San Antonio HVAC Replacement: CPS Rebates and City Permits

In San Antonio, the air conditioner does most of the work. NOAA's 1991-2020 normals for San Antonio International show 3,148 cooling degree days a year against 1,438 heating degree days. CPS Energy pays $90 to $310 per cooling ton for a new central AC or heat pump. Inside city limits, the job needs a City mechanical permit, and CPS asks for its number.

What does San Antonio's climate mean for your AC and heating?

NOAA's annual normals file for the airport station, USW00012921, holds the counts that shape equipment choices. The monthly file sets out the shape of a normal year. August is the hottest month, with a normal high of 96.0°F. January is the coldest, with a normal low of 41.0°F.

Hot afternoons are where a system earns its rating. The Department of Energy's 2023 standards FAQ calls EER the efficiency of a system "when it's working its hardest," measured at 95°F. DOE says it is especially important in hot-dry climates with many high-temperature days. San Antonio's normal July and August highs sit right at that test point. DOE puts Texas in its "hot-humid" Southeast region, which has federal SEER2 floors but no EER2 floor. CPS Energy's rebate adds one, as the rebate section explains.

Size matters as much as rating. A 2013 DOE Building America guide says contractors sometimes oversize central air conditioners because they use rules of thumb, not load calculations. It tells them to use ACCA Manual J. The rebate adds a local temptation. CPS Energy pays per cooling ton, so a bigger unit brings a bigger check. Let the load calculation set the size, not the rebate. If a quote moves you up a ton, ask for the Manual J report behind it.

Ducts are the other place energy goes missing. The same DOE guide says duct losses can reach 30% or more of a furnace's heat when ducts are leaky, poorly insulated and run through an uninsulated attic or crawlspace. If yours run through the attic, ask whether the quote includes a leakage test. The guide calls for sealing joints with mastic and warns that cloth duct tape can dry out and fail within months.

Heat pump, gas furnace, or both?

Winters here are short, but they still bring frost. The DOE guide says a standard air-source heat pump's heating efficiency drops below about 35°F, so it often needs backup heat. All-electric models carry resistance strips. Dual-fuel systems pair the heat pump with a gas furnace. CPS Energy describes itself as a public power, natural gas and electric company, so ask whether your home already has a gas line before you price that second option.

The normal January low of 41.0°F sits above that 35°F mark, while the roughly 14 nights a year at 32°F or colder fall below it. If you heat with electric resistance alone today, the DOE guide says a heat pump can trim heating electricity by as much as 30% to 40%.

Plan for the rare bad week as well. The National Weather Service office for Austin and San Antonio logged 9°F at the airport on February 15, 2021, a record low for that date. The airport stayed below freezing for 4 days and 12 hours, one hour short of a 1951 record. Ask how the backup heat in your quote is sized for a stretch like that, and what it needs from your electrical panel.

What does CPS Energy pay for a new AC or heat pump?

CPS Energy funds its rebates through STEP, its Sustainable Tomorrow Energy Plan. The rebate application describes it as a five-year plan with $350 million to help homes save energy. The current program year covers work finished from February 1, 2026 through January 31, 2027. This is what each program said when we read it on November 3, 2026.

How the per-ton rebate is figured

The rebate specifications pay by cooling ton and SEER2 tier. CPS checks the rating against the AHRI certificate for your exact condenser, coil and furnace. It turns capacity into tons with its own chart. On the application, 33,000 to 38,999 BTUh counts as 3 tons, and 54,000 BTUh and up counts as 5.

Do the math before you pick a model. By CPS's table, a 3-ton system rated 17.1 SEER2 earns 3 times $250, or $750, as an early replacement. The same system after a breakdown earns $675. The biggest jump in both columns comes at 17.1 SEER2. The rebate can never exceed what the project cost.

Early replacement pays $10 to $35 more per ton, but only with proof. The application requires the old system to be running. A central system must be under 25 years old, and a heat pump under 20. You also need photos plus model and serial numbers for the old condenser, coil and furnace. Without them, CPS pays the burnout rate. Photograph the old nameplates before the crew hauls anything away.

