Heat Pump Rebates in California (2026)

Find heat pump rebates and incentives in California for 2026, including the federal HOMES and HEAR programmes, state incentives and utility rebates.

Only partly available in California. HEEHRA single-family rebates have been fully reserved statewide since 24 February 2026, though multifamily remains available. The HOMES whole-home program has not launched. Availability can be limited by region, by housing type or by remaining funds, so check the official page for the current terms before committing to a project. Source: California Energy Commission (CEC).

Programme status and income limits on this page were last checked against official state and federal sources on 31 July 2026. These programmes change without notice.

Varies Max HEAR Rebate

Not launched yet HOMES Status (CA)

Launched, funds reserved (waitlist) HEAR Status (CA)

4 Utility Programs

HEAR Heat Pump Rebate in California

Status: Launched, funds reserved (waitlist)

HEAR has launched in California but is launched, funds reserved (waitlist), so availability for heat pump rebates is limited. Check the official programme page for the current terms.

HOMES Rebate for Heat Pump in California

Status: Not launched yet

California's HOMES programme is not available today. When it launches, a heat pump installed as part of a whole-home retrofit could qualify for rebates up to $8,000.

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Heat Pump in California: What’s Available in 2026

Heat pumps are the single most valuable rebate available under the Inflation Reduction Act's HEAR program, with up to $8,000 in coverage for qualifying households. Whether you're replacing a gas furnace or upgrading an aging central air system, a heat pump can slash your heating and cooling costs while unlocking the largest individual appliance rebate in the program.

How Heat Pump Rebates Work in 2026

The High-Efficiency Electric Home Rebate Act (HEAR) provides point-of-sale rebates for heat pump installations. Unlike tax credits, these rebates reduce your upfront cost at the time of purchase rather than requiring you to wait until tax season.

For households earning at or below 80% of your area's median income (AMI), the program covers 100% of the cost up to $8,000. Households between 80-150% AMI receive 50% coverage, still up to the $8,000 cap. If your household income exceeds 150% AMI, you are not eligible for HEAR heat pump rebates, but you may still qualify for HOMES performance-based rebates.

Note: The Section 25C federal tax credit for heat pumps, which previously offered up to $2,000 per year, expired on December 31, 2025 under the One Big Beautiful Bill Act (OBBBA). HEAR and HOMES are the primary federal incentive paths for heat pumps in 2026.

State energy offices administer these rebates, so availability and application processes vary by state. Some states launched their programs in late 2025, while others are rolling out in 2026. Check your state's energy office website for current availability.

Types of Heat Pumps That Qualify

Several types of heat pumps qualify for the HEAR rebate, giving homeowners flexibility based on their home's existing infrastructure and climate zone:

Air-source heat pumps (ducted): The most common type, replacing traditional furnace and AC combos. These work well in most climates and are the most frequently rebated option.
Air-source heat pumps (ductless mini-splits): Ideal for homes without existing ductwork, room additions, or supplemental heating/cooling. Each indoor unit serves a specific zone.
Cold-climate heat pumps: Engineered for regions where temperatures regularly drop below 0°F. These carry higher efficiency ratings at low temperatures and are increasingly popular in the Northeast and Upper Midwest.
Ground-source (geothermal) heat pumps: The most efficient option available, using stable underground temperatures. Higher upfront costs but dramatically lower operating expenses.

To qualify, heat pumps must meet ENERGY STAR efficiency requirements. Your contractor should verify that the specific model is eligible before installation.

How to Maximize Your Heat Pump Rebate

Getting the most value from your heat pump rebate takes some planning. Here are practical strategies that homeowners are using to stretch their dollars further:

Stack HEAR with utility rebates. Many utility companies offer their own heat pump incentives ranging from $500 to $3,000. These can typically be combined with federal HEAR rebates, effectively lowering your net cost even more. Call your utility provider before you start the project.

Consider the HOMES program as an alternative. If your income exceeds 150% AMI, you won't qualify for HEAR. But the HOMES program offers up to $8,000 for whole-home retrofits that achieve significant energy savings. A heat pump is often the centerpiece of a HOMES-eligible project.

Get multiple contractor quotes. Prices for the same heat pump installation can vary by thousands of dollars depending on the contractor. Get at least three quotes and verify each contractor is familiar with the HEAR rebate process in your state.

Bundle with insulation or air sealing. A heat pump performs best in a well-insulated home. Adding insulation (which has its own $1,600 HEAR rebate) improves heat pump efficiency and can qualify you for higher HOMES rebates based on total energy savings.

California State Programs for Heat Pump

TECH Clean California

Statewide incentive program for heat pump HVAC and water heating systems. Single-family incentives closed to new reservations November 14, 2025 (all regions fully exhausted by February 2026). Multifamily program may still have budget. Visit techcleanca.com for status updates and to find a participating contractor for future phases.

Amount: Was up to $5,800 for heat pump HVAC, up to $4,885 for heat pump water heater (closed to new single-family reservations)

Learn more

Self-Generation Incentive Program (SGIP)

Provides rebates for battery storage systems paired with solar. All ratepayer-funded SGIP budgets (General Market, Equity, Equity Resiliency) closed December 31, 2025. Income-qualified households at or below 80% AMI can join the RSSE AB 209 waitlist. Historical tier amounts: $150/kWh general, $850/kWh equity, $1,000/kWh equity resilience (high fire-risk areas).

Amount: Waitlist only -- check selfgenc.com for RSSE AB 209 availability

Learn more

CalSHAPE (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 more

Utility Heat Pump Rebates in California

These utility companies in California may offer additional rebates for heat pump installations. Utility rebates can typically be stacked with HEAR and HOMES rebates.

