Income Levels
Focus on Energy's insulation rebates and the federal HEAR and HOMES rebates pay more to households with lower incomes. The levels compare your household income with the area median income (AMI) for your county and household size.(Focus on Energy) Dane County's 2026 limits:(Focus on Energy income application)
| People in household | 80% of AMI | 150% of AMI |
|---|---|---|
| 1 | $74,800 | $142,100 |
| 2 | $85,450 | $162,400 |
| 3 | $96,150 | $182,700 |
| 4 | $106,800 | $202,950 |
| 5 | $115,350 | $219,200 |
| 6 | $123,900 | $235,450 |
| 7 | $132,450 | $251,700 |
| 8 | $141,000 | $267,900 |
- Everyone who lives in the home counts, related or not, and all income counts, including Social Security.(Focus on Energy)
- Get income approval before the work is finished; it can't be added afterward. Focus answers within three business days and gives you a confirmation number for your contractor.(Focus on Energy)
- Enrollment in WHEAP energy assistance, Medicaid, FoodShare, SSI or Weatherization Assistance proves income without a separate application. Otherwise, use the first two pages of your latest federal Form 1040.(Focus on Energy)
- Furnace, boiler and heat pump discounts use just two levels, standard and income-qualified.(Focus on Energy)
Insulation and Air Sealing
For work done on or after January 1, 2026, in existing 1–3 unit homes:(Focus on Energy)
| Measure | Above 150% AMI | 80–150% | Below 80% |
|---|---|---|---|
| ENERGY STAR air sealing (with an energy assessment) | $850 | $1,160 | $1,475 |
| Attic insulation | $650 | $750 | $850 |
| Wall insulation (or framed floor) | $575 | $575 | $575 |
| Foundation insulation (basement or crawlspace) | $90 | $120 | $150 |
| Sill (rim joist) insulation | $90 | $120 | $150 |
| Seal and insulate ducts in an unconditioned attic or crawlspace | $1,000 | $1,000 | $1,000 |
| Seal and insulate ducts in a basement or unvented crawlspace | $90 | $90 | $90 |
| Do-it-yourself attic insulation plus air sealing | $200 | $200 | $200 |
- A participating Trade Ally contractor has to do the work, and the home must get at least 51% of its heat from a participating utility. Homes heated mainly with wood, oil or propane don't qualify.(Focus on Energy)
- Air sealing counts only alongside contractor-installed attic or wall insulation, with blower door tests before and after. The energy assessment typically costs $500 to $700.(Focus application)
- Attic: at least 600 square feet, from R-19 or less to R-38 or more.(Focus application)
- Do it yourself: $200 for attic insulation and air sealing done together, at least 600 square feet, ending at R-42 or more, with photos, a sketch and receipts.(Focus on Energy)
- No repeat rebate in a category the home got one for in the past three years. Contractors run combustion safety checks, and CO alarms are required on every heated floor.(Focus on Energy)
Air sealing and attic insulation are also the fix for ice dams.
