Can Renters Get Heat Pump Rebates? A Complete Guide for Tenants
If you're renting and dealing with an ancient, inefficient heating system, you've probably wondered: can I get rebates to upgrade to a heat pump? The short answer is complicated—and often frustrating. Most rebate programs are designed for property owners, not tenants. But before you give up, there are strategies that work.
Here's what you need to know about navigating heat pump rebates as a renter, including how to have productive conversations with landlords, which programs (rarely) allow tenant applications, and what your realistic options are.
The Fundamental Problem: Who Owns the Equipment?
The core issue is simple: heat pumps are permanent improvements to the property, and rebate programs almost universally require the property owner to apply. This creates what economists call the "split-incentive problem."
The Split-Incentive Problem Explained
Here's how it works:
- You (the tenant) pay the monthly utility bills and would benefit from lower heating and cooling costs
- Your landlord would need to pay for the equipment upgrade but doesn't directly benefit from reduced utility bills
- Result: Neither party has sufficient motivation to make the upgrade happen
A tenant might save $100 per month on utilities with a heat pump, but they can't justify spending $10,000 to $15,000 on equipment they don't own. Meanwhile, the landlord sees a large upfront cost with no immediate return since tenants pay the utilities.
This misalignment is why energy efficiency upgrades happen far less frequently in rental properties compared to owner-occupied homes.
Federal Rebate Programs: The Landlord Must Apply
As of November 2025, the two major federal rebate programs—HOMES (up to $8,000) and HEEHRA (up to $8,000)—both require the property owner to be the applicant.
HOMES Rebate Program
The HOMES program (Home Energy Rebates) provides rebates based on whole-home energy savings:
- Basic tier: Up to $2,000 for 20% energy savings
- Enhanced tier (low-income): Up to $8,000 for 35% energy savings
- Eligibility: All income levels accepted, with enhanced amounts for households under 80% Area Median Income (AMI)
The catch: Your landlord must apply and own the property. According to the Department of Energy's HOMES program guidance, property owners must submit applications and documentation, though the income verification for enhanced rebates is based on household income (the tenant's income in rental situations).
HEEHRA (High-Efficiency Electric Home Rebate Act)
HEEHRA offers equipment-specific rebates:
- Heat pumps: Up to $8,000
- Heat pump water heaters: Up to $1,750
- Electrical panel upgrades: Up to $4,000
The catch: Income restrictions apply (80% or 150% AMI depending on rebate tier), and the property owner must apply. The Department of Energy specifies that the homeowner or building owner is the eligible applicant, though income verification for rental properties may be based on tenant income depending on state implementation.
The 25C Tax Credit: Also Owner-Only
The federal 25C tax credit (30% of costs up to $2,000 for heat pumps) explicitly requires the taxpayer to own the home. According to IRS guidelines, renters cannot claim this credit as it requires ownership of the property where improvements are made.
State and Utility Programs: Slightly Better Odds
Some state and utility programs have more flexible rules, though landlord participation is still typically required.
States with Renter-Friendly Provisions
A few states have created specific pathways:
Massachusetts: The Mass Save program allows landlords to access rebates for rental properties with relatively simple applications. The program includes specific incentives for multi-family properties and rental units.
New York: NYSERDA (New York State Energy Research and Development Authority) programs include specific tracks for multifamily buildings and rental properties, with streamlined applications for landlords and property managers.
California: Some utility programs allow renters to initiate applications if they can get landlord permission and cooperation. Check with your specific utility provider, as programs vary by service territory.
Oregon: Energy Trust of Oregon has landlord-specific programs with higher rebates designed to overcome the split-incentive problem in rental properties.
Check your state: State energy offices are gradually rolling out programs. Visit your state energy office website or check DSIRE (Database of State Incentives for Renewables & Efficiency) for current program availability in your area.
How to Convince Your Landlord to Upgrade
Yes, this is the hard part. But it's not impossible. Here's a strategic approach:
1. Lead with Their Benefits
Frame the conversation around landlord advantages:
Property value increase: Heat pumps are attractive to future tenants and increase property value. A rental with modern, efficient heating commands higher rent.
Reduced maintenance: Heat pumps require less maintenance than old furnaces or boilers. No more emergency furnace repairs at 2 AM in January.
Competitive advantage: Energy-efficient rentals are increasingly in demand, especially among younger renters who prioritize sustainability.
Minimal out-of-pocket cost: With rebates covering $8,000 to $16,000, the landlord's actual cost might be $5,000 to $10,000 for a system that would otherwise cost $15,000 to $20,000.
2. Do the Math for Them
Create a simple one-page document showing:
Current situation:
- Age and condition of existing system
- Estimated annual maintenance costs
- Risk of system failure
With heat pump upgrade:
- Total cost: $15,000 (example)
- Less rebates: -$10,000 (HOMES + HEEHRA)
- Net cost: $5,000
- Property value increase: $8,000 to $12,000
- Payback period: 2 to 3 years through reduced maintenance and higher rent potential
Pro tip: Use a rebate calculator to show your landlord exact rebate amounts for your location and property type. This makes the financial case more concrete and credible.
