Saving energy adds up, in a good way, with Smart Thermostat Rewards.

Business & Industry / Demand Response

You’re invited to sign up for the new Smart Thermostat Rewards program, brought to you by TVA EnergyRight® and participating local power companies. Tell your friends and neighbors, too!

Smart Thermostat Rewards was carefully designed with input from residents like you and local power companies. This voluntary program rewards participants for using less energy during times of peak energy demand — like a winter cold snap or a summer heat streak. 

Enroll now

Saving energy adds up, in a good way.

Illustration showing that the Smart Thermostat Rewards program offers a $65 sign-up rebate and a $20-$65 annual participation rebate.

Frequently asked questions about Smart Thermostat Rewards.

What are the financial benefits of Smart Thermostat Rewards?

You can save on money energy by using less electricity during times of peak demand, plus you’ll also receive a $65 enrollment rebate. Year-round participants will receive an additional $65 annual participation rebate and summer-only participants will receive a $20 annual participation rebate. 

Why is TVA EnergyRight offering financial rewards for using less electricity?

When temperatures soar in the summer or plummet in the winter, demand for electricity increases.

Programs like Smart Thermostat Rewards help TVA make sure that electricity is available to the entire region during times of peak energy demand. They also help keep electricity more affordable for everyone.

Older man adjusting his thermostat as he leaves his home on a summer day.

How does the program work?

When you and your friends and neighbors enroll in Smart Thermostat Rewards, you’re agreeing to allow automatic adjustments of up to four degrees for a duration of up to four hours during times of peak demand (up to 60 hours per season). The more participants we have, the better it works for everyone!

Prior to an event, enrolled thermostats may be adjusted to pre-condition — pre-heat or pre-cool — a home so that customers remain comfortable while the event is taking place. Pre-conditioning may not always occur.

When do adjustments typically occur? 

Typically, adjustments of up to four degrees, for up to four hours, occur between 6 a.m. and 10 p.m. Summer-only participants (for those who do not have electric heat) can expect events to be called between June 1 and September 30. 

Enroll your thermostat

How will I know when a temperature adjustment is in progress?

Depending on the thermostat provider, notifications may appear on the thermostat or in your web/mobile application.

Can I opt out of an event or program?

Yes. Although you must maintain a 65% participation rate to remain in the program and receive the $65 (year-round) or $20 (summer-only) participation rebate, you can opt out of an event using your thermostat, mobile app or web browser. You can opt out of the Smart Thermostat Rewards program at any time by emailing TVAEnergyRightSmartThermostatRewards@energyhub.net and requesting to end participation.

Family laughing and playing Jenga, enjoying the comfort of their smart thermostat-controlled home.

Which smart thermostats qualify for the program?

Our participating smart thermostat partners include Alarm.com, Amazon, ecobee, Honeywell Home, Nest and Sensi.

How can I sign up for Smart Thermostat Rewards?

If you have a qualifying thermostat and your local power company is participating in the program, you can visit EnergyRight.com/smartthermostat to enroll. 

NOTE: Terms, conditions  and pricing are subject to change.

7 federal tax credits for energy efficiency upgrades.

Residential / Rebates

Making energy efficient upgrades to your home can lower your energy bill, make your home more comfortable and reduce your environmental impact. Energy upgrades may also offer significant tax savings. 

The federal government offers several tax credits to encourage homeowners and renters to invest in energy-saving improvements. Be sure to speak with your tax advisor for the latest information on local, state or federal tax credits.

Here are some of the top federal tax credits you can claim to make your home more energy efficient.

#1 — Residential Clean Energy Credit

This credit, formerly the Residential Energy Efficient Property Credit, allows homeowners to claim up to 30% of the cost of installing renewable energy systems (IRS.gov). Eligible systems include:

  • Solar panels (photovoltaic systems)
  • Solar water heaters
  • Wind turbines
  • Geothermal heat pumps*
  • Battery storage systems

*If you’re considering a geothermal heat pump, check out our $3,000 rebate!

Geothermal Heat Pump Rebate

#2 — Energy Efficient Home Improvement Credit

Previously called the Nonbusiness Energy Property Credit, this tax credit was recently expanded (TurboTax). If you make qualifying improvements after January 1, 2023, you may be able to claim up to $3,200 annually for qualifying energy-efficient upgrades (IRS.gov), including:

  • Insulation and airs ealing materials or systems*
  • Heat pumps*
  • Water heaters
  • Exterior doors 
  • Exterior windows and skylights 

*If you’re thinking about insulation, air sealing or having a new heat pump installed, reach out to a member of our Quality Contractor Network to learn more about incentives from TVA EnergyRight and your local power company.