Heating and Cooling
Furnaces, boilers and air-source heat pumps get an instant discount taken off your contractor's invoice; there's no form to file. Your contractor has to buy the equipment from a participating distributor.(Focus on Energy)
| Equipment | 2026 amount | ||
|---|---|---|---|
| Gas furnace, 95% AFUE or higher | $100 standard, $400 income-qualified | ||
| Gas boiler, 90% AFUE or higher | $300 standard, $500 income-qualified | ||
| Gas boiler, 95% AFUE or higher | $350 standard, $550 income-qualified | ||
| Gas combination boiler, 95% AFUE or higher | $450 standard, $650 income-qualified | ||
| Air-source heat pump, Tier 1 (15.2 SEER2, 8.1 HSPF2) | $400 standard, $600 income-qualified | ||
| Air-source heat pump, Tier 2 (15.2 SEER2, 8.5 HSPF2) | $500 standard, $700 income-qualified | ||
| Air-source heat pump, Tier 3 (16.0 SEER2, 9.0 HSPF2) | $600 standard, $800 income-qualified | ||
| Air-source heat pump, Tier 4 (16.0 SEER2, 10.0 HSPF2) | $700 standard, $900 income-qualified | ||
| Geothermal heat pump (home has gas service) | $1,000 | $1,000 | $1,000 |
| Geothermal heat pump (no gas service available) | $750 | $750 | $750 |
| Smart thermostat | $50 | $50 | $50 |
| ECM blower motor swap in a 90%+ furnace | $25 | $25 | $25 |
- Heat pump tiers are set by efficiency and apply to systems under 65,000 Btu/h. If you heat with propane or another non-utility fuel, the heat pump amounts are $100 to $150 standard and $300 to $350 income-qualified.(Focus discount tables)
- For income-qualified amounts, you get a qualification code from Focus to give your contractor.(Focus discount tables)
- Focus has no central air conditioner rebate and no separate cold-climate heat pump tier in 2026.(Focus on Energy)
- Geothermal is a mail-in rebate with efficiency and installation requirements.(Focus on Energy) Smart thermostats: $50, one per heating system and two per home, replacing a manual or programmable thermostat.(Focus on Energy)
- New equipment must replace existing equipment doing the same job, installed in 2026.(Focus on Energy)
Water Heaters
| Water heater | 2026 instant discount (same for everyone) | ||
|---|---|---|---|
| Heat pump water heater (under 120 gallons, 3.3+ UEF) | $300 or more | $300 or more | $300 or more |
| Indirect water heater on a 90%+ boiler | $200 or more | $200 or more | $200 or more |
| Gas tankless water heater (0.87+ UEF) | $100 or more | $100 or more | $100 or more |
Focus lists these as minimum amounts, through a contractor buying from a participating distributor.(Focus on Energy) Households under 150% of AMI can add up to $1,750 from HEAR for a heat pump water heater.(Focus on Energy)
Solar
- Focus pays $600 per kilowatt, up to $2,400, for solar on a single-family home. Reserve the rebate online before you install. The system has to face within 135 degrees of due south, with under 15% shading.(Focus on Energy)
- The federal solar tax credit (25D) ended for systems finished after December 31, 2025.(IRS)
- MG&E credits power your panels send to the grid at generally the same rate you pay for power, unless you produce more than you use over 12 months.(MG&E)
Federal HEAR and HOMES Rebates
Wisconsin got $149 million for two federal programs, both run by Focus on Energy and both open now.(Focus on Energy) The state regulator says Wisconsin received updated federal guidance and changes may follow.(PSC of Wisconsin)
- HEAR is for households under 150% of AMI. Below 80%, it covers 100% of the cost; from 80% to 150%, half. Lifetime cap: $14,000 per household. Item limits: heat pump $8,000, electrical panel $4,000, wiring $2,500, heat pump water heater $1,750, insulation and air sealing $1,600, heat pump dryer $840, electric range $840.(Focus on Energy)
- HOMES is open to any income but needs a home energy assessment and a project modeled to save at least 20%. For 20–34% savings: up to $5,000 (100% of cost) below 80% of AMI, $2,000 from 80% to 150%, and $1,500 above 150%. For 35% or more: $10,000, $4,000 and $3,000.(Focus on Energy)
- Since September 1, 2026, HOMES accepts some equipment that isn't ENERGY STAR certified, including gas furnaces and boilers.(Focus on Energy) HEAR store purchases no longer cover switching from gas or another fuel to electric.(Focus on Energy)
- Contractor work needs an IRA Registered Contractor, a separate list from Focus Trade Allies. You can't get HOMES and HEAR for the same upgrade, but Focus's regular rebates can be added.(Focus on Energy)
- Renters can qualify on their own income if the owner agrees.(Focus on Energy)
Tax Credits That Ended
The 2025 federal budget law ended these credits:(IRS)
- Energy Efficient Home Improvement Credit (25C), for insulation, windows, heat pumps and furnaces: no credit for work placed in service after December 31, 2025.(IRS)
- Residential Clean Energy Credit (25D), for solar, geothermal and batteries: no credit after December 31, 2025, even if you paid in 2025 for work finished in 2026.