Pacific Gas & Electric (PG&E)

PG&E's rebates page no longer lists its own heat pump, water heater, thermostat or insulation rebates (checked 4 October 2026). Income-qualified households (at or below 200% federal poverty level) can get no-cost upgrades, including heat pump water heaters, through the Energy Savings Assistance Program. PG&E still lists EV-charging, used-EV and backup-battery rebates.

Southern California Edison (SCE)

Delivers heat pump incentives through the statewide TECH Clean California program (currently closed to new single-family reservations). Income-qualified customers can receive up to $4,200 for electrical panel upgrades through the Charge Ready Home program, and free weatherization and efficiency upgrades through the Energy Savings Assistance Program. Check sce.com for current rebate availability by equipment type.

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. Additional weatherization rebates available for insulation and air sealing. Visit ladwp.com/rebates for current program status and eligible equipment.

San Diego Gas & Electric (SDG&E)

Primarily administers statewide TECH Clean California and SGIP programs for San Diego-area customers. Standalone utility rebate amounts vary by equipment and program cycle -- visit sdge.com/rebates for current incentives on HVAC, insulation, and water heaters. The CHERP (Customer Home Electrification Readiness Program) can help you identify and stack available incentives.

Income Eligibility for Heat Pump Rebates in California

Your eligibility for the maximum heat pump rebate depends on your household income relative to the Area Median Income (AMI) in your area.

Area	80% AMI (Family of 4)	150% AMI (Family of 4)
Los Angeles County	$133,250	$249,800
Riverside County	$98,400	$184,500
San Diego County	$139,900	$262,300
Orange County	$148,850	$279,000
Alameda County	$135,750	$254,500
Sacramento County	$105,100	$197,000

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Before you spend money on this

Energy Rebate Calculator is an independent website. It is not affiliated with, endorsed by, or operated by the U.S. Department of Energy, California, or any other government agency, and nothing on this page is an offer, an application, or a promise of payment.

Federal and state rebate programmes launch, pause, change their amounts and run out of funds without notice, and eligibility rules differ by county, household size, housing type and sometimes by region within a state. Most programmes also refuse to pay for work completed before their launch date.

Confirm your eligibility and the current terms directly with the administering agency, and get written confirmation, before you sign a contract or buy equipment. Where this page cites an official source, that source governs. If you spot something out of date, tell us and we will correct it.

Frequently Asked Questions

How much can I get for a heat pump in California?

Nothing yet. HEAR is launched, funds reserved (waitlist) in California, so no federal heat pump rebate can be claimed there today, and rebates are generally not paid for work completed before a programme launches. Once it opens, the federal framework allows up to varies for households at or below 80% of Area Median Income, and 50% of the cost up to the same cap for households between 80% and 150% AMI. Utility rebates may be available now regardless.

Is the HEAR program open in California for heat pump rebates?

The HEAR status in California is: Launched, funds reserved (waitlist). The programme has launched but availability is limited, so check the official programme page for the current terms.

Can I combine heat pump rebates with other incentives in California?

Yes. In California, you can typically stack HEAR rebates with HOMES whole-home rebates (if you qualify for both), state-specific programmes like TECH Clean California, and with utility rebates. Combined incentives generally cannot exceed 100% of the project cost, and the same measure cannot always be claimed twice.

What income qualifies for the maximum heat pump rebate in California?

To qualify for the maximum rebate, your household income must be at or below 80% of Area Median Income (AMI) for your county in California. For example, in Los Angeles County, 80% AMI for a family of 4 is $133,250. Households between 80% and 150% AMI receive 50% of costs up to the cap.

What is the maximum heat pump rebate I can get in 2026?

The maximum HEAR rebate for a heat pump is $8,000. Households at or below 80% of area median income (AMI) can receive 100% of costs covered up to that cap. Households between 80-150% AMI receive 50% of costs up to $8,000. You may also be able to stack this with utility rebates worth $500 to $3,000 or more. The Section 25C tax credit for heat pumps expired December 31, 2025 and is not available for 2026 installations.

Can I get a heat pump rebate if I make too much money?

The HEAR heat pump rebate is limited to households at or below 150% of area median income. If your income exceeds that threshold, you may still qualify for the HOMES rebate program, which provides up to $8,000 based on whole-home energy savings rather than income alone. Utility rebates are also generally available regardless of income.

Do I have to replace my entire HVAC system to get the rebate?

Not necessarily. You can qualify for the HEAR rebate by installing a heat pump as a replacement for an existing heating or cooling system. Ductless mini-split heat pumps are a popular option for homes that want to add efficient heating/cooling without replacing the entire system. However, the rebate applies to the heat pump itself, not to keeping your old system running alongside it.

Is the heat pump rebate a tax credit or a point-of-sale discount?

The HEAR heat pump rebate is a point-of-sale rebate, meaning it reduces your cost at the time of purchase. This is different from a tax credit, which you claim when filing your taxes. The point-of-sale structure is especially helpful for lower-income households that may not have the cash to pay full price upfront and wait for a tax refund. Note: The former Section 25C tax credit for heat pumps expired December 31, 2025.

Can I combine the heat pump rebate with other IRA rebates?

Yes. The HEAR program has a per-household cap of $14,000 total across all eligible appliances. Your $8,000 heat pump rebate leaves $6,000 that could be used for other upgrades like insulation ($1,600), an electrical panel ($4,000), or a heat pump water heater ($1,750). You can also potentially access HOMES rebates and utility incentives on top of HEAR.