CPS's efficiency floors go one step past federal law. The CPS chart matches the federal SEER2 minimums for Texas: 14.3 for most systems, and 13.8 for central ACs of 45,000 BTUh or more. It then adds EER2 minimums of 11.7, or 11.2 for the larger ACs, which drop to 9.8 for systems rated 15.2 SEER2 or higher. Heat pumps also need 7.5 HSPF2. DOE's FAQ shows EER2 floors for the Southwest only. Ask to see each of these ratings on the AHRI certificate for your exact match.

The paperwork runs on a clock. CPS's terms give you 30 days from completion to file. The invoice must list the model and serial number of each new piece, the install date and the total paid. The work must be a full one-for-one system replacement in an existing home, from a single-family house up to a fourplex. For jobs inside city limits, CPS requires the City permit number. A bill credit takes 2 to 3 weeks, and a check takes 8 to 12. The program ends when the money runs out.

Two more lines in those terms protect you. The installer must hold a Texas HVAC contractor license and must "secure and pay for all permits." If you assign the rebate to your contractor, CPS requires the discount to show as a credit on your invoice.

Tune-ups, thermostats and Casa Verde

The High-Performance A/C Tune-up costs nothing if you qualify. It covers ducted central ACs and heat pumps at least one year old in single-family homes. Mini-splits and window units are out, and so is anyone who had this tune-up in the past five years. The visit measures airflow and refrigerant charge, cleans the outdoor coil, and inspects the indoor coil and blower. You supply the filter.

The tune-up needs at least 55°F outside, so winter slots are limited. CPS says you do not have to buy any repair the technician suggests, and it encourages several quotes before major work.

CPS's WiFi Thermostat Rewards page lists $85 per enrolled thermostat, then $30 for each year you stay in. In return, CPS may adjust your setting a few degrees during summer "conservation events," usually between 1 p.m. and 10 p.m. on weekdays. You can override any event. Thermostats that CPS installed do not earn the credits. When we checked, the page said enrollment opens in mid-November.

For income-qualified households, Casa Verde rebates the cost of eligible upgrades. The list includes duct sealing and repair, central AC tune-ups, WiFi thermostats, insulation and window AC replacement. The program page does not list a new central system. You qualify through income, an energy burden of 10% or more, or income-based assistance. The 2026 income limit for a household of four is $5,550 a month. Homeowners and renters can both apply. Questions go to 210-353-CASA (2272).

State and federal money

Texas has not opened the federal Home Energy Rebates. The State Energy Conservation Office's FAQ says the programs "are being designed during fall 2026." It adds that a launch date "has not been set and will depend on DOE approval of the final program design." Texas cannot accept receipts, and projects started or finished before launch are unlikely to qualify. DOE's program page sends homeowners to their state energy office. If anyone quotes you a HOMES or HEAR rebate in San Antonio today, ask to see the program document.

The federal tax credit is gone for new systems. The IRS says the Energy Efficient Home Improvement Credit applies to improvements made through December 31, 2025. A system installed in 2026 does not qualify.

Do you need a permit to replace an AC or furnace in San Antonio?

Yes, inside city limits. The Development Services Department's home remodeling FAQ says a permit is required to install HVAC equipment, and that only state-licensed contractors can get mechanical permits. The City's FY 2027 fee schedule, revised in October 2026, says a Texas state mechanical license "is required to perform Mechanical work in the City of San Antonio." HVAC work does not appear on the City's No Permit Required list.

So your contractor pulls the permit, not you. The City's Residential Permits page tells homeowners to use licensed trade contractors for HVAC work. It says trade contractors may get trade permits on the homeowner's behalf.

Here is how that adds up for a common job. With the base fee, a gas furnace, an indoor coil and an outdoor condensing unit come to $82.92 on the fee schedule. The two 4% surcharges bring it to about $89.55. Paying by card adds 3%. The schedule also prices "replacement of any device which originally required a permit," so a swap is not exempt. If you want the CPS rebate, its terms put the permit cost on the installer.

