ductwork change?
3. Is the new unit sized differently, or does it deliver more than 2,000 CFM of air?
4. Does the outdoor air opening or the condensate piping change?
5. Does the new unit use a new refrigerant type, such as an A2L refrigerant?
6. Are any air conditioning components inside the building being repaired or replaced?
7. Does a gas burner's heating demand go up?
8. Does the new unit draw more amps, or need new wire or a new fuse size?

The refrigerant question is live in 2026. EPA's HFC restrictions by sector set a global warming potential limit of 700 for home AC and heat pump systems. Systems built entirely from parts made or imported before January 1, 2025 have no installation deadline, and EPA's May 2026 rule lets that older stock be installed until supply runs out. Ask which refrigerant the new system uses and whether it matches the old one. The answer can decide whether you need a permit.

Evaporative coolers have their own exemption: in-kind replacement of one rated at 6,500 cfm or less needs no permit under the same guide. An emergency swap in July does not skip the rules either. If the work needs a permit, the application is due within 72 hours. Exempt work must still meet code, and the guide makes the owner responsible for safe construction.

Settle who applies before work starts. The Arizona Registrar of Contractors says permits are the responsibility of the property owner, though many contractors put the permit and its fees in the contract. Write down who applies and who books the inspection. Questions go to Phoenix Planning and Development at 602-262-7811. These are City of Phoenix rules. If you live in another Valley city or in unincorporated Maricopa County, ask that building office.

How do you check an HVAC contractor's license in Phoenix?

Arizona licenses contractors through the Registrar of Contractors (ROC), and its Contractor Search shows each license record. ROC's licensing FAQ says a license is required when labor and materials exceed $1,000, or whenever a permit is required, whatever the price.

Check the classification, not just the name. ROC's classification list says the residential R-39 license covers installing and repairing comfort air conditioning, "including refrigeration, evaporative cooling, ventilating, and heating." It allows a new circuit on an existing panel but excludes a new service panel or sub-panel. The dual CR-39 license covers both commercial and residential AC work. A new panel is outside the R-39 scope. ROC's R-11 Electrical classification covers residential electrical work.

ROC's Before You Hire page adds these steps:

• Confirm the license class covers the work written in the contract.
• Call the phone number on the ROC license record to confirm the person quoting you works for that contractor.
• Get written estimates from at least three contractors, and name who obtains the permits.
• Never pay in cash, make checks out to the company named in the contract, and keep payments from running ahead of the work.
• Ask about insurance yourself. Apart from workers' compensation, ROC does not require insurance for a license.

A licensed residential contractor also comes with a backstop. ROC's Residential Contractors' Recovery Fund can pay up to $30,000 per residential property owner to have poor work corrected or finished, with each license covered up to $200,000. You must own and live in the home, or plan to. For a claim through ROC, your complaint must first lead to the contractor's license being suspended or revoked, and a claim on the contractor's bond must be decided. A court route also exists. Deadlines run two years. The fund covers licensed residential contractors only.

Company websites tell you less than they should. The table below sets our audit of Phoenix-area HVAC company websites that advertise on Google beside the figures for every city we measured. It shows how many sites hide their Google rating, how many offer no contact form, and how long the main content takes to appear on a phone.

Treat those gaps as your to-do list. Look the company up on Google Maps and read the newest reviews, including the one-star ones. If the site has no form, call the office. Ask for the ROC license number and classification, enter it in the Contractor Search, and call the number listed on that record before anyone comes out.

What should you do if you smell gas in Phoenix?

Southwest Gas is the gas utility on the city's list, and its safety page sets out the steps. The company adds mercaptan so that leaking gas smells like sulfur or rotten eggs. Act on the smell "even if it's faint or momentary," in the company's words.

1. Leave the building or area right away. Tell others to get out, and leave the doors open.
2. Do not smoke or use a lighter. Do not flip switches, touch the thermostat or appliance controls, start or stop an engine, or run an automatic garage door.
3. From a safe place, call 911 and Southwest Gas at 877-860-6020, day or night, whether or not you are a customer.
4. Stay out and wait. Southwest Gas says a representative will come as soon as possible.

Southwest Gas lists other signs: a hissing or roaring sound from pipes or a gas appliance, dirt or water blowing into the air, dead patches of plants, or standing water that keeps bubbling. If a carbon monoxide alarm sounds, its advice is to get into fresh air, call 911, and stay out until emergency officials say the building is safe. It also asks you to keep three feet clear around a furnace or water heater. For warning signs in a gas furnace, see our guide to a cracked heat exchanger.

Questions people ask