Oncor Energy Efficiency Incentives

Low-Income Weatherization Standard Offer Program

Air leaks and deficient home insulation increase the workload on space heating and air conditioning systems. This happens because they must compensate for a higher heat gain during summer, and a higher heat loss during winter. Since the energy consumption of HVAC equipment increases, electricity and gas bills also go up.

The Low-Income Weatherization Standard Offer Program (LIW SOP) offers cash incentives for Texas households with an income at or below 200% of the federal poverty line. The program helps these homes improve their building envelope at little or no cost. The three most common upgrades for building envelopes in residential properties are insulation, caulking and weatherstripping:

• Insulation reduces heat flow through roofs, walls and floors. This keeps the heat outside during summer, and inside during winter. Insulation is important in all areas, but the roof and basement have a higher priority – unwanted heat flow occurs mostly in these areas.
• Caulking is used to seal air leaks around unmoving components like lighting fixtures, plumbing fixtures, door frames and window frames.
• Weatherstripping has the same function as caulking, but is used around moving elements like doors and windows.

Home upgrades from the LIW Program provide immediate energy savings without having to upgrade equipment, often at zero cost. The 2023 LIW program provided $5.1 million in total incentives, achieving 16,471,480 kWh in energy savings and 12,781 kW in demand savings.

The 2024 Low-Income Weatherization Program (LIW) opened for applications on January 29. Oncor has assigned a budget of $3,000,000 for weatherization measures and $500,000 for HVAC. The program closes when the budget is depleted, but Oncor may decide to increase funding. 

The incentive rates for insulation are calculated per square foot, and the rate depends on the type of heating system used:

Type of Heating System	LIW Incentive per Sq. Ft.	Incentive for 1,500 Sq. Ft.
Electric resistance heater	$0.65 / sq.ft.	$975
Electric heat pump	$0.40 / sq.ft.	$600
Gas-fired heater	$0.30 / sq.ft.	$450

These incentives are available for properties with an existing insulation level of R-22 or less, and they must upgrade to R38 or better. Air sealing and insulation upgrades must meet certain requirements to be eligible, which are summarized below:

Type of Weatherization	Approved Materials	Technical Requirements
Air infiltration reduction with caulking	-Acrylic latex + silicone -Caulk -Polyurethane expanding foam -Elastomeric sealant -Fiber-backing mastic compound	-ASTM compliant -Visible caulk should be clear -Minimum service life: 10 years
Air infiltration reduction with weatherstripping	-Foam tape -Rigid gaskets	-Closed cell -UV resistant -Adjustable and permanently attached -Minimum service life: 10 years
Insulation	-Mineral fiber (blanket or loose fill) -Cellulose -Vermiculite (loose fill) -Perlite (loose fill)	-ASTM compliant -Ceiling insulation up to R-22 is eligible for replacement under the program, and the upgrade must achieve at least R-38. -At least R-13 for walls -At least R-19 for knee walls -At least R-15 for floor (pier and beam).

*Infiltration reduction must be validated with a blower door test, and the contractor must also test for carbon monoxide (CO) to ensure occupant safety.

To complement weatherization, the LIW program offers incentives for energy efficiency measures that cover areas like air conditioning, ventilation and hot water.

• Measures that have been validated in the Texas Technical Reference Manual (TRM) are eligible, and contractors can also propose custom measures, subject to approval.
• Additional measures can only be proposed after improving the building envelope with insulation or air sealing, since the program focuses on weatherization.

The 2024 LIW program has an HVAC efficiency subprogram with a budget of $500,000. To qualify, air conditioners and heat pumps must meet the following energy efficiency requirements:

Type of HVAC System	Energy Efficiency Requirements
Air conditioner, split type, nameplate capacity below 45,000 BTU/h	Minimum SEER2 = 14.3 Minimum EER2 = 11.7
Air conditioner, split type, nameplate capacity of 45,000 BTU/h or higher	Minimum SEER2 = 13.8 Minimum EER2 = 11.2
Air conditioner, single package	Minimum SEER2 = 13.4 Minimum EER2 = 10.9
Heat pump, split type	Minimum SEER2 = 14.3 Minimum EER2 = 11.7 Minimum HSPF2 = 7.5
Heat pump, single package	Minimum SEER2 = 13.4 Minimum EER2 = 10.9 Minimum HSPF2 = 6.7

*These efficiency requirements apply for both the Low-Income Weatherization (LIW) Program and the Home Energy Efficiency (HEE) Program.

Note: SEER2, EER2 and HPSF2 refer to energy efficiency metrics determined under the new testing requirements that took effect in January 2023. They have replaced the older SEER, EER and HSPF ratings.

The incentives for eligible HVAC systems  are subject to the following limits in the LIW program:

HVAC System Capacity (tons)	Maximum Incentive ($)
2 tons	$2,100
2.5 tons	$2,300
3 tons	$2,700
3.5 tons	$3,000
4 tons	$3,300
5 tons	$3,500

All new HVAC installations must include a smart thermostat to be eligible for these incentives, and the model must be listed by the US Department of Energy.

Oncor’s 2024 Low-Income Weatherization Program closes for 1-4 family homes on November 15 and for multifamily buildings on October 31.