Explore TVA EnergyRight rebates

#3 — Electric panel upgrade tax credit

If you’re upgrading your home’s electric panel to accommodate new energy-efficient systems, you can claim up to 30% of the cost, up to $600. This credit helps ensure your home’s electrical system can handle increased loads from new appliances or renewable energy installations (ENERGYSTAR.gov).

Source: Energy.gov – Tax Credits for Energy Efficiency

Two men discussing heat pumps and energy efficiency upgrades, standing outside of a dusty blue home with a heat pump.

#4 — Energy efficient HVAC systems

As part of the Energy Efficient Home Improvement Credit, your heating, ventilation, and air conditioning (HVAC) systems may also qualify for a credit (ENERGYSTAR.gov). Tax credits may be available for installing:

  • Energy-efficient air conditioners*
  • Heat pumps*
  • Furnaces
  • Boilers

*Rebates from TVA EnergyRight and your local power company are also available on qualifying heat pumps, ductless mini-splits, and 15 SEER2 or higher central air conditioning units.

Central air conditioner rebates

#5 — Home energy audit tax credit

A professional home energy audit helps identify areas where your home is losing energy. The Energy Efficient Home Improvement Credit covers 30% of the cost of a home energy audit, up to $150 (Energy.gov). Find a TVA-vetted professional for your Home Energy Evaluation and start saving.

Or, if you’d rather start with a free, DIY Home Energy Assessment, we can help with that, too!

Illustration promoting the DIY Home Energy Assessment. Complete an assessment and receive a home improvement gift card.

#6 — Energy-efficient water heaters

Replacing an old tank-style water heater with a more energy-efficient on-demand or heat pump model may qualify for a tax credit. 

#7 — Smart thermostats

Smart thermostats “learn” your heating and air conditioning preferences (and your schedule) and adjust heating and cooling accordingly to optimize energy use. They may not be eligible for federal credits on their own, but installation costs may be eligible as part of a bigger HVAC upgrade.

Fortunately, we have you covered! Check out our Smart Thermostat Rewards program and learn more about our instant rebate. Or, check out our Smart Thermostat FAQs for more information.

DISCLAIMER: TVA EnergyRight and local power companies do not provide tax, legal or accounting advice. This blog is intended for informational purposes only and should not be relied on for tax, legal, or accounting advice. Consult your own tax, legal, and accounting advisors for more information.

What is a heat pump and how do they work?

Residential / heat pumps

We’ve already done a little digging into geothermal heat pumps — so, in this article, we’re shedding some light on the region’s most popular heating and cooling system: the heat pump.

If you’re looking for an energy-efficient way to heat and cool your home, you may have come across the term “heat pump.” But what is a heat pump, and how do they work? 

What is a heat pump?

A heat pump is a versatile heating and cooling system that transfers heat from one place to another. Unlike a conventional furnace, which generates heat by burning gas or oil, a heat pump extracts heat from the air, ground, or water. 

Heat pumps move heat inside during the winter and outside during the summer. Because heat pumps move heat rather than generate it, they can operate with significantly higher efficiency than conventional heating and cooling systems.

It also means that heat pumps are “twofers” — they do double duty as your heating system in the winter and your central air conditioning system in the summer.

How do heat pumps work?

Heat pumps function using a refrigeration cycle similar to that of an air conditioner. The main components of a heat pump include:

  • Evaporator coil – Absorbs heat from the surrounding air, ground, or water.
  • Compressor – Increases the temperature of the absorbed heat by compressing the refrigerant gas.
  • Condenser coil – Releases the heat into your home in heating mode or expels heat outside in cooling mode.
  • Expansion valve – Regulates refrigerant flow to maintain the correct temperature and pressure levels.

In the winter, the heat pump extracts heat from the outdoor air (even in cold temperatures) and moves it indoors. In the summer, the process reverses, and the heat pump removes heat from inside your home and releases it outdoors, keeping your home cool.

Do you have a heat pump?

You may be surprised to find out that you already have one! Our seven-state Valley region holds seven of the top 10 positions for states with the highest percentage of heat pumps.

Graphic illustrating the top 10 states for heat pumps.

What are the different types of heat pumps?

There are several different types of heat pumps — and we offer rebates on many of them! Federal tax credits may also be available.

