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Rebates & Incentives Guide
What a utility pays on a new heat pump, air conditioner, furnace or geothermal system depends on the name printed on your electric bill, and across Campbellsville, Lebanon, Columbia, Greensburg, Springfield and Hodgenville that is one of five different utilities. This guide from A-1 Cooling, Inc. lists every 2026 amount, explains which federal credits ended after 2025, and why the state rebate program is not open yet. Want the exact figure for your address? We provide free in-home estimates across Central Kentucky.
Rebates & Incentives Guide
Every amount on this page was read from the utility's own program page on 2026-09-10 and is re-checked quarterly. Rebate programs change with each co-op's budget year; confirm the current figure with your utility before you sign a contract.
Co-op territories do not follow town limits. A Campbellsville city address usually bills with Kentucky Utilities, while an address a few miles out on the same road bills with Taylor County RECC. Columbia and Greensburg are Taylor County RECC territory; the co-op serves Adair, Casey, Cumberland, Green, Hart, Marion, Metcalfe, Russell and Taylor counties. Hodgenville and the rest of LaRue County bill with Nolin RECC. Lebanon addresses bill with Inter-County Energy or Taylor County RECC depending on the road. Springfield and Washington County are Salt River Electric.
The utility name printed on your bill decides three things: the form you file, the amount you receive and the equipment rules the new system has to meet. We check it before we quote, because the same heat pump can carry a $400 rebate at one address and a $1,000 rebate two miles down the road.
The table below lists what each of the five utilities serving our six towns published on its own program page when we read it. Find your utility in the first column, then read across for the equipment you are considering.
| Utility (name on your bill) | ENERGY STAR heat pump | Cold-climate or geothermal heat pump | Replacing an electric furnace or baseboard heat | Other equipment | Weatherization and other programs |
|---|---|---|---|---|---|
| Kentucky Utilities (Campbellsville city) | $400 air-source; $400 ductless | No separate tier | Not offered | $300 central AC; $250 natural gas furnace; $300 heat pump water heater | Residential rate plans RS, RTOD-D, RTOD-E, RGS or VFD; ENERGY STAR certified equipment required |
| Taylor County RECC (rural Taylor, Adair, Green, Marion and five more counties) | $500 | $1,000 cold-climate; geothermal is not named on the program page, ask the co-op | Up to $1,000 (home 2 or more years old; 14.3 SEER2 and 7.5 HSPF2 minimum; new manufactured homes also apply) | $250 heat pump water heater | Button-Up weatherization up to $1,875; CARES up to $3,000; SimpleSaver bill credit up to $20 a year per enrolled central AC |
| Nolin RECC (Hodgenville and LaRue County) | $500 | $1,000 cold-climate; geothermal is not named on the program page, ask the co-op | Up to $1,000, including new manufactured homes | $250 heat pump water heater | Button-Up weatherization up to $1,875; CARES up to $3,000; SimpleSaver bill credit up to $20 a year per enrolled central AC |
| Inter-County Energy (Lebanon and Marion County, by address) | $500 (ducted, primary heat source) | $1,000 (cold-climate or geothermal) | Ducted retrofit $750 or $1,000 by rating; mini-split retrofit $500, $1,000 or $1,500 by number of indoor heads (up to three); closed-loop geothermal qualifies, amount set by rating | $250 heat pump water heater; $100 smart thermostat enrollment plus $10 sign-on | Button-Up weatherization up to $1,875 plus $500 duct sealing; CARES up to $3,000; amounts printed as of 9/1/2025 |
| Salt River Electric (Springfield and Washington County) | $500 | $1,000 cold-climate; geothermal is not named on the program page, ask the co-op | Up to $1,000, including new manufactured homes | $250 heat pump water heater | Button-Up weatherization up to $1,875; CARES up to $3,000; SimpleSaver bill credit up to $20 a year per enrolled central AC |
Amounts verified 2026-09-10 on the pages linked above. Taylor County RECC's own rebate page and Nolin RECC's own rebate page could not be opened that day, so their figures come from the co-ops' shared program site and should be confirmed with the co-op before you sign.
