Homeowners considering a new air-conditioning system, insulation, energy-efficient windows, a heat pump water heater or rooftop solar have an important step to take before signing a contract: verify which incentives are currently available for their specific address.

As of September 9, 2026, Texas’ statewide Home Efficiency Rebates and Home Electrification and Appliance Rebates have not launched. The better-known federal homeowner energy credits also ended for new qualifying projects after December 31, 2025.

That does not mean every opportunity to save has disappeared. For homeowners in Barker, current assistance may still be available through the electric utility serving the property, participating contractors or other local efficiency programs. The key is confirming eligibility before work begins—not relying on a national advertisement, an old article or a contractor’s general promise.

Texas HOMES and HEAR rebates are not available yet

The Texas Comptroller’s State Energy Conservation Office reports that the Texas Home Energy Rebates remain in the planning and design phase. Rebates are not currently available, and the state has not announced a launch date.

The two future programs are:

• Home Efficiency Rebates, commonly called HOMES: Designed to support comprehensive, whole-home energy-saving improvements. Households at all income levels are expected to be eligible, with potential rebates of up to $8,000 based on household income and projected energy savings.
• Home Electrification and Appliance Rebates, or HEAR: Intended to help income-qualified households purchase certain efficient electric appliances and related upgrades. Potential rebates could reach $14,000 per household, depending on the eligible technologies installed.

These are future program limits—not rebates available for a September 2026 project. Homeowners should be cautious if someone claims to be an approved Texas HOMES or HEAR contractor or promises that state rebate money is already available.

Residents interested in either program can join the mailing list on the SECO website to receive official updates.

Federal homeowner energy credits ended after 2025

Federal tax incentives also changed significantly this year. According to the IRS instructions for Form 5695, homeowners cannot claim the Residential Clean Energy Credit for expenditures made after December 31, 2025. The Energy Efficient Home Improvement Credit also cannot be claimed for expenditures made—or qualifying property placed in service—after that date.

The timing rule deserves careful attention. For these credits, the IRS generally treats an expense as paid when the original installation is completed. Signing a contract or paying a deposit during 2025 generally would not preserve a credit for equipment installed in 2026.

Homeowners organizing records for qualifying work completed in 2025 may still use Form 5695 when preparing their 2025 federal income tax returns.

For eligible property placed in service from 2022 through 2025, the Residential Clean Energy Credit generally equaled 30% of qualifying costs. That credit covered eligible improvements such as solar electric systems, solar water heating systems, geothermal heat pumps, small wind-energy systems and qualifying battery storage.

The Energy Efficient Home Improvement Credit provided a general annual limit of up to $1,200 for qualifying improvements, with individual limits applying to certain products. Heat pumps, heat pump water heaters, biomass stoves and biomass boilers had a separate combined annual limit of up to $2,000.

An unused Residential Clean Energy Credit from 2025 may be carried forward to 2026. The Energy Efficient Home Improvement Credit does not have the same carryforward provision.

Avoid these mistakes when reviewing a 2025 project

Homeowners sorting through receipts and project records should make sure they are using the correct cost when calculating a potential federal credit.

The IRS explains that rebates generally reduce the purchase price or cost used to calculate a credit. A nontaxable public-utility subsidy may also reduce the eligible cost, including when the utility pays the subsidy to a contractor on the homeowner’s behalf.

Because the treatment can depend on the type of incentive received, homeowners should keep documentation for utility rebates, manufacturer promotions, contractor discounts and other subsidies associated with a 2025 project.

Another common mistake is assuming that any product labeled “energy efficient” automatically qualified. For specified products placed in service during 2025, taxpayers claiming the Energy Efficient Home Improvement Credit must report a four-character qualified manufacturer identification number, or QMID.

Homeowners reviewing a 2025 installation should gather:

• The contractor’s final invoice
• The installation completion date
• Exact product and model numbers
• Manufacturer certification information
• Any required QMID
• Utility or manufacturer rebate records
• Proof of payment

A product’s marketing label alone does not establish eligibility for a federal tax credit.

Home energy audits have specific requirements

Not every contractor walk-through qualifies as a home energy audit for tax purposes.

