The rebate in one paragraph
TVA EnergyRight, the efficiency program run by the Tennessee Valley Authority with its local power companies, pays a rebate on qualifying heat pumps. It is $500 at 15 SEER2 and $800 at 17 SEER2.
Bluffline Memphis Heat Pumps shows the tier each option falls in on every estimate, so you can see what the rebate changes.
The amounts
| What qualifies | TVA EnergyRight payment |
|---|---|
| Heat pump rated 15 SEER2 or higher | $500 |
| Heat pump rated 17 SEER2 or higher | $800 |
| Duct sealing and insulation | $300 |
| HVAC tune-up | $50 |
Who qualifies
The rebate is for customers of TVA power companies, the local utilities that buy their power from TVA.
Around Memphis
- MLGW customers in Memphis and most of Shelby County, including Germantown, Bartlett, Collierville and Millington.
- Northcentral Electric Power Association customers, which include parts of Olive Branch in DeSoto County, along with other areas of north Mississippi that Northcentral serves.
Who doesn’t
- Entergy Mississippi customers in Southaven, Horn Lake, Hernando and parts of Olive Branch. Entergy Mississippi runs its own heating and cooling incentive program.
- West Memphis Utilities and other Arkansas utilities that aren’t TVA distributors.
Your power bill shows which utility you are on. Our Olive Branch page covers the town that is split between the two.
The contractor rule
TVA requires the work to be done by a member of its Quality Contractor Network and to meet TVA’s standards on the installation date. The contractor submits the rebate.
What that means for you
- Ask before you sign whether the contractor is a current member of the Quality Contractor Network.
- Expect an inspection or documentation step; TVA’s standards cover sizing, installation and start-up.
- Don’t count the rebate on an estimate until eligibility is confirmed for your address and equipment.
The estimate we write names the rebate tier and whether it applies to your address.
Choosing the tier
The jump from 15 to 17 SEER2 adds $300 to the rebate. Whether it is worth it depends on the price difference between the two units and how hard your house runs the AC.
When 17 SEER2 tends to pay
- Houses that run the AC from May to October, where the efficiency gain compounds.
- Variable speed or two-stage systems, which usually clear 17 SEER2 anyway.
- Good ducts, so the efficiency isn’t lost to leaks.
When 15 SEER2 is enough
- Small houses with modest cooling loads.
- Dual fuel systems where gas carries most of the winter.
- Poor ducts that aren’t being fixed, which waste part of any rating.
SEER2 and HSPF2 explained covers what the ratings mean.
Two quotes, two tiers
Here is how the rebate changes a comparison between two otherwise similar quotes on an MLGW house. The prices are examples chosen from inside Bluffline’s typical $8,000 to $16,000 range for a whole system:
| Option A | Option B | |
|---|---|---|
| Rating | 15.2 SEER2, single-stage | 17.5 SEER2, two-stage |
| Installed price | $9,400 | $11,200 |
| TVA EnergyRight rebate | $500 | $800 |
| Price after rebate | $8,900 | $10,400 |
| Difference after rebate | $1,500 more |
Reading it
The higher tier narrows the gap by $300, from $1,800 to $1,500. Whether the remaining $1,500 is worth it depends on summer run hours, humidity and how long you plan to stay. In a two-story house that runs damp upstairs, the two-stage unit’s longer, slower runs may be the bigger reason to choose it.
From estimate to rebate
The order of events, on a typical MLGW job:
- The estimate lists each option’s SEER2 rating and the rebate tier.
- Eligibility is confirmed for your address and the chosen equipment.
- The installation follows TVA’s standards, including sizing and start-up.
- The contractor submits the rebate with the installation details.
- TVA’s program processes it and pays according to its own terms.
Questions worth asking
- Is your company a current member of TVA’s Quality Contractor Network?
- Which tier does each option on the estimate fall in?
- Who submits the rebate, and what do you need from me?
- Is the duct sealing on this estimate eligible for TVA’s duct payment?
Duct sealing money
TVA also pays $300 for qualifying duct sealing and insulation. For a Memphis house with a leaky crawlspace or attic trunk, that work is often worth doing with the heat pump anyway.
Bluffline’s typical range for duct repair and sealing done with an install is $800 to $3,500. The crawl space ductwork guide explains what the work involves, and heat pump ductwork describes how we price it.
What ended and what hasn’t started
The federal 25C credit
The federal Energy Efficient Home Improvement Credit, which covered heat pumps, ended for equipment placed in service after December 31, 2025. New installations don’t qualify.
Tennessee’s home energy rebates
Tennessee’s federally funded home energy rebate programs, HOMES and HEEHR, aren’t available yet. The state is waiting on federal and TVA arrangements. When they open, they will be income-based and savings-based, and they may stack with TVA’s rebate under their own rules.
TVA financing
TVA EnergyRight has offered financing through some local power companies. MLGW’s participation isn’t confirmed, so we don’t count on it, and no estimate we write assumes financing of any kind unless you arrange it yourself.
Mississippi and Arkansas homes
If your power comes from Entergy Mississippi, Entergy’s own heating and cooling incentive program applies instead of TVA’s. Its tiers and amounts change, so we check what is current for the equipment we quote.
In Arkansas, West Memphis Utilities and other non-TVA utilities don’t offer TVA’s rebate, and we price equipment without one. The Southaven and West Memphis pages cover the local picture.
What doesn’t qualify
The heat pump rebate is tied to the rated efficiency of a qualifying system, which means a matched outdoor unit and indoor coil or air handler listed together. A few things fall outside it:
- Replacing only the indoor air handler, since the rebate rates the system, not one half.
- Equipment below 15 SEER2.
- Work by a contractor outside the Quality Contractor Network.
- Homes on a power company that isn’t a TVA distributor.
Mismatched systems
A new outdoor unit paired with an old, unlisted indoor coil may not carry a rated SEER2 at all. Besides the rebate, a mismatch costs efficiency and can shorten the compressor’s life. Heat pump replacement explains matched pairs.
Keep the paperwork
After the job, keep the estimate, the invoice, the model and serial numbers of both halves, and the start-up readings in one folder.
They answer rebate questions, help with warranty registration and show the next owner what was installed and when. A phone photo of each nameplate, taken on install day, is a good backup.
How the rebate fits the decision
A $500 or $800 rebate is welcome, but it is a small part of a heat pump’s lifetime cost.
Sizing, ducts and the right system type matter far more to your bills. Use the rebate to help choose between two well-sized options, not to choose a unit that doesn’t fit the house.
Where to go next
The cost page has Bluffline’s typical installed ranges, the gas versus heat pump guide covers running costs, and the Memphis buying guide puts the whole decision in order.