  • Air-source heat pumps – The most common type of heat pump, air source or dual fuel heat pumps extract heat from the outdoor air. Get a rebate of up to $800.
  • Ground-source (geothermal) heat pumps – Use underground heat for increased efficiency but require extensive installation. Get a rebate of up to $3,000.
  • Water-source (geothermal) heat pumps – Transfer heat to and from a water source, such as a lake or well. Get a rebate of up to $3,000.
  • Ductless mini-split heat pumps – Ideal for homes without ductwork, providing zoned heating and cooling. Get a rebate of up to $800.

Explore all rebates!

Energy efficiency and SEER2 ratings.

One of the biggest advantages of heat pumps is their high energy efficiency. The efficiency of air conditioners and heat pumps is measured using the Seasonal Energy Efficiency Ratio (SEER) for cooling and Heating Seasonal Performance Factor (HSPF) for heating. In January 2023, the U.S. Department of Energy updated its rating standards to SEER2 and HSPF2, which provides a more accurate measure of a unit’s real-world performance (Air Conditioning, Heating and Refrigeration Institute). 

Understanding SEER2 ratings

  • Higher SEER2 ratings indicate better cooling efficiency and use less electricity to cool your home.
  • Higher HSPF2 ratings mean the heat pump is more efficient at heating, helping you save on winter heating costs.
  • The minimum SEER2 rating for heat pumps in our southeastern region is 15.

When purchasing a new heat pump, looking for a model with a high SEER2 rating ensures lower energy consumption and reduced utility bills over time.

SEER2 FAQs

How heat pumps help you save money

A major advantage of installing a heat pump — whether it’s geothermal, dual fuel, or a ductless mini-split, is energy savings, which translates into lower utility bills (Energy.gov).

  • Efficiency: Heat pumps use electricity to move heat rather than generate it, making them significantly more efficient than traditional heating systems.
  • Lower operating costs: Because heat pumps work year-round for both heating and cooling, you can replace separate heating and cooling systems with a single unit, reducing maintenance costs.
  • Rebates and incentives: Many federal, state and local programs offer rebates and tax credits for heat pump installations. Be sure to check out all of our rebates to make sure you’re maximizing your savings.

Environmental benefits of heat pumps

Beyond cost savings, heat pumps contribute to a more sustainable future by reducing carbon emissions. Since they use electricity instead of fossil fuels like natural gas or oil, they lower household greenhouse gas emissions. Pairing a heat pump with renewable energy sources such as solar power can further enhance sustainability.

Is a heat pump right for your home?

Our region is ideally suited for heat pumps and more and more homeowners are choosing these money-saving systems over conventional furnaces. If you’re thinking about upgrading your heating and air conditioning systems, reach out to a TVA-vetted member of the Quality Contractor Network to learn more. 

With high efficiency ratings, SEER2-rated models, rebates from TVA EnergyRight and government incentives, now is a great time to consider upgrading to a heat pump. By making the switch, you can enjoy year-round comfort, lower energy costs, and a more sustainable home!

Small changes, big impact: The ripple effect of energy efficiency at Journey Coleman School in Memphis.

Business & Industry

Elementary school student laughing.

The air crackled with excitement as students, teachers and the community gathered at Journey Coleman School in Memphis, Tennessee. This was no ordinary Friday — it was a celebration of heritage and progress. The TVA EnergyRight’s School Uplift event coincided with the school’s Black History Month program, creating a powerful fusion of past and present while looking toward a brighter future.

The audience was captivated as the school choir’s harmonies filled the room and dancers took the stage. Students shared heartfelt poetry, their words echoing the resilience and determination that define the North Memphis community. In this neighborhood, where opportunities often feel out of reach, Journey Coleman School is more than just a place of learning — it’s an example of unity, resilience and progress.

The celebration also marked a significant milestone for the school: being awarded a $410,000 TVA EnergyRight School Uplift grant. This substantial investment will fund critical LED lighting and HVAC upgrades, paving the way for a more sustainable and energy-efficient future. The grant represents more than just financial support; it’s a symbol of the community’s commitment to its youth. 

An Energy-Efficient Transformation

TVA EnergyRight’s School Uplift supports schools in the region by offering energy efficiency training and grants that reduce energy costs by up to $7,500 per year and improve the quality of the learning environment. The impact of School Uplift at Journey Coleman has been profound. The school has been able to implement crucial upgrades, including LED lighting and HVAC replacements, projects that are projected to save the school over $21,500 annually in energy costs. 

Principal Latoya Jeems, who has led the school through this transformative period, embraces the partnership with TVA. “The fact that TVA is invested in schools and the community — that’s the greatest impact.”