The application, revised in September 2026, asks for the contractor's state license number, class and endorsements, and the new system's SEER2 rating. The contractor initials a line agreeing to work only on equipment allowed under the license class and endorsements registered with TDLR. Inspections can be booked free in the BuildSA portal or by phone at (210) 207-1111.

1. Before you sign, ask who pulls the City permit and whether the fee is in the price.
2. If the new system is a different size from the old one, ask for the Manual J load calculation.
3. Get the permit number before work starts. CPS needs it for the rebate on jobs inside city limits.
4. If you are claiming early replacement, photograph the old system's nameplates first.
5. Hold the final payment until the inspection passes.
6. File the CPS rebate within 30 days of completion.

These are City of San Antonio rules. CPS serves San Antonio and parts of seven neighboring counties, its newsroom profile says. If your home sits in another city or in unincorporated county land, ask that office what it requires. The CPS form asks for permit details only on City of San Antonio jobs.

How do you check a San Antonio HVAC contractor's license?

Start with the state record. TDLR says anyone who installs, repairs or maintains air conditioning, refrigeration or heating systems must hold its license. In the License Data Search, pick "Air Conditioning Contractors" and enter a license number, name, city or county. It shows active licenses only. If a number does not come up, TDLR asks you to call 800-803-9202.

Two more TDLR tools help. The final orders search lists penalties and sanctions from the current and two prior fiscal years. The complaint page takes reports online or by mail.

Read the number itself. TDLR's ACR Contracting at a Glance gives the format TACL, class, number and endorsement code, as in TACL/A/000000/C. Class A covers any size of unit. Class B covers cooling up to 25 tons. TDLR says E, environmental air conditioning, includes central air conditioning and heating, so a home job calls for E or C. C means the contractor holds both endorsements. The sheet adds that a registered technician needs no exam and must work under a licensed contractor.

The City keeps its own record too. DSD's mechanical contractor page says a contractor must register the state license with the City to receive a permit. That takes a photo ID, the state license card and proof of liability insurance. Registrations expire every December 31. The City no longer issues its own mechanical licenses, though it honors existing ones.

You should not have to hunt for the number. Texas rule 16 TAC 75.71 puts it on both sides of work vehicles, in letters at least two inches high. It must also appear on advertising and on every proposal and invoice. The company must give you an invoice for all air conditioning and refrigeration work.

A company's own website is a weaker guide than these records. We audited the websites of HVAC companies that advertise on Google in the San Antonio area. The table below puts them next to our national figures. It counts the sites that show no Google rating and the sites with no contact form, and it shows how slowly the pages load on a phone. It covers advertisers only, not every contractor in town.

Treat each gap as a prompt. When a site shows no rating, find the company on Google Maps and read the newest reviews, low ones included. When there is no form, phone the office. Either way, ask for the TACL number, run it through the TDLR search, and confirm the company will pull the City permit. To compare bids line by line, see our guide to reading HVAC quotes.

What should you do if you smell gas in San Antonio?

CPS Energy is also the gas utility here. Its natural gas safety FAQ lists the signs of a leak: a rotten-egg odor from the added mercaptan, a hissing or roaring sound, and dead plants, blowing dirt or bubbling water outdoors. It gives these steps.

1. Leave the building right away, and leave the door open on your way out.
2. Do not switch anything electrical on or off. Do not use a phone or flashlight inside, light a flame, or open the garage door.
3. From another location, call 911 and CPS Energy at 210-353-HELP (4357).
4. Stay away until it is safe to return. If you are outdoors when you smell it, leave the area.

Never heat the house with the oven or range. CPS warns that doing so can produce carbon monoxide. Its home safety page says to put a CO detector near where your family sleeps. If you suspect CO, CPS says to open windows, shut off the furnace and other fuel-burning appliances, and call 210-353-4357.

The CPSC lists headache, dizziness, weakness, nausea and confusion among the symptoms of CO poisoning. If you suspect it, the CPSC says to get outside to fresh air immediately, then call 911. For the furnace side of this, see our guide to furnace carbon monoxide.

Questions people ask