If you've been on the fence about upgrading to a heat pump, you're not alone. Heat pump installations across Utah have surged in recent years — driven largely by a coordinated push from state utility programs that put real money back in homeowners' pockets. The good news: the most powerful local rebate programs are still running strong in 2026. The catch: the federal tax credit that many Utah homeowners were counting on expired at the end of 2025. This guide breaks everything down so you know exactly where the money is, what's changed, and how to get the most out of every dollar available to you right now.
Why Utah Homeowners Are Switching to Heat Pumps
A heat pump does what your current furnace and air conditioner do — but in a single, highly efficient system. Instead of burning fuel to generate heat, it moves heat from one place to another, making it two to three times more efficient than traditional electric resistance heating. In Utah's climate, where winters are cold but not extreme, modern cold-climate heat pumps perform exceptionally well year-round. Lower utility bills, a single system to maintain, and a smaller carbon footprint are all solid reasons to make the switch. Add in the rebate programs below, and the financial case becomes even harder to ignore.
Rocky Mountain Power Wattsmart Rebates (Active in 2026)
Rocky Mountain Power customers in Utah can receive up to $2,000 cash back through the Wattsmart Homes program for qualifying heat pump installations. This is a direct rebate — real money sent to you after your system is installed — and it remains available right now. Here is how the program breaks down:
- Air source heat pump upgrade: up to $1,700 cash back
- Dual fuel, ductless, or ground source heat pump conversion: up to $2,000 cash back
- Smart thermostat add-on: up to $100 additional rebate
To qualify, you must be a residential Rocky Mountain Power customer on rate schedules 1, 2, or 3, and the installation must be in an existing home. Applications must be submitted within 90 days of project completion through the Wattsmart portal at rockymountainpower.net. Rocky Mountain Power also updated its Wattsmart Homes program effective February 27, 2026, introducing new offerings for appliances, heat pumps, and weatherization measures — so if you haven't checked the current incentive list lately, it's worth a fresh look.
Pro tip: Salmon HVAC is familiar with the Wattsmart program and can walk you through the documentation your contractor invoice needs to include to avoid any processing delays on your rebate application.
Enbridge Gas ThermWise Rebates (For Natural Gas Customers)
If your home currently uses Dominion Energy — now operating as Enbridge Gas in Utah — you may qualify for ThermWise rebates that work alongside a heat pump installation. ThermWise is primarily a natural gas efficiency program, so it's most relevant for homeowners installing a dual-fuel system (a heat pump paired with an existing gas furnace as backup) or making weatherization improvements at the same time.
ThermWise rebates available to Utah homeowners include weatherization measures like attic insulation and air sealing, as well as high-efficiency gas appliance upgrades. These are particularly valuable when combined with a heat pump project because improving your home's envelope directly reduces the heating and cooling load your new system has to carry — meaning even bigger energy savings month to month. For rebate amounts and to check current qualification requirements, contact the ThermWise Rebate Hotline at 1-877-932-0610 or visit thermwise.com.
The Federal 25C Tax Credit — What You Need to Know
Here's the update every Utah homeowner needs to hear in 2026: the federal Energy Efficient Home Improvement Tax Credit (Section 25C) expired on December 31, 2025. Congress did not extend it when it passed the One Big Beautiful Bill Act, which set that hard deadline. If you installed a qualifying heat pump before the end of 2025, you can still claim up to $2,000 (30% of installation costs, capped at $2,000) when you file your 2025 federal tax return using IRS Form 5695. That's real money you don't want to leave on the table.
For heat pump installations completed in 2026 or later, the 25C credit is no longer available. What this means practically: the utility rebates from Wattsmart and ThermWise become even more important now that the federal backstop is gone. The good news is that those programs were always independent of the federal credit — you didn't have to choose between them — and they remain fully in effect today.
One important note: if you installed a geothermal (ground source) heat pump by December 31, 2025, a separate credit — the Section 25D Residential Clean Energy Credit at 30% with no dollar cap — was also available for that tax year. Check with your tax advisor if this applies to your situation.
How to Stack Your Utah Heat Pump Savings (2026 Strategy)
For homeowners installing a heat pump in 2026, here is how to maximize what's still available. Start by confirming whether you're a Rocky Mountain Power customer — if you are, the Wattsmart rebate of up to $2,000 is your biggest single source of savings. If your home also uses Enbridge Gas and you're making weatherization improvements at the same time, stack a ThermWise rebate on top of that. Between both programs, a Utah homeowner upgrading to a dual-fuel heat pump system with insulation improvements could recover $2,500 or more in direct rebates, before even factoring in the long-term savings on monthly energy bills.
The process works like this: your HVAC contractor installs the qualifying system, provides you with a detailed invoice, and you (or your contractor) submits the Wattsmart application within 90 days. For ThermWise, certain weatherization measures must be installed by a ThermWise-authorized contractor, so confirm this credential before scheduling that work. Salmon HVAC can help coordinate the paperwork and make sure every box is checked.
Frequently Asked Questions
Can I still claim the federal heat pump tax credit in 2026?
Only if your heat pump was installed and placed in service on or before December 31, 2025. If that's the case, you can claim the credit on your 2025 federal tax return using IRS Form 5695. For any installation completed in 2026 or later, the 25C credit has expired and is no longer available.
How do I know if I'm a Rocky Mountain Power or Enbridge Gas customer?
Check your utility bills. Rocky Mountain Power handles your electric service; Enbridge Gas (formerly Dominion Energy) handles your natural gas service. Many Utah homes have both, which means you may qualify for rebates from each program simultaneously.
Do I have to use a specific contractor to get the Wattsmart rebate?
Rocky Mountain Power does not require you to use a certified Trade Ally to receive the residential Wattsmart rebate, but working with a contractor who is familiar with the program requirements helps ensure your invoice includes all the information needed for a smooth application. Trade Ally contractors are available if you want a contractor who can handle the submission on your behalf.
Can I get a rebate if I'm replacing an old heat pump (not switching from a furnace)?
Yes. The Wattsmart program covers both conversions from other heating systems and replacement of existing heat pumps, as long as the new equipment meets the efficiency requirements and the home is an existing residence — not new construction.
How long does it take to receive the Wattsmart rebate check?
Rocky Mountain Power typically issues rebate checks within 14 business days after reviewing and approving a complete application. Missing documentation is the most common cause of delays, so double-check your invoice includes the equipment model number, efficiency ratings, and installation date before submitting.
What efficiency requirements does my heat pump need to meet?
Requirements vary by equipment type and are updated periodically by Rocky Mountain Power. As a general benchmark, qualifying air source heat pumps typically need to meet or exceed CEE (Consortium for Energy Efficiency) tier standards. Your Salmon HVAC technician can confirm whether the system being proposed for your home meets current program requirements before installation.
Ready to Start Saving? Salmon HVAC Can Help.
Navigating rebate applications, efficiency requirements, and contractor paperwork can feel overwhelming — but it doesn't have to be. Salmon HVAC serves homeowners throughout Salt Lake City, Centerville, Bountiful, South Jordan, and northern Utah, and our team is up to date on every active rebate program available to you in 2026.
Give us a call or request a free estimate online. We'll walk you through which programs you qualify for, recommend the right heat pump system for your home and budget, and make sure your installation is documented correctly so your rebate application goes through without a hitch.