Home Energy Efficiency Standard Offer Program from Oncor

The Home Energy Efficiency Standard Offer Program (HEE SOP) also targets homes, similar to the LIW program. However the HEE program is available for all Oncor residential customers regardless of income. If you live in a rented property and the landlord approves the program upgrades, you are also eligible.

The 2024 Home Energy Efficiency Program (HEE) opened for applications on January 29. In this case, Oncor has a budget of $500,000 for weatherization measures and $7,474,170 for HVAC, and additional funds may be approved based on program participation.

Weatherization incentives are calculated per square foot and based on the type of heating system (similar to the LIW program but with lower rates):

Type of Heating System	HEE Incentive per Sq. Ft.	Incentive for 1,500 Sq. Ft.
Electric resistance heater	$0.30 / sq.ft.	$450
Electric heat pump	$0.26 / sq.ft.	$390
Gas-fired heater	$0.20 / sq.ft	$300

The approved materials for insulation are the same as the LIW program, subject to the same technical requirements (see previous section). 

HVAC incentives are also available in the Home Energy Efficiency Program, subject to the following energy efficiency requirements (same as the Low-Income Program):

Type of HVAC System	Energy Efficiency Requirements
Air conditioner, split type, nameplate capacity below 45,000 BTU/h	Minimum SEER2 = 14.3 Minimum EER2 = 11.7
Air conditioner, split type, nameplate capacity of 45,000 BTU/h or higher	Minimum SEER2 = 13.8 Minimum EER2 = 11.2
Air conditioner, single package	Minimum SEER2 = 13.4 Minimum EER2 = 10.9
Heat pump, split type	Minimum SEER2 = 14.3 Minimum EER2 = 11.7 Minimum HSPF2 = 7.5
Heat pump, single package	Minimum SEER2 = 13.4 Minimum EER2 = 10.9 Minimum HSPF2 = 6.7

The incentive limits for HVAC upgrades in the Home Energy Efficiency program are also slightly lower than in the Low-Income Program:

HVAC System Capacity (tons)	Maximum Incentive ($)
2 tons	$2,000
2.5 tons	$2,200
3 tons	$2,600
3.5 tons	$2,900
4 tons	$3,200
5 tons	$3,400

*The requirement of installing a US DOE listed smart thermostat also applies here.

Oncor provided HVAC incentives for 1,064 projects in 2023, equivalent to $9,036,029. The HVAC subprograms achieved 29,149,143 kWh in energy savings and 15,130 kW in demand savings.

Oncor’s 2024 Home Energy Efficiency Program closes on December 1.

Oncor’s Solar Photovoltaic Residential Program

Oncor homeowners who plan to install solar panels can reduce their costs with the Solar Photovoltaic Standard Offer Program (SPVSOP) , increasing the return on investment. If the solar power system meets the following requirements, it is eligible:

• Generation capacity between 3 kW DC and 15 kW DC.
• The installation must be completely new. The incentive is not available for homeowners who are already using solar panels.
• Azimuth angle between 67.5° and 292.5°
• Residential solar PV systems must now include energy storage. This requirement was introduced in the 2022 version of the program and it has remained in effect since then.

The maximum incentive amount is $9,000. Unlike the HEE program, which is available for renters, the solar PV program only applies for Oncor customers who own the home where they live.

• This benefit can be combined with the Solar Investment Tax Credit (ITC), which was increased to 30% and extended for 10 years by the Inflation Reduction Act (August 2022).
• The 30% ITC also applies for battery systems, stand-alone or coupled with solar panels.
• The ITC is a federal incentive, available nationwide.

Home solar installations in the US currently have an average price of $3,300 per kW, which means that an 8-kW system costs around $26,400. A home battery can add around $12,000 to your project budget, reaching $38,400.

• If a system of this size gets the full incentive of $9,000, the net cost is decreased to $29,400.
• The 30% federal tax credit is equivalent to $8,820, which leads to a final cost of $20,580.

The average electricity cost in Dallas-Fort Worth is 17.5 cents/kWh. An 8-kW solar energy system can yield over 12,400 kWh/year, saving around $2,170. Considering a net cost of $20,580, the payback period is around 9.5 years. However, high-quality solar panels can last for more than 25 years – much longer than their typical payback period in Texas.

In 2023, the Oncor Solar Program provided $3,467,414 in residential incentives. The program completed 278 projects with an average size of 11 kW.

Oncor’s 2024 Solar Incentive Program closes on November 30.

Oncor Retail Products Program

If you’re an Oncor customer, this program offers point-of-sale discounts for LED light bulbs and home appliances with the ENERGY STAR label.

• Discount coupons are available for both online and in-store purchases.
• Oncor has partnered with major retailers like Home Depot, Lowe’s and Best Buy.
• You can select your city in the Oncor Retail Products Program website, and it will show a list of participating stores in your area.

This incentive program is available for both homeowners and renters, as long as they are Oncor customers. If you’re a renter, the only extra requirement is getting approval from the landlord.

The Oncor Retail Products Program includes discount coupons up to $65 for smart thermostats, which help you save on air conditioning. There are several models available from leading brands like Amazon, ecobee, Emerson Sensi, Google Nest and Honeywell.

In the case of LED bulbs, the discounts available vary depending on the specific product you pick. Eligible light bulbs have Oncor program signage on their packaging, which makes them easy to identify.