Spencer Municipal Utilities customers, Iowa · Rebate
SMU Resource Conservation Incentive Program (residential rebates)
Run by Spencer Municipal Utilities (SMU)
Spencer Municipal Utilities pays its electric customers rebates for attic and wall insulation (70% of cost up to $750 each, for electrically heated homes), heat pumps ($200 to $250 per ton for air source, $1,000 per ton for new geothermal), a $500 heat pump water heater rebate and a $25 yearly HVAC checkup, for work paid for or installed in 2026.
Amounts
How much you get
Residential rebates for 2026: attic/ceiling insulation to R-49+ and exterior wall insulation to R-13+ at 70% of cost up to $750 each (electric primary heat only); ductless mini-split heat pump $200 per ton; air source heat pump (SEER2 15.2 or higher, single-phase, under 65,000 Btu/h) $250 per ton; closed-loop geothermal heat pump $1,000 per ton ($500 per ton when replacing equipment); multi-stage compressor bonus $100 per ton; electric backup heat installed with a heat pump $50 per kW; ECM furnace motor $50; desuperheater with a heat pump $150; ENERGY STAR heat pump water heater $500; central AC or heat pump annual checkup $25. The amount depends on which of these fits your install.
| What you install | You get |
|---|---|
| Attic/ceiling insulation to R-49+ (70% of cost) | 70% |
| Exterior wall insulation to R-13+ (70% of cost) | 70% |
| Ductless mini-split heat pump (per ton) | $200 |
| SEER2 15.2+ (per ton)Air source heat pump | $250 |
| Closed loop (per ton)Geothermal heat pump | $1,000 |
| Geothermal heat pump replacing equipment (per ton) | $500 |
| Multi-stage compressor bonus (per ton) | $100 |
| Electric backup heat installed with a heat pump (per kW) | $50 |
| ECM furnace motor | $50 |
| Desuperheater installed with a heat pump | $150 |
| ENERGY STAR heat pump water heater | $500 |
| Central AC or heat pump annual checkup | $25 |
A residential property can receive up to $2,500 a year, but heat pump rebates do not count toward that limit.
Eligibility
Do I qualify?
You need to meet all 6 of these.
The property must be in the SMU electric service territory.
Insulation rebates are only for customers who heat mainly with electricity (resistance or heat pump), and heat pump rebates require a building heated with electricity.
For insulation, an SMU employee must verify the insulation level before and after the work.
What to doCall SMU before insulating to schedule the before-and-after insulation verification.
Heat pumps and other HVAC equipment must be installed by a licensed HVAC contractor, AHRI listed, with the AHRI certificate attached to the application.
What to doHire a licensed HVAC contractor and ask for the AHRI certificate for the installed system. Get a quote from a contractor
New equipment and improvements only; used items do not qualify.
The rebate goes to whoever paid for the improvement. Owner-occupied homes get a credit on the utility account; landlords get a credit on another SMU account in their name or a check. Rental properties count as residential but fall under the commercial annual limits.
Equipment
What equipment counts
The program sets these minimums for heat pumps and insulation and air sealing.
- Heat pumps
Residential or small commercial air source heat pump: single-phase, rated below 65,000 Btu/hr, SEER2 15.2 or higher.
- Geothermal heat pumps
Water-to-air: more than 16.1 EER and 3.5 COP; water-to-water: more than 15.1 EER and 3.0 COP (closed loop only).
- Insulation
Attic/ceiling to R-49 or more; exterior walls to R-13 or more.
Applying
How to apply
Improvements must be paid for and/or installed during 2026, and rebates must be submitted within 90 days of the invoice date or project completion. Funds are first come, first served.
- Check eligibility.
Make sure the home is in SMU electric territory and, for insulation or heat pumps, heated with electricity.
- Get pre-authorization for heat pumps or verification for insulation.
SMU pre-authorizes heat pump rebates, and an SMU employee must verify insulation levels before and after the work.
- Buy and install in 2026.
Improvements must be paid for and/or installed during 2026; HVAC equipment by a licensed contractor.
- Submit the rebate form within 90 days.
Use the online residential rebate form or the printable form, with a copy of the receipt (and the AHRI certificate for HVAC).
- Receive the rebate.
Paid as a credit on the utility account at the property, or by check in some cases (applicants can ask for a check for rebates over $1,000).
Copy of the purchase receipt or invoice
AHRI certificate (HVAC equipment)
Forms and instructionsSpencer Municipal Utilities - Energy Efficiency (2026 SMU Resource Conservation Incentive Program)
Stacking
Use it with
Your address
Next steps
Check that it covers your address. Then, if you want, ask for a contractor quote.
Is it available at your address?
Before anything else
Your quote request is in If a contractor we work with serves your ZIP, they can contact you. We take one request per person; contact us to change it.
Get an email if this program changes
We'll write if its amount, status or deadline changes. Nothing else.
FAQ
Questions
How much does SMU Resource Conservation Incentive Program (residential rebates) pay?
$25 to $1,000, depending on what you install. The table under How much you get lists each amount. A residential property can receive up to $2,500 a year, but heat pump rebates do not count toward that limit.
Do I need to be a Spencer Municipal Utilities customer?
Yes. It’s only for homes in Spencer Municipal Utilities customers, Iowa. See Do I qualify for the details.
Do renters qualify?
The rebate goes to whoever paid for the improvement. Owner-occupied homes get a credit on the utility account; landlords get a credit on another SMU account in their name or a check. Rental properties count as residential but fall under the commercial annual limits.
Do I have to use a contractor?
Yes. Heat pumps and other HVAC equipment must be installed by a licensed HVAC contractor, AHRI listed, with the AHRI certificate attached to the application.
Do I need approval before I buy?
For insulation, an SMU employee must verify the insulation level before and after the work. Call SMU before insulating to schedule the before-and-after insulation verification.
What’s the deadline?
Apply after it’s installed: within 3 months of purchase or by Dec 31, 2026, whichever comes first.
Is it still available?
Yes. It was open when we last checked, on October 28, 2026.
Plain words
Words used on this page
- SEER2 and EER2
- Cooling efficiency ratings on the model’s spec sheet. Higher is better.
References
Sources
This page is built from these official pages, run by the program itself.
When one of these pages changes, we re-check this page against it.
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Checked Oct 28, 2026
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