Rebates & Incentives

• Applicant must be a residential customer of Alabama Power.
• Residence must be a single-family home.
• Customer must verify they own or lease a battery electric vehicle (BEV) or plug-in hybrid electric vehicle (PHEV) at the installation site.
• Only one charger rebate allowed per installation site.

• Charger must be a Level 2 (240V) electric vehicle charger with a dedicated circuit.
• Customer must provide a picture of installed charger, proof of purchase and serial number.
• Charger must have been purchased within 90 days of rebate application date.

Applicants must:

• Be an active residential customer of Alabama Power

• Purchase and install a smart thermostat on or after November 1, 2023

• Submit proof of purchase on or before December 1, 2024, containing the following information:

  • Purchase date

  • Brand and model

  • Amount paid for the thermostat

  • Proof of payment

• Reside in a single-family residence, including single-family detached homes, townhomes, condominiums and mobile homes

• Multi-family residences, such as apartments, do not qualify

• Be the homeowner or have the homeowner’s consent to install the thermostat

The applicant’s account must not have received a smart thermostat rebate or free smart thermostat from Alabama Power in the past.

• Reimbursement amount will be based on the price the customer paid for the thermostat(s) as shown on proof of payment, not to exceed $200. Reimbursement is based on product cost only, and will not include taxes, shipping or other added costs.

• The reimbursement will be in the form of a digital gift card sent via email from Tango Card. The original link does not expire. Customers may choose cards from a variety of vendors including Amazon, Target Chipotle and many more. The gift cards do not expire. Customers may also choose a digital Mastercard. Please note that the Mastercard option must be activated within 4 months and expires 7 months after activation.

• Limited to one reimbursement per eligible account

Thermostats must be:

• New (used, rebuilt or refurbished equipment is not eligible)

• Installed at the Alabama Power service address listed on the application

• Listed on the Qualifying Products List at the time of purchase

  Shop Smart Thermostats

• Limited-time offer effective April 1, 2024; subject to change at any time 
• Applicants must convert from an existing gas water heater to a 40- or 50-gallon standard tank electric water heater 
  
• Applicants must own property where the water heater will be installed 
  
• The location where the water heater will be installed must:
  • Have an active Alabama Power residential service account (temporary service accounts do not qualify)
  •  Be an existing single-family home (multi-family homes, such as apartments, mobile/manufactured homes, and homes less than a year old do not qualify)
  •  Not have received an Alabama Water Heater Program incentive (free equipment or rebate) in the past eight years 
• Must be the primary source of water heating for the home 
  
• Customers can no longer apply in Alabama Power merchandise sales offices; however, approved customers will be directed to these offices to pick up their free water heater. 
  
• Applicants must submit: 
  
  • Photos of existing gas water heater and nameplate showing model and serial number 
    
  • Photo of capped gas lines and/or remaining gas water heater flue, if gas water heater has been removed 
    

• Limited-time offer effective April 1, 2024; subject to change at any time 
• Applicants must convert from an existing gas water heater to an electric water heater 
• Applicants must own property where the water heater will be installed 
• Water heaters must be purchased and installed after April 1, 2024 
• The location where the water heater will be installed must: 
  • Have an active Alabama Power residential service account (temporary service accounts do not qualify) 
  • Be an existing single-family home (multi-family homes, such as apartments, mobile/manufactured homes, and homes less than a year old do not qualify) 
  • Not have received an Alabama Water Heater Program incentive (free equipment or rebate) in the past eight years 
• Must be the primary source of water heating for the home 
• Applicants must submit proof of purchase (receipt/invoice) containing the following information: 
  • Purchase date 
  • Brand, model, and gallon size of water heater 
  • Amount paid for the water heater 
  • Proof of payment

• Applicants must convert from an existing gas water heater to a hybrid (heat pump) water heater; eligible water heaters must use air transfer technology to heat water (other types of high efficiency water heaters do not qualify; tankless water heaters do not qualify).
• Qualifying water heaters must be purchased and installed within the last 90 days
• The location where the water heater will be installed must:
  • Have an active Alabama Power residential service account (temporary service accounts do not qualify)
  • Be an existing single-family home (multi-family homes, such as apartments, mobile/manufactured homes, and homes less than a year old do not qualify) 
  • Not have received an Alabama Power Water Heater Program incentive (free equipment or rebate) in the past eight years
• The owner of the home must apply for the rebate
• Applicants must submit proof of purchase (receipt/invoice) containing the following information:
  • Purchase date
  • Brand, model and gallon size of water heater
  • Amount paid for the water heater
  • Proof of payment
• Must be the primary source of water heating for the home

Applicants must:

• Be an active residential customer of Alabama Power
• Be the property owner
• Switch to an all-electric heat pump from a gas furnace
• Complete a W-9 for rebate processing

The heat pump must:

• Be the dominant (largest) HVAC unit in the home

• Have an energy efficiency rating of 20 SEER or 18 SEER2 or higher

• This rebate may be subject to an onsite inspection by Alabama Power personnel. If the application information is deemed false, the customer will be expected to repay the rebate amount.

Whatever type heat pump you choose, the efficiency rating of the equipment is very important. Heat pumps are rated by a Seasonal Energy Efficiency Ratio (SEER). The higher the SEER, the greater the efficiency and the less it costs you to cool your home. The rating is much like the MPG rating for an automobile. The minimum SEER rating on equipment manufactured today is 15 SEER. While units rated 15 SEER provide savings, we suggest at least 20 SEER or 18 SEER2 for even more savings. SEER2 rating stands for Seasonal Energy Efficiency Ratio 2. This is the new main energy efficiency ratio introduced by the US Department of Energy in 2023. While it’s based on the same calculation as SEER, it’s tested under different conditions. Higher SEER-rated equipment is widely available and efficiency ratings will vary according to the BTUH size and brand selection. A unit with a high SEER rating may cost more initially, but because of its low operating cost, it will pay for itself over time.