Federal rebates for gas-to-electric heating conversions have ended — but electric-to-heat-pump upgrades still qualify. What changed
The state rebates have not launched, but Iowa's largest utility already does the thing the federal programme is trying to do.
Prices pulled August 16, 2026
13.72¢
per kWh, residential electricity
21% below the national average of 17.3¢. 36th most expensive of 51.
Up 8% since 2021 (1.9% a year), against 27% nationally.
$1.02
per therm, residential natural gas
$10.61 per thousand cubic feet, 2025 annual. National average $1.48/therm.
Up 4% since 2021 (1% a year).
Heat pump vs. gas furnace — Close call
Iowa's electricity-to-gas price ratio works out at 3.9-to-1. At these prices the two land near each other on running cost, which puts the decision on installation cost, whether your AC also needs replacing, and how cold your winters get.
Below roughly 3.5-to-1 a heat pump usually wins on running cost; above roughly 5-to-1 a furnace may be cheaper through winter. How that comparison works · run it with these rates
State averages from the U.S. Energy Information Administration (electricity, gas), pulled 2026-08-16. Real bills vary substantially by utility within a state, and by rate plan within a utility — check a recent bill for your own numbers before relying on any of this. The heat pump verdict above follows from these averages, so it moves if your rates differ.
Iowa has a conditional federal award and has published no application mechanics. Nothing has launched and no date is committed.
Meanwhile MidAmerican already runs instant discounts applied at the point of sale by a participating heating and cooling contractor, with no paperwork for the homeowner at all. That is the same mechanic the federal programme has spent years trying to build, working today. If you are on MidAmerican, that is where to start.
It runs alongside conventional post-purchase rebates for efficient appliances and thermostats, which do require you to submit — and those carry a deadline measured from the purchase date, so the receipt matters. File promptly rather than at tax time.
The distinction is worth internalising because it changes how you shop. For the instant discount, you must go through a participating contractor and the saving appears in the price. For the appliance rebates, you buy where you like and claim afterwards. Confusing the two loses money in both directions.
Iowa's climate is heating-dominated with heavy reliance on gas and propane furnaces, so envelope work and HVAC are where the returns are. Propane customers in particular should run the numbers on a heat pump carefully — propane is usually the fuel where the electricity comparison looks most favourable.
Check with the administrator before you sign anything. Program budgets run out, terms change without notice, and most require approval before work starts — a rebate you apply for afterwards is usually a rebate you don't get. Treat this page as a starting point for your own call, not as confirmation that you qualify. We last checked these programs on August 16, 2026.
Instant discounts applied at the point of sale by a participating contractor with no homeowner paperwork, plus separate post-purchase rebates for efficient appliances and thermostats that must be submitted within a deadline.
Program detailsThe state's hub for residential efficiency programmes and the not-yet-launched federal rebates.
Program detailsEnded. No credit for expenditures made after 31 December 2025.
Ended. No credit for property placed in service after 31 December 2025.
Full detail, sources and changelog on the national incentive tracker.
Your own utility is worth checking separately — utility rebates are often the largest remaining incentive and rarely appear in any central listing.
Everything here is general information gathered from public sources. It is not tax, financial or engineering advice, and it cannot account for your utility, your income, your equipment or your return. Energy prices are state averages that move; program terms and budgets change without notice. Confirm anything you plan to budget around directly with the program administrator, your utility and a licensed professional before you commit money.
If you find something on this page that is out of date, tell us at minchangyi@me.com and we will correct it.
These open with Iowa's average rates already filled in. Correct them from a recent bill before you rely on the result — state averages hide a lot of variation between utilities.
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