TVA EnergyRight Rebates for Middle Tennessee Homes

Most of Middle Tennessee buys its electricity from a local power company that distributes power from the Tennessee Valley Authority: Nashville Electric Service (NES) in Davidson County and parts of six surrounding counties, Middle Tennessee Electric (MTE) across Rutherford, Williamson, Wilson and Cannon, and others like Columbia Power & Water and Duck River Electric in the southern suburbs. Through TVA EnergyRight, these utilities offer rebates on efficiency upgrades. With the federal home energy tax credits gone for 2026 work (see our tax credit post), these rebates are now the main incentive for many projects.

The amounts below are from TVA EnergyRight's residential rebates page as we read it on October 20, 2026. Programs change. Check current terms before you buy.

The current rebate list

TVA says a heat pump can save up to 20% on heating and cooling costs, and geothermal up to 50%. Those are TVA's claims, not guarantees for your house.

The rule that matters most: use a Quality Contractor Network member

TVA says all rebate-eligible upgrades must be done by a member of its Quality Contractor Network and meet TVA standards in effect on the installation date. The contractor also submits the rebate for you. Then you get an email with a redemption code to claim it.

What that means in practice:

• Ask early. Before you sign, ask whether the contractor is in the network and will file the rebate. If not, the rebate may be lost.
• DIY doesn't qualify. Insulation you blow in yourself won't earn the $300.
• Get the efficiency rating in writing. Whether you get $800 or $500 on a heat pump depends on the SEER2 rating, so put the model number and rating in the contract.

Planning around the rebates

Replacing a dying system? If you have central AC with a gas furnace, compare a 17+ SEER2 heat pump (an $800 rebate) with a new AC (up to $400). See our heat pump vs. gas furnace comparison and HVAC.

Adding a room or finishing a space? TVA says ductless mini splits are "perfect for new additions" and older homes. One can avoid extending ductwork. See home additions.

Do the envelope first. Air sealing, attic insulation and duct sealing each have their own rebate, and they reduce the size of the HVAC system you need. If a contractor sizes a new system, ask whether they accounted for the insulation work you're planning.

Water heater due? A heat pump water heater carries one of the largest single rebates on the list. It needs space and airflow, so ask about location (garage, basement or utility room).

Free assessments and financing

TVA EnergyRight also lists:

• a free DIY online home energy assessment;
• an in-person home energy evaluation with a TVA home energy advisor, at no cost for eligible homes;
• $0-down financing that may be offered by your local power company;
• Home Uplift, which offers free upgrades to income-eligible customers (see our Home Uplift and weatherization guide).

Which utility serves you?

Rebates run through TVA, but your local power company matters for financing and for some programs. In the Nashville area:

• NES serves all of Nashville and Davidson County and parts of the six surrounding counties.
• MTE serves mainly Rutherford, Cannon, Williamson and Wilson counties, including cities like Murfreesboro, Smyrna, Franklin, Brentwood and Mt. Juliet.
• In Spring Hill, the city says three providers serve different parts of town: MTE, Columbia Power & Water and Duck River Electric.

Your bill tells you which one is yours. Each area hub lists the utilities we've confirmed for that city.