California Energy Rebates 2026
California leads the nation in clean energy incentives, with nearly $291 million in federal HOMES rebate funding and robust state-level programs. Between IRA rebates, utility incentives, and programs like TECH Clean California, homeowners can stack thousands of dollars in savings on heat pumps, insulation, and electrical upgrades.
HOMES Rebate Program in California
Administered by: California Energy Commission (CEC)
Federal allocation: $291 million
| Income Level | Max Rebate | Cost Coverage |
|---|---|---|
| Low income (≤80% AMI) | Up to $8,000 | 80% of project cost |
| Moderate income (80-150% AMI) | Up to $4,000 | 50% of project cost |
| Above 150% AMI | Not eligible | N/A |
California launched its HOMES program in late 2025 through the CEC. Rebates cover whole-home energy efficiency retrofits, with up to $8,000 for low-income households and up to $4,000 for moderate-income households based on modeled or measured energy savings. Contractors must be BPI-certified.
Official HOMES Program PageHEAR (HEEHRA) Rebates in California
| Equipment | Max Rebate |
|---|---|
| Heat Pump HVAC | Up to $8,000 |
| Electrical Panel | Up to $4,000 |
| Wiring Upgrade | Up to $2,500 |
| Heat Pump Water Heater | Up to $1,750 |
| Insulation & Weatherization | Up to $1,600 |
| Electric Stove/Cooktop | Up to $840 |
Maximum total: $14,000 per household (low-income, ≤80% AMI). Moderate income (80-150% AMI) can receive up to $7,000.
Official HEAR Program PageCalifornia State Incentive Programs
TECH Clean California
Statewide incentive program for heat pump HVAC and water heating systems in existing residential buildings. Offers generous incentives on top of federal rebates.
Amount: Up to $5,800 for heat pump HVAC, up to $4,885 for heat pump water heater
Learn moreSelf-Generation Incentive Program (SGIP)
Provides rebates for battery storage systems paired with solar. Equity budget offers higher incentives for low-income and medically vulnerable households.
Amount: Up to $1,000/kWh for equity-eligible, ~$200/kWh general market
Learn moreCalSHAPE (Schools Healthy Air, Plumbing, and Efficiency)
While focused on schools, this program improves HVAC and plumbing in public school buildings, indirectly benefiting communities.
Amount: Varies by project
Learn moreUtility Rebate Programs in California
Pacific Gas & Electric (PG&E)
Offers rebates up to $3,200 on heat pump water heaters and $1,500 on smart thermostats and insulation through the Energy Savings Assistance program.
Southern California Edison (SCE)
Provides rebates on qualifying heat pumps, electrical panel upgrades, and weatherization for residential customers.
Los Angeles Department of Water & Power (LADWP)
Home energy improvement rebates including up to $3,000 for central heat pumps and $500 for heat pump water heaters.
San Diego Gas & Electric (SDG&E)
Energy efficiency rebates for HVAC systems, insulation, and water heaters available to residential customers.
Area Median Income (AMI) in California
HOMES and HEAR rebate amounts depend on your household income relative to the Area Median Income in your area. AMI varies by county and household size.
| Area | 80% AMI (Family of 4) | 150% AMI (Family of 4) |
|---|---|---|
| Los Angeles-Long Beach-Anaheim | $76,100 | $142,700 |
| San Francisco-Oakland-Berkeley | $102,450 | $192,100 |
| Sacramento-Roseville-Folsom | $71,500 | $134,050 |
Frequently Asked Questions
What energy rebates are available in California in 2026?
California offers a strong combination of federal IRA rebates (HOMES up to $8,000 and HEAR point-of-sale rebates), the TECH Clean California program (up to $5,800 for heat pumps), SGIP battery storage incentives, plus utility-specific rebates from PG&E, SCE, LADWP, and SDG&E. Many of these can be stacked for maximum savings.
How much can I get from the HOMES program in California?
Under the HOMES program in California, low-income households (under 80% AMI) can receive up to $8,000 for whole-home energy retrofits. Moderate-income households (80-150% AMI) can receive up to $4,000. The rebate amount depends on the projected or measured energy savings achieved by the retrofit.
Can I combine TECH Clean California with federal IRA rebates?
Yes, in most cases you can stack TECH Clean California incentives with federal HOMES or HEAR rebates. However, the combined incentives typically cannot exceed 100% of the project cost. Check with your contractor and the CEC for the latest stacking rules.
Do I qualify for California energy rebates if I rent my home?
Renters can benefit from some programs. The HEAR program covers renters in low- and moderate-income households. Utility programs like PG&E's Energy Savings Assistance Program also serve renters. For HOMES whole-home retrofits, the property owner typically needs to apply, but the benefits pass through to the renter.
How to Claim Your California Rebates
