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

Wisconsin home energy costs & incentives

One of the four states where gas is clearly cheaper to run than a heat pump — and also one running the federally funded Home Energy Rebates, which is what closes the gap.

Prices pulled August 16, 2026

What energy costs here

18.16¢

per kWh, residential electricity

5% above the national average of 17.3¢. 16th most expensive of 51.

Up 25% since 2021 (5.8% a year), against 27% nationally.

$1.04

per therm, residential natural gas

$10.74 per thousand cubic feet, 2025 annual. National average $1.48/therm.

Up 10% since 2021 (2.5% a year).

Heat pump vs. gas furnace — Gas favored on running cost

Wisconsin's electricity-to-gas price ratio works out at 5.1-to-1. At these prices a gas furnace is likely cheaper to run through winter. A heat pump can still win on total cost if it replaces an aging air conditioner too, or if you have solar.

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 Wisconsin

Focus on Energy is the statewide program, delivered in partnership with Wisconsin utilities. It covers heating and cooling rebates, insulation and air sealing, smart thermostats, water heating, home solar and energy assessments, and works through a network of vetted Trade Ally contractors.

Focus on Energy also lists the federally funded Home Energy Rebates among its programs, which makes Wisconsin one of the states where those are actually running rather than still pending. Those are income-qualified and require approval before installation — check eligibility before you commit to a job.

Be clear-eyed about the running-cost picture: at Wisconsin's electricity and gas prices a gas furnace is cheaper to run through winter. A heat pump can still make sense here — it replaces your air conditioning too, and rebates cut the upfront gap — but it is not a bill-reduction move on its own the way it is in Oregon or the South.

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.

Wisconsin programs

Focus on Energy

Statewide efficiency program run with Wisconsin utilities: HVAC and heat pump rebates, insulation, smart thermostats, solar, assessments, and the federally funded Home Energy Rebates.

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 Wisconsin'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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