HVAC Rebates 2026: MLGW, TVA EnergyRight & Entergy Mississippi

HVAC rebates in the Mid-South are utility programs, so the first question is who sends your electric bill. In Memphis and most of Shelby County that is MLGW, which is a Tennessee Valley Authority local power company. In DeSoto County it splits: Entergy Mississippi serves Southaven, Horn Lake, Hernando, Nesbit, Walls and parts of Olive Branch, while Northcentral Electric Cooperative, also a TVA local power company, serves the eastern part of the county including much of Olive Branch. A small area on the west side around Walls is served by Coahoma Electric.

That split matters because the TVA EnergyRight menu and the Entergy Solutions menu are different programs with different amounts, different efficiency tiers, and different contractor requirements. A Southaven homeowner and an Olive Branch homeowner two miles apart can be in different programs. Gas is a separate question: Atmos or MLGW gas service does not change your electric rebate, but it does change whether a heat pump or a dual-fuel system makes sense for you, which is covered in our heat pump versus gas furnace guide.

TVA EnergyRight publishes a residential rebate menu that it describes as rebates from TVA EnergyRight and your local power company. At the time of writing the program page lists $800 for a heat pump rated 17 SEER2 or higher and $500 for 15 to 16.99 SEER2, $400 for a central air conditioner at 17 SEER2 or higher and $250 for 15 to 16.99 SEER2, $800 for a ductless mini split at 17 SEER2 or higher, $1,500 for a geothermal heat pump, $50 for an HVAC tune-up, $300 for duct sealing and insulation, $300 for air sealing, $500 for attic insulation, and a smart-thermostat rewards program.

Two requirements are non-negotiable. Every rebate-eligible upgrade must be completed by a member of TVA's Quality Contractor Network, and the QCN page notes that for an upgrade to be eligible the contractor must join within 90 days of project completion. Contractors in the network are licensed and insured and complete training on TVA's quality guidelines. Second, the equipment has to meet the SEER2 tier on the rebate page, so the quote must show the model numbers and the AHRI-rated SEER2 and HSPF2.

On MLGW specifically: MLGW's energy-saving tools page links to TVA EnergyRight, and MLGW's Energy Doctor program offers free in-home energy audits by HERS-certified technicians. We did not find a separate MLGW-published HVAC rebate schedule on mlgw.com, so confirm what applies to an MLGW account directly with MLGW or through the EnergyRight site before you count on a number. Northcentral Electric Cooperative's site points members to energy-saver tools but does not publish rebate amounts; call the co-op to confirm EnergyRight participation for your account.

Entergy Mississippi customers in Southaven, Horn Lake, Hernando and Nesbit have a different program. Entergy Solutions' Residential Heating and Cooling Program page lists incentives of $300 to $850 on a split or single-package central air conditioner and $500 to $1,100 on a split or single-package heat pump, depending on tier, plus $140 per ton for tier-one and $165 per ton for tier-two ductless mini-split heat pumps, and an air-conditioning tune-up at no additional cost. Efficiency thresholds on the page range from 14.30 SEER2 upward and from 7.2 HSPF2 upward depending on equipment type and tier.

The catch is the same as TVA's: incentives apply when you use a participating trade ally, and the trade ally submits the application through Entergy's online incentive tool. The page also says programs are available for a limited time and while funds are available, so the year's budget can run out before December. If you are on Entergy, ask your contractor to confirm trade-ally status in writing and to put the exact model numbers and ratings on the quote.

The Energy Efficient Home Improvement Credit, section 25C, paid 30 percent of qualifying costs up to $2,000 a year for heat pumps and up to $1,200 for other qualifying improvements, with a $3,200 combined annual cap. Federal legislation enacted in July 2025, Public Law 119-21, ended it early. The IRS FAQ on that law states the credit will not be allowed for any property placed in service after December 31, 2025, and the IRS credit page now frames the credit as covering property placed in service from January 1, 2023 through the end of 2025. ENERGY STAR's federal tax credits page says the same: through December 31, 2025.

Practically, a system installed in 2026 does not qualify, regardless of when it was paid for. A qualifying system installed in 2025 can still be claimed on the 2025 return, and the IRS notes that for 2025 the item had to come from a qualified manufacturer and the taxpayer must report the Qualified Manufacturer Identification Number. We are not tax advisers; check the current IRS guidance or ask your preparer before you count on anything.

The federal Home Energy Rebates from the 2022 Inflation Reduction Act are run by states. The Mississippi Development Authority's Office of Energy page describes a Home Energy Rebates effort working with local utilities to help homeowners make upgrades that reduce energy use; it does not publish equipment-level dollar amounts, so treat it as amount varies, see program page, and ask your utility whether it is participating. Tennessee's Department of Environment and Conservation, the state energy office, reported a conditional federal award in January 2025 and said it could not launch until full approval and an executed agreement were in place; we could not find a launch announcement as of August 2026. Check TDEC's energy office for the current status.

Rebates are lost on paperwork more than on eligibility. Before you sign, confirm your utility and program, confirm in writing that the contractor is enrolled for that program, and make sure the quote lists the outdoor and indoor model numbers with the AHRI reference and the SEER2, EER2 and HSPF2 ratings that put it in a tier. Ask who files the application and when; most utility programs have the contractor submit, and some require pre-approval or a reservation before installation.

Our replacement estimates are free, in-home, and list the equipment ratings on the quote so the tier is visible; ask when you book and we will tell you which programs apply to your address and whether the option you are looking at meets the tier. If you want to skip a truck roll for the first conversation, a live video walkthrough at /video-walkthrough lets us see the existing equipment and ductwork first, or upload photos of the data plate through the portal described at /how-it-works. And if a rebate requires a 17 SEER2 system your ducts cannot support, we will say so; a rebate does not fix a static-pressure problem.