HVAC Rebates


Heat Pump Equipment Rebates

Kentucky Power is suspending all new activity in its Demand-side Management (energy efficiency) programs until further notice in response to an order issued by the Kentucky Public Service Commission on November 2, 2017.

Through Kentucky Power’s Whole House Efficiency Program, you can earn rebates* for qualifying HVAC equipment installed by a participating contractor, including heat pumps and smart programmable communicating themostat**, Including:

  • Smart programmable communicating themostat up to $50
  • High efficiency heat pump up to $1,000
  • Heat pump ductless mini split up to $450

2017 HVAC Equipment and Incentives for Residential Customers

Heat Pump Replacement (SEER 15, EER 12.5, HSPF 8.5) $300/unit
Heat Pump Replacement (SEER 16, EER 13, HSPF 9) $450/unit
Heat Pump Replacement (SEER 19, EER 14.5, HSPF 10) $500/unit
Heat Pump (SEER 14.5, HSPF 8.0 Replace Resistance Heat and CAC) $300/unit
Heat Pump (SEER 15, HSPF 8.5 Replace Resistance Heat and CAC) $600/unit
Heat Pump (SEER 16, HSPF 9 Replace Resistance Heat and CAC) $900/unit
Heat Pump (SEER 19, HSPF 10 Replace Resistance Heat and CAC) $1000/unit
Smart Programmable Communicating Themostat† $50/unit
Heat Pump Ductless Mini Split (SEER 21, HSPF 10 Replace Resistance Heat) $400/unit
Heat Pump Ductless Mini Split (SEER 23, HSPF 10.5 Replace Resistance Heat) $450/unit

Invite a participating contractor into your home today to learn what money-saving steps you can take, or call us at 1-866-225-0686 to learn more.

Enroll Now    Find a Participating Contractor


*Rebates vary depending on the measures installed and the efficiency rating of measures installed. The measures may be modified by the implementation contractor and Kentucky Power to reflect market conditions.
**Smart Programmable Communicating Themostat can be defined as any thermostat that uses advanced technologies to drive additional automated savings beyond the initial programmed settings (e.g., geo-fencing, wi-fi).

Terms & Conditions

Kentucky Power Company, dba American Electric Power, is offering incentives under the Kentucky Power Whole House Efficiency program to facilitate the implementation of cost-effective energy efficiency improvements for residential (non-commercial and non-industrial) customers.

Please note that funds are limited and subject to availability.


Kentucky Power Whole House Efficiency program incentives are offered until approved funds are exhausted or December 31st of each program year, whichever comes first. The effective dates of the current Kentucky Whole House Efficiency program and application submission requirements are as follows:

  • Rebate applications must be received within 90 days of work completed.
  • Subsequent program year budgets and plans will be made available toward the end of the existing program year.


The Kentucky Power Whole House Efficiency program offers incentives for some of the more common energy-efficiency measures. Program incentives are available under the Kentucky Power Whole House Efficiency program to residential accounts served on Kentucky Power’s regulated retail rates. Qualifying projects must be installed in a home in Kentucky Power electric service territory. A customer may neither apply for nor receive incentives for the same product, equipment or service from more than one utility.

Project requirements under the Kentucky Power Whole House Efficiency program include the following:

  • Work must be completed by a contractor who is registered in the Kentucky Power contractor network.
  • Customer must be classified as and served under a residential rate.
  • Only one account number per application is accepted. If upgrades are made across multiple account numbers, then separate applications must be made reflecting the quantities associated with each account number.
  • Customer must have participated in the in-home audit prior to Air Sealing & Insulation measures being completed.
  • HVAC equipment upgrades do not require a previous Kentucky Whole House Efficiency Power Audit.
  • Add-on heat pumps/gas packs will be eligible if the customer already has gas pack and is simply replacing with a more efficient model.
  • Customers with gas-heated homes are not eligible for rebates.
  • Crawlspace, basement, and wall insulation can be self installed. Proof of purchase is required and is subject to QA.
  • Eligible residential sectors include:
    • Customers living in single family, multi-family, and mobile homes - owner occupied or where the occupants have the electric service in their name and written owner consent.
    • Multi-family customers include a residential unit that is not considered single family (i.e. apartment, condominium, townhome, etc.)
  • Non-eligible residential sectors include:
    • Commercial properties.
  • Equipment must meet the specifications defined in the measures table.
  • All installed equipment must meet state, federal, and local codes and requirements.
  • An eligible electric rate type listed on the application must install projects on the Kentucky Power electric account served.
  • Equipment must be purchased, installed and operating (or capable of operating in the case of seasonal uses) prior to submitting a final application for an incentive.
  • Kentucky Power will issue incentive payments in the form of checks, not utility bill credits or gift cards.
  • The incentive is paid as a one-time, one-program offer and cannot be combined with incentive payments from other Kentucky Power programs. The customer may be eligible to participate in other programs offered by Kentucky Power, as long as no project receives more than one incentive.

Projects that are NOT eligible for an incentive include:

  • Fuel switching (such as electric to gas or gas to electric).
  • On site electricity generation.
  • Renewables.
  • Used or rebuilt equipment


For the Whole House Efficiency program, the total incentive payment shall not exceed the limits as posted in the rebate applications.


Applications are not a guarantee of program acceptance and incentive payment. Kentucky Power will review applications for eligibility and completeness. Completed applications will be reviewed in the order received. Applicants who submit incomplete applications will be notified of deficiencies upon review of the application, and could lose their place in the review process until all requested information is received. Applicants are encouraged to call the program hotline if they have any questions about documentation requirements.


The Final Application must be submitted within 90 days of project completion. Project documentation, such as copies of dated invoices for the purchase and installation of the measures and/or product specification sheets, is required.

The customer name on the invoice must be consistent with the application information. Final Applications and all required supporting documentation must be received by December 31.

The invoice should provide sufficient detail to separate the project cost from the costs of other services not related to the energy efficiency project and other repairs. Kentucky Power reserves the right to request additional supporting documentation as deemed necessary to ensure measure eligibility and verify that the expected energy savings will occur. Confidential information contained in any documents associated with this application will be protected from public filings. However, this information may be disclosed to the Public Service Commission. Requested information could include: equipment purchase dates, installation dates, proof that the equipment is operational, manufacturer specifications, savings calculation documentation, monitoring data, warranty information, and proof of customer co-payment.


Kentucky Power reserves the right to inspect all projects to verify compliance with the program rules and verify the accuracy of project documentation. This may include pre-installation and/or post-installation inspections, detailed lighting layout descriptions, metering, data collection, interviews, and utility bill or monitoring data analyses. The customer must allow access to project documentation and the home where the measures were installed for a period of seven years after receipt of an incentive payment from Kentucky Power.


Incentives may be taxable. Kentucky Power is not responsible for any taxes that may be imposed on you as a result of your receipt of payment. We may require that a W-9 be provided.

Kentucky Power does not guarantee any energy savings and does not make any guarantee associated with the measures eligible for incentives under this program. Kentucky Power has no obligations regarding and does not endorse or guarantee any claims, promises, work, or equipment made, performed, or furnished by any contractors or equipment vendors that sell or install any energy efficiency measures. Kentucky Power is not responsible for the proper disposal/recycling of any waste generated as a result of this project. Kentucky Power is not liable for any damage caused by the operation or malfunction of the installed equipment.