- EV charger credit (30C): ended for property placed in service after June 30, 2026.
Utility Programs
MG&E, Alliant Energy and several Dane County municipal utilities, including Sun Prairie, Stoughton and Waunakee, take part in Focus on Energy.(Focus on Energy) MG&E serves Madison, Monona, Middleton, Fitchburg, McFarland and nearby communities;(MG&E) Alliant serves Verona, DeForest, Sun Prairie, Oregon and parts of Madison and Fitchburg, among others.(Alliant Energy)
- MG&E sends customers to Focus for rebates.(MG&E) MG&E Connect pays $25 for enrolling a smart thermostat, plus up to $25 a year, and has a smart water heater program with a waitlist.(MG&E)(MG&E)
- MG&E Shared Solar: buy shares in a solar array for a one-time $15 or $7.50 per share, covering up to half your yearly use. MG&E says it's priced slightly above the standard rate.(MG&E)
- Alliant Energy points Wisconsin customers to Focus for heating, cooling and federal rebates.(Alliant Energy) Its Smart Hours program pays a $25 card to enroll a smart thermostat or electric water heater, plus $25 a season.(Alliant Energy) Its marketplace takes $500 off a Level 2 home EV charger.(Alliant Energy)
- No residential loan program from Focus, MG&E or Alliant was found.(Focus on Energy)
How to Apply
- Check that your utility takes part in Focus on Energy, and get income approval first if you might qualify for a higher level.(Focus on Energy)
- Find a participating Trade Ally contractor (or an IRA Registered Contractor for HEAR and HOMES).
- Do the work in 2026 and keep itemized invoices.
- Apply within 60 days of installation, and no later than January 31, 2027. Checks arrive 8 to 10 weeks after approval.(Focus on Energy)
Some Focus documents still show older or later deadlines: a January 2026 flyer says August 31, 2026, the geothermal page still says August 31, 2026, and the May 2026 insulation application says February 28, 2027.(Focus application) Confirm with Focus on Energy at 800-762-7077 (weekdays 9 to 5) before you rely on a date. Rebates can't exceed the project's cost, and each piece of equipment gets one rebate.(Focus on Energy)
Questions
What energy rebates can Madison homeowners get in 2026?
Most come from Focus on Energy, the statewide program that MG&E, Alliant Energy and Dane County's municipal utilities take part in: insulation and air sealing, furnaces, boilers, heat pumps, water heaters, smart thermostats and solar. Federal HEAR and HOMES rebates, also run by Focus, add more for many households.
Is there still a federal tax credit for insulation, heat pumps or solar?
No. The IRS says the home improvement credit (25C) and the residential clean energy credit (25D) ended for work finished after December 31, 2025. Paying in 2025 doesn't help if the installation was finished in 2026.
What's the deadline for 2026 Focus on Energy rebates?
For work done in 2026, Focus's current pages say to apply within 60 days of installation and no later than January 31, 2027. Some older Focus documents list other dates, so check with Focus (800-762-7077) before you count on one.
Do I need a specific contractor?
For most Focus rebates, yes: a participating Trade Ally contractor. Federal HEAR and HOMES work needs an IRA Registered Contractor, which is a separate list. The do-it-yourself attic rebate and some store purchases are the exceptions.
Can I combine Focus on Energy and federal rebates?
Yes. Focus says projects that get federal HEAR or HOMES rebates may also get its regular rebates. You can't get both HOMES and HEAR for the same upgrade, and no rebate can be more than the project's cost.
Does MG&E have its own rebates?
MG&E sends customers to Focus on Energy for rebates. Its own programs pay small rewards for enrolling a smart thermostat or water heater in MG&E Connect, and it runs the Shared Solar program.