The Tennessee Valley Authority (TVA) Partner Utilities offers an Energy Right Heat Pump Loan Program, which provides loans to homeowners who install air-source, dual-fuel or geothermal heat pumps.

These low-interested loans have fixed rates with terms up to 10 years. They are distributed through local utilities, and the exact rates will vary by utility. Your payment plan can be added to your electric bill.

Heat pumps are also eligible for the federal Residential Energy Efficiency Tax Credit, which will cover up to 30 percent of your system and installation costs for up to $1,500.

If you’re in need of a water heater replacement as well, TVA provides $50 rebates to homeowners who install high-efficiency water heating systems through the Energy Right Water Heater Rebate Program.