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Federal rebates for gas-to-electric heating conversions have ended — but electric-to-heat-pump upgrades still qualify. What changed

Tennessee home energy costs & incentives

Not launched — and when it does launch, the rebates will run through TVA's contractor network rather than a state portal.

Prices pulled August 16, 2026

What energy costs here

13.18¢

per kWh, residential electricity

24% below the national average of 17.3¢. 41st most expensive of 51.

Up 19% since 2021 (4.5% a year), against 27% nationally.

$1.14

per therm, residential natural gas

$11.84 per thousand cubic feet, 2025 annual. National average $1.48/therm.

Up 15% since 2021 (3.6% a year).

Heat pump vs. gas furnace — Heat pump favored

Tennessee's electricity-to-gas price ratio works out at 3.4-to-1. At these prices a heat pump should cost less to run than a gas furnace across the heating season, before counting the air conditioning it also replaces.

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.

What's different in Tennessee

Tennessee received a conditional federal award in January 2025 but says it must receive full approval and an executed agreement before it can launch. Its own page is unusually plain about what that means for you today: households looking for retrofit help right now cannot yet access these rebates.

The structure Tennessee has described is genuinely different from most states, and worth knowing in advance. Rather than a state-run application portal, households are expected to work through contractors in TVA's Quality Contractor Network, who handle the rebate process. If you are in Tennessee, the contractor you pick is not just doing the install — they are your route to the money.

That is a consequence of Tennessee's unusual utility landscape. Most of the state buys power from local power companies that distribute TVA electricity, so TVA already runs the residential efficiency programmes and already vets contractors. Leaning on that network is sensible, but it means your options are bounded by who is in it.

In the meantime, TVA and your local power company are the practical source of any residential efficiency incentive in Tennessee. Start there rather than waiting.

The two tracks will differ as they do elsewhere: whole-home efficiency open to any income but gated on a twenty per cent savings threshold, and the appliance and electrification track limited to households under 150% of area median income.

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.

Tennessee programs

Tennessee Home Energy Rebate Programs (TDEC) — not yet launched

Conditionally awarded but awaiting full federal approval and an executed agreement. TDEC states households cannot access these rebates yet.

Program details

TVA Quality Contractor Network

The expected delivery route once the rebates launch — contractors in the network are described as managing the rebate process, so your installer choice determines your access.

Program details

The federal position — the same everywhere

  • Residential Clean Energy Credit (Section 25D)Ended

    Ended. No credit for expenditures made after 31 December 2025.

  • Energy Efficient Home Improvement Credit (Section 25C)Ended

    Ended. No credit for property placed in service after 31 December 2025.

Full detail, sources and changelog on the national incentive tracker.

Where to check for your address

Your own utility is worth checking separately — utility rebates are often the largest remaining incentive and rarely appear in any central listing.

Not tax advice

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.

Run the numbers for your house

These open with Tennessee'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.

Guides behind these numbers

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