Heat Pump Rebates in California (2026)

California runs the TECH Clean California program — a statewide $1,000 to $3,000 incentive for residential heat pump space heating and water heating, focused on accelerating cold-climate ASHP adoption in coastal and inland markets. The federal 25C credit (30% up to $2,000) and IRA HEEHRA rebates (up to $8,000 income-qualified) stack on top. PG&E, SCE, SDG&E, and SCG each operate utility-specific heat pump rebates that typically add $500 to $2,000. California Title 24 building code increasingly favors heat pumps in new construction and major retrofits.

California heat pump programs available

Program	Amount	Type	Authority	Deadline
TECH Clean California Heat Pump Space Heating	$1,000–$3,000	Rebate	TECH (CPUC)	Ongoing
TECH Clean California HPWH	$1,000–$2,500	Rebate	TECH (CPUC)	Ongoing
PG&E Heat Pump Rebate	$1,000	Rebate	PG&E	Ongoing
SCE Heat Pump Rebate	$1,200	Rebate	SCE	Ongoing
SoCalGas Heat Pump Water Heater	$1,000	Rebate	SoCalGas	Ongoing
Federal 25C	30% up to $2,000	Tax credit	IRS	Ongoing
HEEHRA	Up to $8,000 income-qualified	Rebate	CA Energy Commission	Ongoing
BayREN Home+ Rebate	Up to $5,000	Rebate	BayREN (9 Bay Area counties)	Ongoing

Eligibility quick check

TECH Clean California eligibility?

Single-family or multifamily residential. Equipment must be on the TECH-approved product list with installer participating in the program.

Income limits?

TECH base rebate has no income cap. HEEHRA (separate) has 150% AMI cap.

How to stack with the federal credit

California programs combine with the federal 25C 25C Credit (30% up to $3,200 per year) — see the 25C guide for filing instructions and forms.

Worked stacking example

San Diego homeowner installs 3-ton heat pump at $14,000: TECH Clean California $2,000 → basis $12,000. SDG&E rebate $800 → $11,200. Federal 25C 30% = $2,000 cap. Total incentives ~$4,800 plus HEEHRA if income-qualified.

Frequently asked questions

Heat pump cost in California? +

3-ton ducted ASHP installed: $11,000–$17,000. Ductless mini-split multi-zone: $14,000–$25,000. Heat pump water heater: $4,000–$6,000.

Best Bay Area program? +

BayREN Home+ stacks with TECH Clean California in 9 Bay Area counties — additional $1,000–$5,000 depending on whole-home retrofit scope.

Is HPWH worth it? +

Federal 25C $2,000 cap covers HPWH. SCE pays $1,000. PG&E pays $300–$500. Total incentives can exceed installed cost difference vs gas — making HPWH effectively free for many households.