3. Offer to Handle the Paperwork
Many landlords don't pursue rebates because they seem complicated. Offer to:
- Research available programs
- Gather required documentation
- Fill out applications (they'll need to sign)
- Coordinate with contractors
This removes a major barrier for time-strapped landlords.
4. Propose a Rent Arrangement
Consider offering:
- A modest rent increase ($25 to $50 per month) that's still less than your projected utility savings
- A longer lease term in exchange for the upgrade
- To cover a portion of the upgrade cost in exchange for a multi-year rent freeze
5. Get Multiple Quotes
Show your landlord you've done homework by getting 2 to 3 quotes from rebate-certified installers. This demonstrates seriousness and gives them confidence in the numbers. Look for contractors in your state's rebate-certified installer network to ensure they're familiar with the application process.
Mini-Splits: The Renter's Best Option
If your landlord won't budge on a whole-house system, ductless mini-split heat pumps offer a middle ground.
Why Mini-Splits Work for Renters
Less invasive installation: Only requires a small hole through the wall, not ductwork modifications.
Room-by-room control: You can install one unit in your bedroom or living space without upgrading the entire house.
Lower cost: Single-zone systems cost $3,000 to $5,000 installed, making them more palatable to landlords.
Portable (sort of): While not truly portable, the outdoor unit could theoretically be moved to another property.
Mini-Split Rebate Reality
Mini-splits still qualify for the same rebates (up to $8,000 from HEEHRA), but the landlord must apply. However, the lower cost and easier installation make landlords more likely to approve.
Your pitch: "This costs $4,000, rebates cover $2,000, you pay $2,000 net, and it increases property value by $3,000 to $5,000. Plus I'll sign a two-year lease."
Legal Considerations and Lease Agreements
Before proceeding with any upgrade, understand your legal position:
Review Your Lease
Check for clauses about:
- Modifications to the property: Most leases prohibit tenant-initiated modifications
- Maintenance responsibilities: Who's responsible for HVAC repairs?
- Utilities: Are they included or separate? This affects your negotiating position
Get Everything in Writing
If your landlord agrees to an upgrade:
- Document the agreement: Include who pays what, timeline, and any rent adjustments
- Clarify ongoing maintenance: Who handles repairs and filter changes?
- Specify what happens at move-out: Is the equipment staying? Any deposit implications?
Know Your Rights
Some states have laws requiring landlords to maintain habitable conditions, which includes adequate heating. If your system is dangerously old or frequently broken, you may have legal leverage. Check your state's tenant rights laws.
Don't Install Without Permission
Never install a heat pump without explicit landlord approval. Even a mini-split requires drilling through walls. Unauthorized modifications can:
- Violate your lease
- Result in eviction
- Cost you your security deposit
- Make you liable for removal and repairs
Alternative Strategies When Rebates Don't Work
If rebates and landlord negotiations fail, consider these options:
1. Efficiency Improvements You Can Make
While not as impactful as a heat pump, you can improve efficiency:
- Weather stripping and caulking: Seal air leaks around windows and doors
- Window film: Reduces heat gain in summer, heat loss in winter
- Portable air conditioning: Modern portable AC units are far more efficient than old window units
- Space heaters: Targeted heating with efficient electric heaters can reduce whole-house heating costs
2. Utility Assistance Programs
Many utilities offer:
- Free energy audits
- Free weatherization supplies
- Assistance programs for low-income renters
- Budget billing to smooth out seasonal cost spikes
3. Move to an Efficient Rental
If you're lease shopping:
- Ask about HVAC systems: What type? How old? What's the average utility bill?
- Look for Energy Star certified buildings
- Prioritize newer construction: Building codes have improved dramatically in recent years
- Consider all-electric buildings: Often have more modern, efficient systems
4. Long-Term: Buy Instead of Rent
This isn't always feasible, but homeownership completely changes the rebate equation. As an owner, you'd have full access to all programs and complete control over upgrades.
The Bottom Line: Challenging But Not Impossible
Can renters get heat pump rebates? Technically no—the rebates go to property owners. But can renters benefit from heat pump upgrades? Absolutely, with the right approach.
Your action plan:
- Research your state's programs: Some states have better renter provisions than others
- Calculate the complete value proposition: Property value, reduced maintenance, competitive advantage
- Approach your landlord professionally: Lead with their benefits, offer to help with paperwork
- Start small if needed: Propose a single mini-split for your unit as a trial
- Get everything in writing: Protect yourself legally
- Consider alternatives: If rebates don't work, focus on efficiency improvements you can control
The split-incentive problem is real, but landlords who understand the financial benefits—especially with rebates covering 50% to 80% of costs—often come around. Your job is to make it as easy as possible for them to say yes.
Next Steps:
- Check your state energy office website for current rebate programs
- Use a rebate calculator to determine exact savings for your property
- Get 2 to 3 quotes from rebate-certified heat pump installers in your area
- Schedule a conversation with your landlord armed with specific numbers and a clear proposal
The rental market is slowly shifting toward efficiency as younger renters demand it and programs adapt to address the split-incentive problem. You might be surprised by your landlord's response—especially when you show up with a fully researched proposal that makes their decision easy.