How to Get Money Back for Insulation Upgrades in 2026 (Tax Credits & Rebates)
5/8/2026
Upgrading your home to spray foam insulation is one of the smartest financial decisions a homeowner in Schertz can make. Between the immediate comfort upgrades and the massive drop in monthly utility bills, the investment pays for itself over time.
But what if you could get some of that money back right away?
Navigating government tax codes and utility company rebates can be an absolute headache. To make it easy, weāve broken down exactly what financial incentives are available in 2026 for homeowners in Schertz, Cibolo, and San Antonio who want to upgrade their insulation.
Here is what you need to know about getting money back this year.
The Federal Status in 2026: What Changed?
If you were researching insulation upgrades last year, you likely read a lot about the Inflation Reduction Act (Section 25C), which offered a fantastic 30% federal tax credit for energy-efficient home improvements, including spray foam.
Here is the blunt truth for 2026: That specific federal tax credit expired at the end of 2025. If your spray foam project is installed in 2026, you generally cannot claim the 30% federal credit on next year's taxes.
(Note: If you had your insulation installed and placed into service by December 31, 2025, you are still eligible to claim the credit when you file your 2025 tax return this year. Always consult your CPA for your specific tax situation!)
While it's a bummer that the massive federal credit has sunsetted, do not let that stop you. The real money to be made is in local utility rebates and the actual month-to-month savings on your energy bill.
CPS Energy Rebates: Free Money for Energy Efficiency
If you are a CPS Energy customer living in the greater San Antonio or Schertz area, you are in luck. CPS Energy strongly incentivizes homeowners to take the load off the Texas power grid by upgrading their homeās efficiency.
Through the CPS Energy Residential Home Energy Rebate Program, you can get actual cash back for upgrading your attic insulation.
How the CPS Energy Attic Insulation Rebate Works:
- The Payout: In 2026, CPS Energy typically offers rebates ranging from $0.25 to $0.35 per square foot of attic insulation installed, provided the project meets their specific R-value upgrades.
- The Requirements: To qualify, the new insulation must be installed over conditioned (air-conditioned) living spaces, and you must use an approved contractor or follow their strict self-install documentation guidelines.
- The Process: Once Schertz Spray Foam Insulation finishes your project, you will need to submit your final invoice, along with before-and-after photos proving the installation depth, to the CPS Energy rebate portal.
For a standard 2,000 sq ft home, a $0.35 per sq ft rebate equates to $700 cash back straight from your utility company.
The Casa Verde Weatherization Program
If you meet certain income guidelines, you might qualify for massive assistance. CPS Energyās Casa Verde Weatherization Program helps income-eligible homeowners and renters make energy-saving upgradesāincluding attic and wall insulation and air sealingāat little to absolutely no cost.
If your household qualifies based on total income or energy burden metrics, this program can cover the vast majority of the costs associated with sealing up your home against the brutal South Texas heat. You can apply directly through the CPS Energy website.
The Biggest Payback: Your Monthly Bill
Rebates are fantastic, but they are a one-time bonus. The real financial return of spray foam insulation happens every single month when your electric bill arrives.
By completely air-sealing your attic with open-cell spray foam, you drop the thermal load on your HVAC system drastically. Most of our customers see a 30% to 40% reduction in their summer energy bills. If you are paying $400 a month to cool your house in July and August, shaving $150 off that bill every single month adds up incredibly fast.
Furthermore, because your AC unit isn't running 20 hours a day, it extends the lifespan of your HVAC equipment, delaying a $10,000 AC replacement by several years.
Ready to Start Saving?
Don't wait until August to realize your home is bleeding money. If you want to take advantage of local CPS Energy rebates and permanently lower your utility bills, give Schertz Spray Foam Insulation a call today. Weāll provide a transparent quote and walk you through exactly what documentation you need to claim your rebates!