California Heat Pump Rebates 2026: Current Programs by Utility

Current status: check the utility before choosing equipment

Checked August 12, 2026. California does not have one open, statewide heat pump rebate that every household can claim. The state HEEHRA program is between phases, TECH Clean funding varies by program and region, and the clearest current homeowner offers come from individual utilities such as SMUD and LADWP.

The federal Section 25C heat pump tax credit ended for property placed in service after December 31, 2025. Do not add it to a 2026 project even if a utility page or contractor handout still mentions the former $2,000 credit.

California HEEHRA

California’s HEEHRA program offers up to $8,000 for an eligible heat pump HVAC project for a household below 80% of area median income and up to $4,000 for an eligible household from 80% to 150% AMI. Those are statutory ceilings, not a statement that reservations are currently open.

The California Energy Commission says Phase I is processing projects that already have approved reservations and that Phase II availability will be announced later. Do not install on the assumption that a future phase will reimburse the project. An approved reservation through a trained participating contractor is required.

Beginning January 1, 2026, eligible residential and light-commercial air conditioners and heat pumps must use refrigerant with a global warming potential of 700 or lower under the program rules. Verify the exact matched system and refrigerant before reservation. An older R-410A model may still be sold but may not satisfy a 2026 rebate equipment rule.

SMUD

SMUD announced these increased residential offers in February 2026:

Use SMUD’s current Go Electric requirements and contractor process. The maximum depends on the project and qualifying equipment; it is not earned by any heat pump purchase in SMUD territory.

LADWP

LADWP currently publishes up to $2,500 per ton for a qualifying heat pump HVAC system. The amount is based on the system’s efficiency tier. Its listed documentation includes a paid itemized invoice, matching AHRI certificate, and final approved building permit.

LADWP says funding is limited and the offer can change or end. Save the applicable program document before purchase. Ignore any stale reference on the utility page to a 2026 federal 25C credit; the IRS is controlling for federal tax eligibility and says the credit ended after 2025.

Other utility territories

PG&E, SCE, SDG&E, municipal utilities, community-choice programs, and air districts can have different offers and contractor rules. Search by the electric utility shown on the bill and the property’s air district. Do not assume an SMUD or LADWP amount applies elsewhere.

A safe application order

1. Identify the electric utility and gas utility, if different.
2. Check the current utility, TECH Clean, HEEHRA, and air-district pages for the address.
3. Complete income verification before relying on an income-based amount.
4. Select a participating contractor before choosing equipment when the program requires one.
5. Reserve funds and receive written approval where required.
6. Match the exact AHRI system, refrigerant, efficiency tier, and permit requirements.
7. Install only within the approval window, then retain commissioning and final-permit records.

Do not budget a future reopening

HEEHRA Phase II and future TECH Clean funding may become available, but neither should appear in the committed column of a project budget until the program accepts and approves a reservation. There is no basis for saying a reopening is inevitable or predicting which income tier will reopen first.

Before you apply

• Save the official offer and funding status on the day the contractor prepares the bid.
• Require the proposal to identify each incentive and who submits it.
• Verify the exact AHRI match and low-GWP refrigerant requirement.
• Confirm permits and contractor enrollment before installation.
• Get written stacking confirmation when combining a utility, state, air-district, or income-based program.

What changed in this update

The August 12 review removes the prediction that HEEHRA or TECH Clean will reopen, adds the CEC’s Phase II and low-GWP status, adds current SMUD and LADWP offers, and removes product recommendations that were unrelated to program eligibility.

Related guides

• Estimate the room or project load
• DIY mini-split installation and federal refrigerant rules
• Federal heat pump incentives in 2026