California Heat Pump Rebates

What's available in California

California has the most complex incentive stack in the country, but several of its largest programs closed in 2025-early 2026. TECH Clean California's statewide single-family incentives are fully reserved and no Phase II has launched (a San Fernando Valley-only TECH campaign for Aliso Canyon communities begins late summer 2026, amounts not yet published); the IRA-funded CA HEEHRA single-family rebates were fully reserved statewide on February 24, 2026 (waitlist only); BayREN Home+ HVAC funding is exhausted; and SCE's heat pump incentive ran through the now-closed TECH program. The programs still open in September 2026 are SMUD Go Electric ($3,000, Sacramento), LADWP's per-ton rebate (Los Angeles), SVCE FutureFit Homes ($2,500, Silicon Valley), and MCE's reduced heat pump rebates ($400 per 500 sq ft, roughly $1,200; Marin, Napa, and parts of Contra Costa, Alameda, Solano and Kern). South Coast AQMD's GO ZERO single-family funding is fully depleted and closed to new applications. Confirm current funding status before committing - California programs move fast.

HEEHRA in California

HEEHRA rebate: Point-of-sale rebate up to $8,000 for households at or below 80% of area median income. Funded by the IRA, administered by each state. California HEEHRA is fully reserved as of 2026-09-07 — new applications go on a waitlist for any returned funds.

How heat pump rebates work in California

California has the deepest heat pump incentive stack in the country, but it's also the most fragmented. There is no single program a homeowner applies to. Instead, money flows through three independent layers: the statewide TECH Clean California program (administered by the California Energy Commission and paid through participating contractors), regional programs run by Community Choice Aggregators and energy-efficiency consortia like BayREN and SoCalREN, and individual investor-owned and municipal utility rebates from PG&E, SCE, SDG&E, SMUD, LADWP, and others. The same install in Sacramento, Oakland, and Pasadena qualifies for completely different rebate stacks because each layer is gated by service territory.

Important 2026 update: TECH Clean California — long the statewide foundation of the stack — stopped accepting heat pump HVAC and water heater reservations on November 14, 2025, and a Phase II has not launched. SCE's residential heat pump incentive ran through TECH and is closed with it, and BayREN Home+ HVAC funding is exhausted. So the layered 'three-to-four rebate' stack that defined California has thinned considerably. What remains open and claimable in 2026 are the utility/CCA programs that run on their own funding: SMUD Go Electric (Sacramento), LADWP's per-ton rebate (Los Angeles), SVCE FutureFit Homes (Silicon Valley), and MCE's heat pump rebates (Marin, Napa, and parts of the East Bay). The California-specific catch still holds — two electric utility rebates almost never stack, since your home is in exactly one electric service territory.

California's HEEHRA program (the federal IRA-funded income-qualified rebate, branded as the Home Electrification and Appliance Rebate program) launched statewide in 2025 with an $8,000 cap for single-family households at or below 80% of area median income. As of February 2026, single-family rebates are fully reserved statewide and the CEC is no longer accepting new income-verification applications — submitted reservations sit on a waitlist for any returned funds. Multifamily HEEHRA in California remains active. If you're a low-income California homeowner, the practical 2026 stack is now mainly your open utility or CCA rebate (SMUD, LADWP, SVCE), since TECH is closed to new reservations and single-family HEEHRA is on hold until funding returns.

California rebate programs

15 utility-specific programs not shown here. Enter your ZIP in the calculator to filter to just your utility.

A worked example: replacing a Sacramento gas furnace

Sarah owns a 1,750 sq ft single-family home in Sacramento. Her 22-year-old 80%-AFUE gas furnace is on its last legs and her central AC is the same age. She gets three contractor quotes for a 4-ton ducted variable-speed air-source heat pump (Carrier Greenspeed, HSPF2 9.0, SEER2 17.5) with a new air handler. Quoted prices range from $14,800 to $18,500; she picks a SMUD-registered contractor at $16,400 installed.

Because Sarah is a SMUD electric customer, she's eligible for SMUD's Go Electric program — up to $3,000 for a gas-to-electric heat pump HVAC conversion at the February 2026 incentive levels, processed by her contractor as an instant invoice discount. In prior years she could have stacked the statewide TECH Clean California incentive ($2,500–$3,500 for her tier) on top, but TECH stopped accepting reservations on November 14, 2025, so that layer is no longer available in 2026 — the SMUD rebate is now the bulk of her stack.

Her household income is roughly 110% of Sacramento's area median — above the 80% AMI threshold for HEEHRA, so the federal income-qualified track doesn't apply (and CA HEEHRA is fully reserved/waitlisted statewide anyway). The federal §25C residential heat pump tax credit was repealed effective December 31, 2025, so she can't claim that on her 2026 return either. The §25D 30% geothermal credit was also repealed effective December 31, 2025, so no federal tax credit applies to her air-source install. Net of the SMUD rebate, her out-of-pocket lands near $13,400.

