Rebate Program

Cotton Electric offers a rebate when members purchase and install certain energy efficient equipment

Cotton Electric has announced standards for the 2025 Rebate Program for the purchase and installation of certain energy-efficient equipment and fuel conversion measures. The program expanded in recent years to include rebates for air source heat pumps, mini-splits and water heaters installed under certain conditions. Rebate funds are available on a first-come, first-served basis. Once rebate funds have been exhausted, the program will end for the year.

The maximum rebate in 2025 will be $4,000 per residence. Heat pumps and mini-splits must be installed by a licensed contractor. Indoor and outdoor equipment must be replaced at the same time. Members will need to provide a REBATE APPLICATION, a copy of their itemized invoice and, from the HVAC contractor or supplier, AHRI certification and Manual J calculation in order to qualify for the program. Verification by Cotton Electric personnel and an Energy Efficiency Home Evaluation are also required to receive the rebate.

Rebates are paid on new installations or GSHP to GSHP replacements. A desuperheater is not required but additional rebates are available if one is part of a GSHP installation. Minimum standards vary for closed and open loop installations and apply to the full load operation of a GSHP, not the partial load. The amount of rebate is determined by the size of each unit, its Energy Efficiency Rating (EER) and Coefficient of Performance (COP).

Qualifying units can receive a rebate of up to $750 per ton installed if the unit meets the minimum specifications, which are 15.9 EER and 3.3 COP for closed loop systems and 15.9 EER and 3.6 COP for open loop. To qualify for a rebate when replacing an existing GSHP system with another GSHP system, the new installation must increase the EER by at least 3.0. The minimum specification for COP is 3.3 for closed loop systems and 3.6 for open loop. Rebates are $300 per ton.

Rebates are paid on replacement of existing heat pumps, new construction or conversion from natural gas or propane furnaces to total electric heat pumps. Rebates are per unit, not per ton. To qualify, units must meet standards that vary with the Seasonal Energy Efficiency Ratio (SEER) rating.

A unit with a 17.00 to 17.99 SEER must have an SEER2 of 16.2 to 17.1. Rebates are $500 per unit for a replacement and $750 per unit for a fuel conversion or new construction. A unit with an 18.00 to 19.99 SEER must have an SEER2 of 17.2 to 19.0. Rebates are $600 per unit for a replacement and $850 per unit for fuel conversion or new construction. A unit with 20.00 or greater SEER must have an SEER2 of 19.1 or higher. Rebates are $750 per unit for a replacement and $1,000 per unit for fuel conversion or new construction.

Rebates are offered for heat pump water heaters replacing traditional resistance water heaters. Conversion from natural gas or propane to an electric, and new construction projects, also qualifies for a rebate.

Rebates are $250 per unit for a replacement and $500 per unit for a fuel switching or new construction. Water heaters should have a minimum 40-gallon capacity, an energy factor of 2.8 or greater and a manufacturer’s warranty of 10 years or greater. Tankless water heaters are not eligible.

Collecting the rebate requires a REBATE APPLICATION, AHRI reference sheet, invoice or receipt dated after Jan. 1, 2025, and an inspection by Cotton Electric.

To arrange an inspection or for information to make sure your purchase is eligible, please contact Heath Morgan, Cotton Electric’s energy efficiency coordinator, at 580-875-3351 or 800-522-3520.

Cotton Electric offers a rebate when members purchase and install certain energy efficient equipment

Ground Source Heat Pumps (GSHP)

Air Source Heat Pumps / Mini Splits

Heat Pump Water Heaters