By upgrading its infrastructure and reducing energy use, Journey Coleman has not only improved its bottom line but also created a more comfortable and healthy learning environment for its students with better lighting and air quality in the classrooms. These changes have had a ripple effect as students and staff become more conscious of their energy use and how they can contribute to ongoing savings.

Empowering Students as Energy Champions

One of the most exciting elements of School Uplift is its ability to engage students in energy conservation. Journey Coleman students have become active participants in the program, learning the importance of turning off lights, managing energy consumption and understanding how their everyday actions impact the school’s energy savings. This hands-on involvement has turned students into energy champions, and their contributions are expected to drive additional savings.

As Matt Seigel, CFO for Journey Community Schools, notes, “Our students are helping us save money just by being part of the process. They’re learning valuable lessons about conservation, and they’re applying those lessons both at school and at home.”

This focus on student engagement is one of the reasons why School Uplift is more than just an energy efficiency program—it’s an educational tool that teaches real-world skills. Students are not only seeing the immediate impact of their actions but are also developing a broader understanding of sustainability and the role they can play in creating a greener future.

Community Collaboration and Support

For Journey Coleman, the success of the School Uplift program is a reflection of the power of community collaboration. The school’s leadership, staff and students worked closely with TVA and other partners to make the program a reality. These partnerships and the school’s deep commitment to energy savings have resulted in a model that other schools can look to as they embark on their own energy efficiency journeys.

Charlie Caswell, Shelby County Commissioner for District 6, emphasizes the importance of involving community partners in these initiatives. “Anytime we can, from a local government perspective, have partners that are willing to make investments into our community, it’s a tremendous advantage. It allows us to focus on other areas of need for our students and families.”

This collective effort has been critical in making Journey Coleman’s participation in School Uplift such a success. Through the program, TVA has not only provided financial resources but also ongoing support, training and guidance to ensure that the school can maximize its energy savings and continue making improvements for years to come.

A Bright Future

As Journey Coleman School continues to benefit from the changes made through School Uplift, the future looks bright for both the school and its surrounding community. The grant provided by TVA is just the beginning. These investments will continue to pay dividends as the school reaps the rewards of reduced energy costs, enhanced infrastructure and a more engaged student body.

What’s even more promising is the long-term impact of the program. By instilling a culture of energy awareness and conservation within the school, Journey Coleman is laying the foundation for a new generation of energy-conscious individuals who will carry these lessons with them into the future.

“I’ve visited multiple times over the years and have witnessed the evolution of leadership to serve this community. This is a great place to be,” explains Mark Yates, Regional Vice President West Region, TVA.

For TVA, programs like School Uplift are about more than just saving energy. They’re about empowering schools and communities to take control of their energy use, improving learning environments and investing in the well-being of future generations. Journey Coleman’s success is a shining example of what’s possible when schools and communities come together to embrace energy efficiency.To learn more about the School Uplift program and how to apply or to get involved in energy conservation efforts in your community, visit our School Uplift page here.

What you need to know about the 2025 refrigerant transition.

Residential

Big changes are coming to the air conditioning world in 2025, and we’re here to help you make sense of them! 

In broad strokes, the Environmental Protection Agency (EPA) has issued a mandate to “phasedown” hydrofluorocarbons, and it goes into effect on January 1, 2025. In this post, we’ll dive into the reasons behind the mandate, what it means for you and what we’re doing to help make upgrading your air conditioner more affordable. 

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What are hydrofluorocarbons (HFCs) and why is the EPA mandating a phasedown?

Hydrofluorocarbons are powerful greenhouse gases developed as replacements for the even more potent chlorofluorocarbons (CFCs), which were banned in the 1980s. Although HFCs may not be as detrimental as the CFCs they replaced, they’re still bad for the environment. That’s why the EPA is phasing down their production and consumption. 

What are the costs and benefits of the HFC phasedown?

According to the EPA, “The projected emission reductions of the HFC Allocation Program from 2022 to 2050 are equivalent to 4.6 billion metric tons of carbon dioxide — equal to approximately three years of U.S. power sector emissions at 2019 levels. A global HFC phasedown is expected to avoid up to 0.5°C of global warming by 2100.”

The EPA went on to calculate that the societal benefits between 2022 and 2050 would add up to $169.9 billion (in 2020 dollars).

What does the mandate do? 

Basically, it calls for a phaseout of the refrigerant seen in most existing air conditioning units. The refrigerant, R410A, is being replaced by refrigerants that are less harmful to the environment. These new refrigerants are known as R-454B and R-32, and HVAC manufacturers will begin manufacturing equipment that accommodates these new refrigerants.

