Heat pumps in Alabama

Alabama runs second in the country at 39.2% of homes on a heat pump. Split between TVA territory in the north and Alabama Power in the south, it has had heat pumps as the default for decades. If you already have one, the live question is whether a modern variable-speed unit would cut the bill enough to justify replacing it early.

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AL

Heat pump adoption

EIA RECS 2020 microdata ↗

39.2% of Alabama homes use a heat pump as their main heat

Goal: every home

Central heat pumps and ductless mini-splits combined, counted as the home's main heating equipment.

Episodes

Recorded in Alabama

Homeowners and contractors in AL, in their own words.

Money and next steps

What Alabama pays toward one

  • Alabama Power — Ways to Save

    Rebates and financing for high-efficiency heat pumps across most of the state. In northern Alabama, TVA's EnergyRight program covers homes served by local power companies instead.

    Program details →

  • Federal Home Energy Rebates

    The IRA rebate programs (HEAR and HOMES) survived the 2025 tax changes — they were grants to states, not tax credits. Each state runs its own, and they are at different stages: some open, some already out of money, some yet to launch. Check where Alabama stands before you count on it.

    Program details →

The federal 25C tax credit — 30% back, up to $2,000 on a heat pump — ended for systems placed in service after 31 December 2025. If you had one installed in 2025 or earlier you can still claim it; there is no successor credit. Incentives move fast, so check DSIRE for what is current in Alabama. Last checked September 2026.

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The numbers

What a heat pump here has to cover

  • 35°F

    Coldest month average low

    Birmingham · NOAA 1991–2020 normals

  • 91°F

    Warmest month average high

    Birmingham · NOAA 1991–2020 normals

Coldest month, average low Warmest month, average high

Both loads matter here — cold snaps are real, and so are the summers. A system sized only for heating will short-cycle in August; one sized only for cooling will lean on backup heat in January. Getting the balance right is the job.