If Sarah lived in Berkeley instead of Sacramento, her stack would be even thinner in 2026: PG&E has no current ASHP rebate, BayREN Home+ HVAC funding is exhausted, and TECH is closed — leaving little beyond any seasonal CCA promotion. The structural lesson still holds — which California utility serves your address determines the bulk of your rebate — but the once-reliable statewide TECH layer is gone until a Phase II launches.

Choosing a contractor in California

California's utility rebates require contractors registered with the specific program. (TECH Clean California, historically the must-ask registration, stopped taking reservations on November 14, 2025, so it's no longer the gating question it once was — but watch for a Phase II relaunch.) Before signing any contract for $10,000+ work, ask which currently-open programs your installer is registered for and whether each will show up as a discount on your invoice. If the answer is vague, get another quote.

Utility rebates have similar gating. SMUD's Go Electric requires a SMUD-registered contractor who handles the rebate as an instant discount. LADWP's Consumer Rebate Program lets the homeowner submit directly, but you must use the program's online portal within 12 months of purchase and provide the AHRI matching certificate, final building permit, and final paid invoice. SCE's program is contractor-filed. BayREN Home+ requires a BayREN-registered contractor for the heat pump measure.

Two practical filters when you're vetting contractors in California: confirm CSLB licensing (C-20 HVAC for furnace/AC work), and confirm permit-pulling. California requires a building permit for HVAC replacements in most jurisdictions, and several rebates (LADWP and SMUD especially) require the permit final-card before processing the rebate. A contractor who tries to skip the permit to save you a few hundred dollars is also disqualifying you from rebates worth thousands.

Common pitfalls for California homeowners

• Assuming HEEHRA is still open for low-income households. California HEEHRA single-family went to waitlist on February 24, 2026. Many older blog posts and contractor materials still cite the $8,000 figure as currently available. Confirm directly at the CEC's IRA Residential Energy Rebate Programs page before factoring HEEHRA into your budget. Multifamily HEEHRA remains active.
• Stacking two utility rebates. Your home is in exactly one electric utility territory, so SMUD, LADWP, SCE, PG&E, SDG&E, and Bay Area munis are mutually exclusive in practice. Aggregator sites that show 'up to $X across all utility programs' are summing rebates you can't actually combine. Pick the one your meter is on.
• Skipping the AHRI matching certificate. California utility rebates and TECH both require an AHRI-matched system — the indoor and outdoor units must be on a single AHRI certificate that documents the system's combined SEER2 and HSPF2 performance. A contractor who quotes 'matched' equipment but can't produce the AHRI number is a red flag; without it, the rebate gets denied at processing.
• Counting on §25C in 2026. The federal residential energy property credit (§25C) covered up to $2,000 for heat pumps in 2025 but was repealed effective December 31, 2025 by the One Big Beautiful Bill Act. California installs completed in 2026 cannot claim it. The §25D residential clean energy credit (30%, geothermal) was also repealed effective December 31, 2025, so no federal tax credit applies to 2026 installs.
• Ignoring permit timing. California building departments increasingly require electrification permits to include load calculations and panel ratings. If your panel is 100A or under and the heat pump pushes you over capacity, the permit final can stall for weeks while you do a panel upgrade. Ask your contractor for a Manual J load calc and a panel-capacity assessment before the install date — not after.

Estimate your net cost

How to claim each rebate

1. Get pre-approved (where required). Some utility programs require approval before install. Check program details before signing a contract.
2. Use a participating contractor. Many programs require a licensed installer from an approved contractor list — especially HEEHRA, which routes through CEC-approved contractors who process the rebate at point of sale.
3. Save documentation. AHRI certificate, model numbers, and itemized invoice are required for most utility rebates.
4. Submit utility rebate within 60–90 days of install. Some programs are first-come first-served and close mid-year — funding can run out before the calendar year does.

If you can't afford a replacement in California

Rebates lower the price, but they still assume you can pay the rest. If your heating system is unsafe or has failed and a new one is out of reach, these programs repair or replace equipment at low or no cost for income-qualified households. Heat Pump Pricing Index is an independent information site — we don't fund, discount, or install equipment — so these are the doors to knock on first:

• Weatherization Assistance Program (WAP). Free energy and health-and-safety repairs — an unsafe furnace is exactly the kind of problem it fixes — for households at or near 200% of the poverty line. Apply through your local community action agency: how to apply (energy.gov).
• LIHEAP. Heating-bill help plus, in most states, a crisis component for broken or dangerous heating equipment. Same local agency; California LIHEAP contacts.
• USDA Section 504 Home Repair. For homeowners outside cities: 1% loans up to $40,000, and grants up to $10,000 for homeowners 62 and older to remove health and safety hazards. Program page and state offices (rd.usda.gov).
• Your utility and 211. Most electric and gas utilities run an income-qualified assistance fund — call the number on your bill and ask. Dialing 211 reaches a local specialist who knows which agencies in California currently have funds.

Safety first: if a technician has told you a heat exchanger is cracked, stop using the furnace and make sure you have a working carbon monoxide detector before anything else.

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