Why is SRP giving a rebate for getting an AC tune up?

Utility Company Rebates for Air Conditioners – What’s the Rub?

I’ve met people that generally loathe the local their power company. After all, these are the same companies that charge us thousands of dollars per year to keep the lights on, run our air conditioners, and wash our clothes on a daily basis, and most of us don’t have a choice who to buy from. For the majority of us, we are stuck with whoever provides electrical service to our neighborhood.

Here in the Phoenix, AZ area, most of us either have SRP (Salt River Project) or APS (Arizona Public Service) with a few exceptions, like City of Mesa providing power to small pockets of Mesa, Arizona.

Owning an air conditioning and heating company that also conducts hundreds of home energy audits in Arizona for twenty plus years, I’ve seen a lot of homeowners’ power bills. They range from the lucky few with smaller bills (usually because they live in super-efficient homes) – to people whose summer bills are in the $700 to $800 range in the summer…sometimes more. On average, most of the bills I see are between $300 – $400 per month in the summer, and often because they live on the edge of discomfort and are afraid to set their AC thermostat much lower than 82 degrees. 

Most Phoenicians’ I talk to already know that their AC unit(s) account for 50% of that bill in the average home and think the power company is delighted to take their money. So, some are skeptical when it comes to air conditioning utility rebate programs (but happy to take advantage of them if they can put a little money back in their pocket).

Why Do the Utility Companies Offer AC Rebates?

If you’re an APS or SRP client, surely, you’ve seen or already taken advantage of some of their AC rebate programs. Both offer cash rebates for air conditioner replacements, and often they come out with rebates for AC Tune-ups. (As I type this, SRP just announced a rebate for a $29.95 AC Tune Up). As with the current promotion from SRP, these rebates most often are attached to a “buy down” of the AC Contractors usual price for this service. I.E. You pay $29.95 and SRP sends the contractor a check for the difference.


But why would the power company pay you to make your home more efficient?


  • First, they are using “rate-payer” money (they call their customers “rate-payers” – seriously). In other words, they have already factored in the cost of these programs and we ALL pay into them already. Only a fraction of the “rate-payers” will take advantage of these programs meaning there’s nothing coming out of the utility company’s (or shareholders in the case of APS) pocket.


  • Second, the utilities chief concern is having enough power to meet peak demand (when the most energy is being used during a 24-hour period.) It’s cheaper for the utility company to conserve power during peak demand, than it is to build a new power plant. Not only is it cheaper, but many utility providers cannot build new power plants even if they want to due to government regulations and mandates. So, they look at ways they can encourage people to use less power during these peak hours because of this and know energy efficient air conditioners and appliances help them meet that objective.


The answers to the why question go far beyond just those two points, but that’s a high-level view of why these power companies run and promote many of these energy efficiency rebate specials and programs.


Get your SRP AC Checkup rebate money!

If you are a SRP customer, you’re already paying for these rebates, so you may as well take advantage of getting some of your own money back!

How do I get my SRP rebate?

One example to get some rebate money back from your power company is…call my company!

Magic Touch Mechanical is a “SRP Certified Contractor” and we are participating in this months $29.95 SRP AC Checkup Rebate program (you save $50 off the regular price and get your AC in tip-top shape before summer hits).

  • As a favor to our APS clients we are offering the same discount even though APS is not participating in the buy-down program.

What other AC rebates are available from SRP and APS?

The AC rebates are not just for tune-ups and there is up to $800 per unit rebate money available from SRP for AC replacement with more efficient equipment (up to $200 for APS customers).

There are also cash rebates for duct testing and leak sealing as well as a few other home energy efficiency improvements. You can check out the details of each rebate on our website at:



What are the utility rebates available from SRP and APS for commercial buildings?

The utility companies do offer AC rebates for commercial buildings as well, and some of them are significant to say the least. You can check out the rebates available on the same link I provided above.


What if I don’t live in your service area, how do I find out about AC rebates for my State?

There is a great consumer resource available called DSIRE (Database of State Incentives for Renewables & Efficiency® http://www.dsireusa.org )

I have found the DSIRE website to be pretty accurate and up to date, however you can also contact your utility company directly and they should be able to connect you with a Rebate Program Manager who can provide you with the details of any programs they participate in.