What are the benefits of the 2025 refrigerant mandate?

The new refrigerants have a much lower Global Warming Potential (GWP). The GWP is a metric developed by the EPA to measure the amount of heat trapped in the atmosphere from greenhouse gases. The new lower GWP refrigerants have a 78% lower GWP than R-4120A and will help the U.S. achieve an 85% HFC phasedown by 2036.

Find your rebate

Do I have to replace my existing air conditioner?

No, you can continue to use your existing air conditioner! This new rule restricts products that use R410A from entering the market or entering operation. In fact, you’re welcome to use and repair your system as long as it lasts. However, the availability of HFCs may be harder to find as the phasedown progresses. You can find information about substitute refrigerants here.

To extend the functional life of your heating and cooling systems, be sure to schedule a tune-up in the fall and/or spring. You can find a TVA-vetted contractor here, and save $50 with our HVAC tune-up rebate. You may want to discuss your options with your contractor while they’re taking care of your system.

Tip: Upgrade to a high-efficiency HVAC system, and you could save up to 20% on heating and cooling costs.
If your system must be replaced, be sure to check out all of our rebates on heat pumps, mini splits and central air conditioners.

SEER2 FAQ

Residential

To help you see the savings light, we covered the SEER2 basics in “What’s a SEER2 rating?” Read on for a deeper dive into some frequently asked questions about SEER2.

What is SEER?

SEER stands for Seasonal Energy Efficiency Ratio. It measures how efficiently an air conditioner or heat pump cools your home. The higher the number, the more efficient the system is.

Essentially, SEER2 ratings are your heating and air conditioning systems’ version of miles per gallon (MPG) or miles per gallon equivalent (MPGe).

What’s the difference between SEER and SEER2?

Since the SEER system started in 1992, there have been a lot of changes in the technology we use to heat and cool our homes. Plus, our understanding of how things like ductwork and external static pressure can affect efficiency has improved. That’s why the SEER2 standards are now in effect. The new standards more accurately measure system efficiency in real-world conditions.

The calculation is similar to SEER: it measures the cooling output over a season divided by the energy used. However, the testing procedures are stricter, so SEER2 ratings are typically lower than SEER for the same system — not because the system got less efficient, but because the new test is more accurate.

To go back to our car analogy, imagine you’re testing a gas-powered car’s fuel efficiency, but instead of smooth highway driving, you’re towing a boat or you’re stuck in stop-and-go traffic with a trunk full of kitty litter and six cases of water. Your mileage is going to suffer from the added exertion and weight — but it’s likely how you spend a lot of your time behind the wheel! SEER2 does something similar by simulating more realistic conditions for your home’s  HVAC systems.

As of January 2024, all new heating, ventilation and air conditioning (HVAC) systems had to have a SEER2 rating. You may notice that new products may be marked with a SEER and SEER2 rating for a few years as manufacturers adopt the new standards. 

The SEER2 rating is slightly lower than the original SEER. This accounts for energy leakage in air ducts. For example, a unit with a SEER of 15 will typically have a SEER2 of 14.3. The federal tax credit is determined based on the SEER2 rating. When combined with the new increase in minimum SEER ratings, the energy savings are significant.

Simply put, SEER2 is the total heat removed from a conditioned space during an annual cooling season. Visit SEER2.com for a more detailed dive into testing requirements and procedures.To calculate an air conditioner’s SEER2, for example, we add up all the cooling the system produces during a typical cooling season and divide it by the total electricity it uses during that same time.

How is SEER2 calculated?

Higher SEER2 means the system is more efficient, just like a car that gets more MPGs or MPGes saves you money on gas or electricity.

Just as you’d divide the number miles you drove by the amount of gasoline you put in a gas-powered car to determine your miles per gallon (MPG), SEER2 is calculated by dividing the cooling output of your unit by the watt-hours of energy it consumes. 

For example, if your unit produces 10,000 BTUs of cooling power and consumes 1,000 watt-hours it would have a low SEER rating of 10.

What’s the difference between SEER2 and EER?

The efficiency of window air conditioners and portable air conditioning units is generally measured as EER rather than SEER2. SEER2 measures a system’s average efficiency over an entire cooling season, while EER measures efficiency under specific testing conditions. Smaller, single-room window units are less affected by environmental conditions (they don’t have ducts!) than central cooling systems, so EER is a better measure of efficiency for them.

What’s a good SEER2 rating?

