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Rebate · CPUC / TECH Initiative · California

TECH Clean California Heat Pump Incentive

$1,000–$3,000 for heat pump space heating; $1,000–$2,500 for HPWH

TECH Clean California is the statewide heat pump incentive program managed by the Technology Energy Clean Home Initiative under CPUC oversight. The program pays $1,000 to $3,000 per qualifying heat pump space-heating installation and $1,000 to $2,500 per heat pump water heater. Funding flows through participating contractors who apply the rebate as a point-of-sale price reduction at install. TECH partners with PG&E, SCE, SDG&E, and SCG service territories and is the primary funded vehicle for accelerating cold-climate heat pump adoption in California's coastal and Central Valley regions where natural gas displacement has the largest decarbonization impact.

Eligibility

Who qualifies?

Single-family or multifamily residential customers of PG&E, SCE, SDG&E, or SCG. No income limit on base TECH incentive.

Equipment requirement?

Heat pump must be on the TECH-approved equipment list, contractor must be enrolled, and equipment must meet minimum efficiency standards (CEE Tier 2+ for ASHP).

Existing system replacement vs. new install?

Both qualify. Replacement of an existing fossil-fuel system (gas furnace, propane, oil, electric resistance) typically receives the higher tier. New construction qualifies at the base tier.

How to apply for TECH Clean California

  1. Find TECH-enrolled contractor

    Use the TECH contractor directory at techcleanca.com. Filter by zip code and equipment type.

  2. Get a contractor quote

    Contractor will identify TECH-eligible equipment and apply the rebate as a price reduction in the quote. Verify the rebate amount appears as a line-item discount.

  3. Confirm reservation

    Contractor reserves the rebate against the current TECH allocation block. Reservation expires after install.

  4. Complete installation

    Standard heat pump install — typically 1–3 days for ASHP, 1 day for HPWH. Permit and inspection per local jurisdiction.

  5. Discount applied at invoice

    TECH rebate appears as line-item discount on the contractor invoice. No homeowner paperwork beyond signing the disclosure form acknowledging TECH funding.

Stacking with other programs

Stacks with federal 25C ($2,000 sub-cap), HEEHRA (income-qualified, do not double-claim same item), utility heat pump rebates (PG&E $1,000, SCE $1,200, SoCalGas $1,000), and BayREN Home+ ($1,000–$5,000). The full California stack on a $14,000 ASHP install can deliver $4,000–$8,000+ in incentives.

Frequently asked questions

TECH vs HEEHRA — which goes first? +
TECH is for all California residents (no income cap). HEEHRA is for income-qualified (≤150% AMI) and pays much more (up to $8,000 for heat pump). Choose HEEHRA if eligible. TECH stacks with HEEHRA in some cases — confirm with contractor.
TECH vs utility-specific rebate? +
PG&E, SCE, and SDG&E run their own heat pump rebates ($300–$1,500 typical) that often stack with TECH. Bay Area BayREN Home+ also stacks (additional $1,000–$5,000).
Does TECH apply to dual-fuel hybrid systems? +
Yes — but at the lower partial-displacement tier. Whole-home full-electric installs receive the higher tier.
How do I find an HVAC company enrolled in TECH? +
Search the contractor directory at techcleanca.com or ask any major California HVAC contractor — most are enrolled.
Are induction stoves covered? +
No — TECH is heat pump-specific (space heat + water heat). HEEHRA covers induction at $840 for income-qualified.

Official program page: https://techcleanca.com/

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