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California Heat Pump Rebates
Current status and program details for heat pump incentives in California.
California
Limited / Region-Dependent
California heat pump rebates are currently limited and vary by region. Some state and utility-run programs remain active, but funding caps, pauses, or waitlists apply in many areas. Federal tax credits (25C/25D) are not available in 2026. Availability depends on where you live and which utility serves your home.
California Heat Pump Programs
California has multiple overlapping incentive programs for heat pumps. Availability and funding levels vary significantly by region.
Federal tax credits (not available in 2026)
Federal residential heat pump tax credits (Section 25C) and geothermal credits (Section 25D) ended for property placed in service after December 31, 2025. In 2026, California homeowners should plan around state, utility, and IRA-funded rebate programs instead of federal tax credits. See our federal credits explainer.
State-Level Programs
- TECH Clean California: Incentives for heat pump water heaters and space heating in homes with gas appliances
- Self-Generation Incentive Program (SGIP): Primarily battery storage incentives (often relevant if you pair a heat pump with backup power)
- IRA Home Energy Rebates (HEAR/HOMES): Federal funds administered through California as point-of-sale or performance-based rebates (status and rollout may vary)
Utility Programs
Major California utilities offer their own rebates that can often be stacked with state programs:
- PG&E: Heat pump rebates for space and water heating
- SCE: Southern California Edison electrification incentives
- SDG&E: San Diego Gas & Electric rebate programs
- Municipal utilities: SMUD, LADWP, and others have separate programs
Why "Limited"?
California's status is marked "Limited / Region-Dependent" because:
- Funding caps have been reached in some programs
- Certain utility territories have waitlists
- Program availability varies by income level and location
- Some programs have paused enrollment while processing applications
Always confirm current availability directly with your utility and the relevant program portal before starting a project.
What to Do
- Check your specific utility's current rebate availability
- Verify your eligibility for income-qualified programs
- Get quotes from multiple contractors who are familiar with program requirements
- Apply for rebates early—many programs are first-come, first-served
Official Sources
TECH Clean California ↗
https://techcleancalifornia.com/
IRS Energy Credits (expired) ↗
https://www.irs.gov/credits-deductions/energy-efficient-home-improvement-credit
CPUC Self-Generation Incentive Program ↗
https://www.cpuc.ca.gov/industries-and-topics/electrical-energy/demand-side-management/self-generation-incentive-program
Last verified: February 18, 2026