As of 2024, the U.S. Department of Energy requires that central air conditioning systems in the seven-state Tennessee Valley region have a minimum SEER rating of 15 and a minimum SEER2 rating of 14.3. The higher the SEER2 number, the more efficient your unit will be. The more efficient your unit, the more money you’ll save over the system’s lifespan.

Typically, ENERGY STAR-certified units have a SEER2 rating of 15.2 (16 SEER) or higher.

Find your rebate

Where can I find the SEER2 rating of my unit?

Look for a bright yellow and black EnergyGuide label. If your unit is older, the label may have faded, but it should be there. Not all appliances have this sticker, but most heating and cooling units do. The SEER and SEER2 ratings will be clearly labeled. 

If you don’t see the sticker, you can do an online search using the manufacturer, model number and unit size to determine your system’s rating. 

What makes an air conditioner high efficiency?

It’s all about the compressor and condenser. Air conditioners with SEER2 ratings between 14 and 16 use the same basic technology. AC units with a SEER2 rating of 17 and higher use a different type of compressor and condenser fan to achieve maximum efficiency. 

What products are affected by SEER2 regulations?

  • Air conditioner condensing units
  • Heat pumps
  • Single packaged units
  • Evaporator coils
  • Gas furnaces

Are there rebates available on SEER2 air conditioning units and heat pumps?

Yes! You can find rebates from TVA EnergyRight here. Federal tax credits are also available.

Find your rebate

What’s a SEER2 rating?

Residential

Sorry to spoil your fun: Your HVAC contractors aren’t all-seeing masterminds, peering into your energy-savings past, present and future. SEER stands for seasonal energy efficiency ratio. When it comes to your heat pump, mini split or air conditioner, it indicates the unit’s maximum energy efficiency.

Fun Fact: Since the SEER system started in 1992, there have been a lot of changes in the technology we use to heat and cool our homes — and our understanding of how things like ductwork and external static pressure can affect efficiency have also improved. That’s why the SEER2 standards are now in effect. The new standards more accurately measure system efficiency in real-world conditions.

Basically, the higher the SEER2 rating, the more efficient the unit is. In this post, we’ll share the information you need to understand SEER2 ratings and how they apply to our Valley region. For a deeper dive into SEER2 ratings, check out our SEER2 FAQs.

Illustration of a kitchen with ENERGYSTAR appliances

What are the benefits of higher SEER2 ratings?

If you’re in the market for a new heating and cooling system, choosing a unit with a higher SEER2 rating has some notable benefits:

#1 — Energy savings

Higher-efficiency air conditioners and heating systems can cost more up-front; however, you will save money on energy costs in the long run. You can easily determine the lifetime savings for different SEER2 ratings using a SEER savings calculator. Rebates from TVA EnergyRight and federal tax credits can help offset the initial higher cost of energy efficient air conditioners and heat pumps.

Find your rebate

#2 — Quieter operations

Generally speaking, high-efficiency units are quieter than low-efficiency ones. Still, if you have a vote in your system’s location, keep it as far from a bedroom as possible. 

#3 — Gentler on the environment

Lower your carbon footprint with high-efficiency heating and cooling systems that use less energy. All air conditioning units installed after 2025 will use a new refrigerant — R-454B and R-32 — to conform to the EPA’s hydrofluorocarbon phasedown mandate.

#4 — Rebates and tax credits

We already mentioned this one, but it bears repeating! TVA EnergyRight offers rebates up to $3,000 on heat pumps and a $400 rebate on central air conditioners with a 17 SEER2 or higher. As part of the Inflation Reduction Act of 2022, federal income tax credits of up to $3,200 are available to lower the cost of energy efficient home upgrades by up to 30%.

Find your rebate

Home energy rebates are back and better than ever in 2025!

Residential

The home energy rebates that you know and love from TVA EnergyRight® and your local power company just keep getting better.  

Geothermal heat pump rebate doubles to $3,000!

Replace your existing primary electric heat source with a geothermal heat pump and your TVA-vetted contractor will submit your $3,000 rebate claim to us for processing. You may also be eligible for a yearly $2,000 tax credit on your federal tax returns.

$500 limited-time-offer on attic insulation EXTENDED

Back by popular demand! Our attic insulation rebate was such a hit that we’re extending the offer. According to ENERGYSTAR.com  you can lower your energy bill by up to 10% with home insulation and air sealing. Stay cozy and take us up on this LTO today. 

Here’s how (most) of our home energy rebates work:

To help make sure the job’s done right, most TVA EnergyRight rebate-eligible upgrades must be completed by a member of the Quality Contractor Network. We’re helping you take the guesswork out of finding a vetted, licensed and insured contractor for your home efficiency upgrades.

