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Rebates

Outdated HVAC systems frequently lack efficiency; upgrading them can reduce energy costs and enhance the comfort of your home. Whether your system has broken down, requires costly repairs, or you simply intend to replace it, rebates can offer significant savings. Receive instant discounts on installation costs, reducing your immediate out-of-pocket expense. 

Some rebate discounts are based on income, see the chart below for rebate amounts based on area-median income levels.

Low Income

Californians whose single-family household incomes are below 80% of the area's median income qualify for up to $8,000. Rebate amount is based on system type, see comparison table below for more details.

$13,500

In rebates and tax credits available. Discount applied as a time-of-service discount. *Terms and conditions apply.

See If You Qualify
  • $2,000 tax credit
  • $1,500 TECH Clean CA
  • $2,000 SMUD
  • $8,000 HEERA
  • Additional rebates may be available

Medium to Lower Income

California residents whose single-family household incomes range from 80 percent to 150 percent of the area median income (AMI) qualify for a rebate of up to $4,000. Fill in the income qualification form below to see if you pre-qualify.

$9,500

In rebates and tax credits available. Discount applied as a time-of-service discount. *Terms and conditions apply.

See If You Qualify
  • $2,000 tax credit
  • $1,500 TECH Clean CA
  • $2,000 SMUD
  • $4,000 HEERA
  • Additional rebates may be available

Above Medium Income

Households earning more than 150% of the area median income (AMI) do not qualify for income-based rebates. However, these households can still benefit from other substantial rebate and tax credit programs. Learn more about systems that qualify below.

$5,500

In rebates and tax credits available. Discount applied as a time-of-service discount. *Terms and conditions apply.

Schedule FREE In-Home Assessment
  • $2,000 tax credit
  • $1,500 TECH Clean CA
  • $2,000 SMUD

  • Additional rebates may be available

*Rental locations may qualify for income-based rebates if the tenant occupant qualifies.

Single Family Heat Pump HVAC Rebates Available By Program

The table below outlines the rebates offered depending on the fulfillment of location pre-existing conditions and area median income criteria. Qualification is also based on if a system is variable inverter tech or a two stage heat pump. Every location is different, fill out our rebate verification form to learn more.
Type Requirements Heat Pump HVAC
TECH Clean CA
Gas-To-Electric Conversion
Energy-Star, Furnace Remains
$1,000
TECH Clean CA
Gas-To-Electric Conversion
Energy-Star, Gas Capped
$1,500
HEERA/HEAR
Gas-To-Electric Conversion
 -Low Income
-Energy-Star, Furnace Remains or Gas Capped
$8,000
HEERA/HEAR
Gas-To-Electric Conversion
-Medium to Lower Income
-Energy-Star, Furnace Remains or Gas Capped
$4,000
SMUD
Gas-To-Electric Conversion
Energy-Star, Variable, Gas Capped
$2,000
SMUD
Gas-To-Electric Conversion
15.2 SEER2+, Two Stage Split
$1,000
SMUD
Gas-To-Electric Conversion
15.2 SEER2+, Two Stage Package
$1,000
SMUD
Electric Upgrade
Energy-Star, Variable
$500
SMUD
Electric Upgrade
15.2 SEER2+, Two Stage Split
$500
SMUD
Electric Upgrade
15.2 SEER2+, Two Stage Package
$500
Federal Tax Credit
Gas-To-Electric Conversion
Energy-Star, Gas Capped
$2,000

Frequently Ask Questions

Each residence has different requirements. Here are some frequently asked questions as you explore rebate options.
How do you qualify for heat pump HVAC rebate incentives?

HEERHA Program is a point of sale rebate, you can receive the rebate at the time of purchase when you buy a qualifying electric unit product from a participating vendor.

Installing contractors must be fully licensed and a program participant in TECH and/or HEERA programs.

Who qualifies for the different heat pump HVAC rebates?
LMI households based on area median income. Fill out our quick form and we will email you an income qualification cheat sheet to see if you qualify.
What are the different programs that offer rebates?
Programs are available depending on where you live. Programs in northern CA include - TECH Clean CA, SMUD Home Performance Program, City of Roseville, City of Lodi, Federal HEERA rebates and Federal Tax Credits.
What are the different rebates based on income?
  • Tech Clean CA
    • State-funded program all income levels qualify, see program rules above.
  • HEERHA
    • HEERHA is focused on low to moderate income households (LMI). Those who earn under 80% of the median income of the area/neighborhood can receive rebates that cover 100% of the project cost $8,000 dollars per unit. 
  • SMUD
    • Rate-payer funded all income levels qualify, see program rules above.
What is the rebate program's purpose and function?
  • Help utilities cut costs and require customers to upgrade to high-efficiency heat pump systems as well as enroll in demand response programs in order to save money. Cost savings are significant for consumers.
  • Give opportunities for medium to low income families a chance to make energy improvements on their homes.
  • Create more options and outlets for equity. 
  • Encourages households to replace their older, power hungry systems/units with new energy efficient ones
  • Lower energy emissions and help improve air quality.
What is a time-of-use program and am I required to enroll in it to get a rebate?

A pricing structure where the cost of electricity varies depending on the time of day, season, and overall demand on the grid. Encourages customers to shift energy usage to off peak hours when demand is lower and electricity is cheaper. Helps utilities manage load and integrate renewable energy sources.

Am I required to enroll in a time-of-use program to get a heat pump HVAC rebate?

Only heat pump water heater installations that qualify for state-funded TECH Clean CA require proof of enrollment in a time-of-use program.

What is a demand response program?

This technology automatically scales back your energy use when demand for electricity is at its peak.

Will I be required to enroll in a demand response program to get a heat pump rebate?

Some programs require it, others do not. It depends on various factors based on income and rebates you qualify for.

What needs to happen before and after the unit is replaced?
  1. Income Qualification
  2. Home Assessment
    1. Selection of Energy-Star Qualified Equipment
    2. Load Calculation (Manual J)
    3. Permitting and Code Compliance Review
    4. Recommendations for Customers
    5. Contract
  3. Claim Reservation
    1. TECH/HEERA Customer Terms & Conditions Contract (Required)
    2. Demand Response Enrollment (If Applicable)
    3. Time-of-Use Enrollment (If Applicable)
  4. Home Energy Inspection
    1. Electrical Panel and Wiring Inspection
    2. Geo-Tagging Pre-Existing Equipment
    3. Quality Install Intake (If Applicable)
    4. Safety Assessment
    5. Mold Assessment
  5. Combustion Appliance Safety Test-In (If Applicable)
  6. Pull Permit
  7. Installation Completion
  8. HERs Title 24 Test-Out
  9. Permit Closure
  10. Project Closure
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