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Money & Rebates

California heat pump rebates: what's still open in fall 2026

TECH Clean California and HEEHRA single-family rebates are fully reserved and the federal credit ended. Local utility programs like SMUD's remain.

By Written with AIUpdated Sunday, October 42 min read

If a heat pump quote assumes thousands in state rebates or a federal tax credit, check it again. As of October 4, 2026, the biggest statewide programs for single-family homes are fully reserved, and the federal credit has ended. Some local money is still available.

TECH Clean California. Its single-family page says statewide heat pump water heater and HVAC incentives were reserved on November 14, 2025. Applicants whose reservations were not approved were placed on a waitlist, and installation has to happen after a reservation is approved to qualify.

HEEHRA rebates. These federally funded rebates, managed by the California Energy Commission and run through TECH, offered single-family homes up to $8,000 for a heat pump below 80% of area median income and up to $4,000 between 80% and 150%. TECH says single-family HEEHRA rebates were fully reserved statewide on February 24, 2026, and it stopped accepting new income verification applications.

Federal tax credit. The IRS says the Energy Efficient Home Improvement Credit (section 25C) is not allowed for property placed in service after December 31, 2025. For your own taxes, ask a tax professional.

SMUD. In February 2026, SMUD raised its rebates. For its customers, a gas-to-electric heat pump water heater can get up to $4,000, a gas-to-electric heat pump HVAC system up to $3,000, and an electric-to-electric heat pump upgrade $1,000. SMUD's rebate page lists $3,000 for variable-stage and $2,000 for two-stage systems, requires a SMUD Contractor Network installer, a rating of at least 15.2 SEER2 (a cooling efficiency score) and a connected thermostat.

San Fernando Valley. TECH lists incentives for priority ZIP codes affected by the Aliso Canyon gas storage facility, announced to begin in late summer 2026, with income-qualified incentives that may cover full installation costs. Check the page for current status.

Elsewhere, local programs vary by city, utility and community choice provider. BayREN's directory, for example, lists $1,200 in bill credits in San Francisco for switching to an efficient water heater.

Step 1: Search your address on The Switch Is On incentive finder, which TECH points to.

Step 2: Read each program's page for status, amount and installer rules.

Today's next step: ask your contractor which rebates are in the quote and whether each one is reserved.

Sources

Facts were checked against these sources when the post was written. Details can change, so check them for the latest.

rebatesheat pumpscaliforniasmudtech clean california

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Tineessa Nelson

Tineessa Nelson runs EveryHour. The posts are written with AI, using topics researched each day, and she is responsible for what the site publishes. She is based in California.