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Back in business for 2025!

Rebates on heating and air conditioning.

In addition to our new and improved geothermal heat pump rebate, we’re pleased to announce that rebates are still available on SEER2 mini splits, heat pumps and air conditioners. You can learn more about the benefits of higher SEER ratings right here. Or you can read up on our SEER FAQs!

$50 rebate on heating and air conditioning system tune-ups.

Our popular tune-up rebate is here for the taking! Schedule a tune-up for your heat pump or air conditioning system with a member of the Quality Contractor Network and get a check for $50!

Find a contractor

Save up to $300 with our home envelope air sealing rebate.

A $300 home envelope air sealing rebate from TVA EnergyRight and your local power company can help make your home more comfortable — and more energy efficient. 

Get your ducts in a row with a $300 duct sealing rebate.

Leaky ducts can reduce the efficiency of your heating and cooling systems by up to 20%. Improve efficiency and increase savings with a rebate on duct sealing.

Investing in home energy efficiency upgrades is a smart way to enhance comfort, reduce energy bills and contribute to a more sustainable future. Plus, it’s great for your home’s overall market value! Our rebates and financing options can help off-set the costs and keep you on-budget in 2025. Don’t forget to explore the federal Energy Efficiency Home Improvement Credit, for more ways to save!

Whether you’re sealing air leaks, upgrading insulation or investing in energy efficient appliances, investing in your home today is a great way to save in the future.

How do geothermal heat pumps work?

Residential

Everybody’s talking about them — especially now that we’re offering a $3,000 rebate on them — but what are geothermal heat pumps and how do they work? Let’s dig in! (Get it? No? Read on and you will, we promise!)

What’s a geothermal heat pump?

Even with seasonal temperature extremes — from summer scorchers to winter freezes — the ground remains at a relatively constant temperature year-round just a few feet below the Earth’s surface.1

 
A geothermal heat pump works by transferring heat to or from the ground surrounding your home and using it to heat and cool the inside of your home. The technology has been around for decades and can cut energy bills up to 50% compared to conventional fossil fuel systems2.

Here’s where the digging comes in: Geothermal heat pumps use a series of pipes or coils buried underground to work their magic. In the winter, the ground absorbs and stores heat from the sun, even if the surface air temperature is cold. (That’s why a gardener can yank a good carrot out of the ground well into the winter.) 

During the winter months, a geothermal heat pump circulates a water-based solution through the ground loop, absorbing stored heat. Then, the heated solution is transferred to a heat exchanger, where it warms the air circulated through your home. Dig it?

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Illustration of how a geothermal. heat pump works in the winter and in the summer.

The anatomy of a geothermal heat pump

A geothermal heat pump has three main components: an indoor unit, ground loop and a distribution system.3

What does the indoor unit do?

Think of this as the command center or the “brain” of your heat pump system. It contains the compressor, heat exchanger and system controls. 

What does the ground loop system do?

If the indoor unit is the brains of the operation, then the ground loops are the veins and arteries. There are three different types of ground loop systems, and the geography of your property dictates which system will work best for your home. 

In the summer, the process reverses and heat is extracted from your home and transferred to the cooler ground around it, using the same loop system. This not only cools your home but also lowers humidity levels, further enhancing comfort during the heat of the summer. 

Horizontal loops are installed in shallow trenches and are often used for residential or small commercial properties.

Drilled deep into the ground, vertical loops are a good option for more heavily populated areas or for urban homes.

If you’re lucky enough to live near a pond or a lake, water loops use nearby bodies of water for heat exchange.

What does the distribution system do?

If you guessed that it’s the “heart” of the operation, then we’re on the right path. Once your indoor unit captures or releases heat, the distribution system pumps it throughout your home through a network or ducts or radiant floor heating. If you’re retrofitting your home, existing ductwork can usually be enlisted to do the job.

How are geothermal heat pumps installed?

Installing a geothermal heat pump is a complex process that requires professional expertise. To help make sure the job’s done right, all TVA EnergyRight rebate-eligible geothermal heat pumps must be installed by a member of the Quality Contractor Network.

Generally speaking, here’s how the process works:

Step 1: Site assessment

Your selected member of the Quality Contractor Network will evaluate your property to determine if it’s suitable for a geothermal system. They’ll consider soil conditions, land area and the proximity of your home to any underground water sources. This initial assessment helps determine which ground loop configuration is best for your system.

Step 2: Estimating and scope of work

Your contractor will provide you with a detailed estimate and a clear scope of work.

