Are Utah Energy Rebates Dead? What Salt Lake Homeowners Need to Know About Heat Pump & Insulation Incentives in 2026
Look, I get it. You've been hearing rumors that energy rebates are dead. Your neighbor in Herriman says they're gone. Your brother-in-law in Sandy swears they expired. And honestly? The confusion is 100% understandable.
But here's the truth: Energy rebates aren't dead: they just changed clothes.
Federal incentives are still very much alive in 2026, and if you play your cards right (and make some smart moves before a key deadline this summer), you could pocket thousands of dollars for upgrades you were probably planning to do anyway.
So let's cut through the noise and get you the facts: because leaving money on the table is never a good look.
The Big Question: What Federal Rebates Are Still Available?
Short answer: A lot more than you think.
The 25C tax credit (officially called the Energy Efficient Home Improvement Credit) is still kicking, and it covers some of the most popular home upgrades Salt Lake Valley homeowners are already doing:
Heat Pumps: Up to $2,000
If you're upgrading to a qualifying electric air-source heat pump or electric heat pump water heater, you can claim up to $2,000 on your federal taxes. Heat pumps are a big deal in Utah: they heat in winter, cool in summer, and are way more efficient than old-school furnaces and AC units. Plus, with our wild temperature swings (January freeze, then 60 degrees in February, anyone?), a heat pump just makes sense.
Air Conditioners & Furnaces: Up to $600 Each
Got a furnace that sounds like a jet engine? An AC unit that's been wheezing since 2008? You can claim up to $600 per qualifying system. The kicker? There's a maximum aggregate annual credit of $3,200 across all your energy-efficient upgrades. So if you're doing multiple projects (heat pump, insulation, windows), you can stack those credits: up to a point.
Insulation & Weatherization: Up to $1,100
Here's where things get interesting (and time-sensitive). You can claim up to $1,100 for insulation, air sealing, energy-efficient windows, and doors. You can receive up to $600 for windows. You can also receive up to $250 per exterior door, capping at $500.
What About Local Utility Rebates?
Great news: Rocky Mountain Power's Wattsmart and Dominion Energy's ThermWise programs are still going strong.
These aren't federal rebates: they're offered by your local utility companies, and they can seriously sweeten the deal:
ThermWise: Offers rebates for qualifying insulation, air sealing, HVAC upgrades, and smart thermostats. The exact amounts vary, but we're talking hundreds (sometimes thousands) depending on the project.
Wattsmart: Rocky Mountain Power continues to offer rebates for energy-efficient upgrades, including heat pumps, insulation, and LED lighting. Wattsmart also offers battery incentives that vary by enrollment period and capacity. Check the current program details before planning a project.
Here's the thing: stacking federal and utility rebates is where the magic happens. You could get a federal tax credit and a local utility rebate for the same project. That's like double-dipping, but totally legal and encouraged.
What's Actually Gone?
Let's be real for a second. Some rebates did expire, and that's probably where the "rebates are dead" rumor started.
Utah's $2,000 state solar tax credit ended in 2023. If you installed solar panels in 2024 or later, you can't claim that state credit anymore. (You can still claim the federal solar credit, but the state one is toast.)
And looking ahead? There are no new state-level energy incentives planned. Utah's voluntary renewable portfolio standard doesn't exactly light a fire under utilities or the state government to roll out fresh programs. So what you see now is pretty much what you'll get for the foreseeable future.
Bottom line: Don't wait for new incentives to magically appear. Use the ones that exist right now.
How Your Handyman Pros Can Help (Because You Shouldn't DIY This)
Look, I'm all for a good DIY project. But when you're talking about thousands of dollars in rebates and tax credits, you want a licensed, insured contractor handling the work: Many utility rebates require approved contractors, and professional installation helps ensure the work meets efficiency standards and documentation requirements.
Here's where we come in.
We are B100 General Contractors (Lic #12888335-5501). We can handle the full project management for energy-efficient upgrades:
Insulation: Attic, walls, crawl spaces: we'll make sure your home is properly sealed and insulated so you're not heating/cooling the great outdoors.
Heat Pump Prep: Getting your home ready for a heat pump install (ductwork modifications, electrical upgrades, etc.) is a big part of the job, and we coordinate with trusted HVAC pros to make the whole process smooth.
Weatherization & Air Sealing: We'll find the gaps, cracks, and leaks that are costing you money every month.
Windows & Doors: If you're replacing old, drafty units with energy-efficient models, we'll make sure the install is done right (because a poorly installed window is worse than the old one).
And here's the best part: we know how to document everything for rebates and tax credits. We'll provide the receipts, invoices, and specs you need to file your paperwork and get your money back.
How to Actually Claim These Credits
Filing for federal energy credits is easier than you think. You'll use IRS Form 5695 (Residential Energy Credits) when you file your 2026 tax return.
Here's what you'll need:
Receipts and invoices from your contractor (that's us)
Manufacturer's Certification Statements (we'll help you get these)
Proof that the equipment/materials meet federal efficiency standards
For utility rebates (ThermWise, Wattsmart), the process varies, but usually involves:
Submitting an application (sometimes before the work starts)
Providing receipts and proof of purchase
Getting an inspection or verification (depending on the project)
We've done this enough times to walk you through it step-by-step. You won't be figuring this out alone.
The Bottom Line: Don't Leave Money on the Table
Federal energy rebates aren't dead: they're just underutilized.
If you've been thinking about upgrading your insulation, installing a heat pump, or replacing drafty windows in your Sandy, Herriman, or Bountiful home, set a reasonable timeline and make these upgrades before another year passes.
We're here to make it easy. We'll handle the project, coordinate with HVAC and electrical pros, and make sure you get every dollar of rebates and credits you're entitled to.
Because honestly? You've got better things to do than leave thousands of dollars on the table.
Ready to get started? Contact Your Handyman Pros and let's make 2026 the year you upgrade your home and your bank account.