For an eligible audit completed in 2025, the IRS required an inspection and written report identifying the home’s most significant and cost-effective energy-efficiency improvements. The report also needed to estimate the energy and cost savings associated with each recommended improvement.

The audit had to be conducted by—or under the supervision of—a qualified home energy auditor certified through an approved program. The written report also needed to include specific information about the auditor and the applicable certification program.

Homeowners who paid for an audit in 2025 should review the completed report rather than assuming that a consultation or informal inspection met the federal requirements.

Local utility incentives may still be available

Although the statewide Texas programs and federal credits are no longer available for new 2026 projects, some electric utilities continue to offer their own residential energy-efficiency programs.

Depending on the utility serving the home, current options may include incentives or assistance for:

• Central air-conditioning systems
• Heat pumps and heat pump water heaters
• Attic insulation and air sealing
• Smart thermostats
• AC tune-ups
• Solar installations
• Solar screens
• Cool roofs
• Pool pumps
• Home weatherization
• Home energy assessments

These programs are not determined by a homeowner’s city, ZIP code or county alone. Eligibility typically depends on the electric account attached to the property.

For that reason, Barker homeowners should identify the transmission utility, municipal utility or electric cooperative serving their address before comparing incentives. Two nearby neighborhoods may have different programs even when residents use contractors from the same regional companies.

Some programs issue rebates directly to customers. Others provide incentives through approved contractors or participating service providers. Funding may also be limited, offered on a first-come, first-served basis or subject to change during the program year.

Check HOA guidelines before scheduling the work

Utility eligibility, contractor approval and HOA approval are separate parts of the process. Before work begins, residents should review their community’s governing documents and architectural guidelines to determine whether the planned improvement requires an application through the HOA or community management team.

Architectural review requirements may apply to visible or structural changes such as:

• Rooftop solar panels
• Exterior HVAC equipment
• New or relocated utility components
• Replacement windows
• Roof modifications and penetrations
• Generator or battery-storage equipment
• Exterior wiring, conduit or electrical panels

Residents planning to install solar panels should not assume that utility approval, a city permit or a contractor’s recommendation replaces the community’s architectural review process. The HOA may require an application showing the proposed system’s location, panel arrangement, equipment placement, mounting method or other project details.

Submitting the required information before signing a final installation schedule can help prevent delays, unexpected revisions or compliance concerns. Homeowners should allow enough time for the HOA or community management team to review the application and should obtain any required written approval before work begins.

Verify eligibility before the project begins

Before accepting a proposal, homeowners should ask the utility or program administrator several questions:

• Is this property address eligible?
• Is the proposed equipment or improvement covered?
• Does the program require an approved or participating contractor?
• Must an application be submitted before installation?
• Is a pre-project assessment or inspection required?
• Will there be a post-installation inspection?
• Who receives the incentive—the homeowner or contractor?
• Is funding still available?
• What product, model-number and efficiency documentation must be retained?
• When should the rebate appear, and how will it be delivered?

Contractors may help explain available programs, but homeowners should independently confirm the requirements with the utility or program administrator before treating an incentive as part of the project budget.

Keep the paperwork in one place

Before replacing equipment or approving other efficiency work, create a folder containing the past 12 months of utility bills, the contractor’s written estimate, exact equipment model numbers and the complete terms for every proposed rebate or incentive.

Homeowners should also verify whether the project requires permits, utility approval, an HOA architectural application or inspections. HVAC replacements, electrical-panel upgrades, rooftop solar, battery storage, roof penetrations and gas-line modifications can involve requirements that extend beyond the incentive program itself.

Anyone trying to determine whether work completed in 2025 qualifies for a federal tax credit—or how a rebate or subsidy affects that claim—should consult a CPA, enrolled agent or other qualified tax professional.

The most important takeaway is simple: incentives that were widely promoted in previous years may no longer apply to work performed in 2026. Check the utility serving the property, read the current program rules and obtain written confirmation before counting a rebate as part of the project’s financing.

By Tiffany Krenek, My Neighborhood News 

Tiffany Krenek has been on the My Neighborhood News team since August 2021. She is passionate about curating and sharing content that enriches the lives of our readers in a personal, meaningful way. A loving mother and wife, Tiffany and her family live in the West Houston/Cypress region.