Step 3: Excavation and ground loop installation

For horizontal or vertical loops, trenches or wells are dug to install the pipes. This part of the process may take a few days, depending on the type of loop and property size.

Step 4: Indoor unit installation

This part of the process is pretty much like installing a conventional furnace and connecting ductwork.

Step 5: Connecting the system

Once the ground loop and heat pump are connected, the system is filled with a water-based solution that circulates through the loop to transfer heat to and from the ground and into your home.

Step 6: System testing

Your contractor will carefully check for any leaks, verify temperature settings, and explain how to operate and maintain the system.

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How long do geothermal heat pumps last?

They’re more costly than a conventional heating or cooling system, but they’re made to last. They’re also up to 65% more efficient than a traditional unit and pay themselves back over time in energy savings — typically within 10 years. 

With good routine maintenance, you can expect your geothermal heat pump’s indoor components to last approximately 25 years, rather than the 10- 15-year lifespan of a conventional system. Your ground loops should last for 50-plus years.4

To make geothermal heat pumps more affordable, we’re offering a $3,000 rebate on qualifying systems and federal tax credits of up to 30% of the installed cost may also be available.

Why are geothermal heat pumps such a big deal?

A recent analysis from Oak Ridge National Laboratory (ORNL) and the National Renewable Energy Laboratory (NREL) found that, coupled with building envelope improvements, installing geothermal heat pumps in approximately 70% of U.S. buildings could save as much as 593 terawatt-hours of electricity generation annually. It could help the U.S. avoid seven gigatons of carbon-equivalent emissions by 2050.

“To put that in context, 593 terawatt-hours is about 15% of the current annual electricity demand in the United States,” said Jonathan Ho, lead NREL researcher for the analysis.

The report went on to note that “Widespread geothermal heat pump installations could also save 24,500 miles of new grid transmission lines from needing to be built (36.7 TW-mi) — the equivalent of crossing the United States eight times — because of a reduced need for generation capacity, storage, and transmission compared to other energy pathways. This means geothermal heat pumps could provide benefits to all electricity consumers, even those who cannot install geothermal heat pumps themselves.”5


1Energy.gov, “Geothermal Heat Pumps.”

2Energy.gov “5 Things you Should Know About Geothermal Heat Pumps.”

3The Old House, “Geothermal Heat Pump: How It Works”

4Energy.gov “5 Things you Should Know About Geothermal Heat Pumps.”

5NREL.gov, “New Analysis Highlights Geothermal Heat Pumps as Key Opportunity in Switch to Clean Energy.”

3 soups from around the Valley region to keep your kitchen cozy!

Residential

If the weather outside is feeling frightful, it’s time to cook up something delightful! Here are three warming soups to keep your kitchen cozy and your belly warm.

Kentucky Burgoo

This hearty, favor-packed stew will get the engines running! This rich, slow-cooked stew has earned a spot in many hearts and kitchens. Known for its versatility, Kentucky Burgoo traditionally includes a blend of meats like beef, chicken, pork or even venison, squirrel or rabbit, if you’re feeling the need for authenticity. 

The beauty of Burgoo lies in its “whatever’s on hand” approach — families often made it with seasonal vegetables like tomatoes, corn, carrots, potatoes and lima beans. Each ingredient is slowly simmered until the flavors meld into a thick, hearty stew with a slight kick of spice.

Get your burgoo on!

The one thing everyone agrees on: You can’t rush a good burgoo. Get the recipe here.

Tennessee Doodle Soup

The good folks of East Tennessee know what’s up with this comforting, cold-killing concoction. Made up of chicken drippings, vinegar, cayenne pepper and flour, the dish even has a festival in its honor — Bradford Tennessee’s Dood Soup Days. According to the Tasting Table, “Locals eat the soup with crackers, while others serve steaming bowls with biscuits fresh from the oven.” 

It’s a good day for doodle soup.

No two doodles are the same, but for a little more guidance, get the “recipe” here.

Alabama Camp Stew

A smoky and satisfying meal, Alabama Camp Stew is a great cold-weather beater. Made with a base of smoked meat and a variety of vegetables, this stew is both smoky and sweet. Ingredients like tomatoes, lima beans, corn and potatoes are slow-cooked with the meat until tender. The stew’s slightly thick texture and rich flavor make it an ideal meal to enjoy around a campfire or your kitchen table.

Just don’t call it Brunswick stew.

This beloved Southern staple has its origins in outdoor cooking, hence the “Camp Stew.” We recommend using your electric stove, naturally! Get the recipe here.