A few rules sit behind those numbers. The four co-ops pay their equipment rebates on electrically heated residential homes only, and the heat pump rebates require an ENERGY STAR certified model; the forms ask for the model numbers, and Inter-County sets its ducted retrofit tiers by the AHRI-rated efficiency. Taylor County RECC's electric-resistance changeout requires the home to be at least two years old and the new heat pump to meet 14.3 SEER2 and 7.5 HSPF2. SEER2 is the cooling efficiency rating under the test procedure adopted in 2023, and a higher number means less electricity per unit of cooling. HSPF2 is the matching heating efficiency rating for a heat pump, and again higher is better. Inter-County's amounts are printed on its own page as revised 9/1/2025 under a tariff approved by the Public Service Commission. Kentucky Utilities pays only on residential rate plans RS, RTOD-D, RTOD-E, RGS or VFD, and only on ENERGY STAR certified equipment.
The cold-climate tier is worth understanding before you pick equipment. Taylor County RECC, Nolin RECC, Inter-County Energy and Salt River Electric each pay $1,000 on an ENERGY STAR cold-climate heat pump against $500 for a standard ENERGY STAR model, and a cold-climate unit also holds more of its heating capacity on the coldest nights of the year, which matters in a Kentucky ice storm.
Two federal tax credits that homeowners counted on for years ended for systems placed in service after December 31, 2025, under Public Law 119-21. The residential geothermal credit (Internal Revenue Code section 25D) covered 30 percent of a ground-source installation with no upper limit, and the section 25C credit covered part of the cost of a qualifying heat pump, furnace or air conditioner. There is no reduced credit for 2026, and Kentucky has no state income tax credit that replaces either one. A system placed in service in 2025 can still be claimed on that year's return, so keep the invoice if your installation finished before the deadline. The payback math for ground-source systems changed with the credit; our geothermal guide works through it with 2026 numbers, and our geothermal heating and cooling page covers the loop options and the WaterFurnace equipment we install.
You may have seen calculators and ads promising thousands of dollars in Kentucky heat pump rebates. The state's own site, energyrebates.ky.gov, said this when we read it on 2026-09-10: "Kentucky Home Energy Rebates are not yet available. Anyone that is offering these rebates is misinformed." The program is a federally funded rebate that the state will run. Kentucky's application is still in the federal approval step, there is no launch date, and no amounts have been published for Kentucky homes. The site suggests that residents consider waiting for the program to open before non-essential improvements, and it offers an email notification list you can join there. We do not quote a figure for a program that has not opened. This page will be updated when it does.
Manufactured homes are not left out. Nolin RECC's, Taylor County RECC's and Salt River Electric's electric-resistance changeout rebate explicitly includes new manufactured homes, and Inter-County's retrofit program says new manufactured homes are eligible with no minimum zone requirement. The ENERGY STAR heat pump rebates apply to listed equipment in any home. The catch is the equipment itself: a manufactured home usually needs a downflow or packaged unit listed for manufactured housing, which we size and install as a matter of routine. Our guide to mobile and modular home AC and heating options explains the equipment choices, and our manufactured home HVAC service page covers what we do on site.
The co-op forms are filed with the installing contractor's information and the equipment's model numbers, and for a ducted system the AHRI certificate that documents the rated efficiency. Button-Up weatherization needs a home energy review by the co-op before the work and another after it, so that program starts with a call to the co-op rather than to a contractor. You keep the invoice, the AHRI certificate and the rebate confirmation. Bryant runs seasonal manufacturer rebates through its dealers, and as a Bryant dealer we check what is open on the day we quote. If the rebate does not cover the gap, financing is available on approved credit, and we walk through it before you sign.
Whether your home is in Campbellsville, Lebanon, Columbia, Greensburg, Springfield or Hodgenville, we look up the utility on your bill and price the system with the right rebate attached. Call 270-465-3076 for a free estimate, and see our heat pump installation and ductless mini-split installation pages for the equipment side of the decision.
Answering Your Questions
Let's Get Started
Bring us the name on your electric bill and we will do the rest. A-1 Cooling, Inc. provides free, no-pressure in-home estimates across Central Kentucky with the current rebate priced in. Call 270-465-3076 or request your free estimate online, and we will file the paperwork with the install.
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