Heat Pump Water Heater Rebates in California (2026)
Find heat pump water heater rebates and incentives in California for 2026, including the federal HOMES and HEAR programmes, state incentives and utility rebates.
Programme status and income limits on this page were last checked against official state and federal sources on . These programmes change without notice.
HEAR Heat Pump Water Heater Rebate in California
HEAR has launched in California but is launched, funds reserved (waitlist), so availability for heat pump water heater rebates is limited. Check the official programme page for the current terms.
HOMES Rebate for Heat Pump Water Heater in California
California's HOMES programme is not available today. When it launches, a heat pump water heater installed as part of a whole-home retrofit could qualify for rebates up to $8,000.
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Heat Pump Water Heater in California: What’s Available in 2026
Heat pump water heaters qualify for up to $1,750 in HEAR rebates and are one of the most cost-effective energy upgrades you can make. They use 2-3 times less energy than conventional electric water heaters, and federal plus utility rebates can cover a large portion of the upfront cost.
Heat Pump Water Heater Rebates
Under the HEAR program, heat pump water heaters are eligible for rebates up to $1,750. This covers the most popular models on the market, since a typical heat pump water heater costs between $1,200 and $3,500 installed.
For households at or below 80% AMI, the rebate covers 100% of the cost up to $1,750, meaning many families can get a heat pump water heater installed at little to no cost. Households between 80-150% AMI receive 50% of costs up to the cap.
Important: only heat pump water heaters qualify for this rebate. Standard electric resistance water heaters and gas water heaters are not eligible. The heat pump technology works by extracting heat from surrounding air to heat the water, making it far more efficient than traditional methods.
This rebate is part of your household's overall $14,000 HEAR cap, so plan accordingly if you're also pursuing other upgrades like a heat pump HVAC system or electrical panel.
Qualifying Models
To qualify for the HEAR rebate, your heat pump water heater must meet ENERGY STAR certification requirements. The good news is that most major manufacturers now offer qualifying models:
- Rheem ProTerra: One of the most popular and efficient models, with a Uniform Energy Factor (UEF) up to 4.0. Available in 40, 50, 65, and 80-gallon sizes.
- A.O. Smith Voltex: A reliable option with strong efficiency ratings and wide availability through major home improvement retailers.
- Bradford White AeroTherm: A contractor-favorite brand with solid performance in various installation environments.
- Stiebel Eltron Accelera: A premium European-engineered option known for quiet operation and high efficiency.
When selecting a model, consider your household size (50-gallon is standard for 3-4 people), the installation location (heat pump water heaters need adequate air space around them), and the ambient temperature of the installation area (they work best in spaces that stay above 40°F year-round).
Stacking Utility and Federal Rebates
One of the smartest moves you can make is combining your HEAR rebate with utility incentives. Many utility companies offer their own rebates for heat pump water heaters, typically ranging from $200 to $1,000.
Here's how stacking might work in practice: Say your heat pump water heater costs $2,800 installed. If you're at or below 80% AMI, HEAR covers $1,750. Your utility offers a $500 rebate. Your total out-of-pocket drops to $550 for an appliance that will save you $300-$500 per year on water heating costs.
To stack rebates effectively:
- Check your utility's rebate program first, as some require pre-approval before purchase.
- Apply for the HEAR rebate through your state's program (this is typically handled at point of sale by participating contractors).
- Submit your utility rebate application separately, usually with proof of purchase and installation.
- Some states also offer additional state-level incentives that can be layered on top.
Keep all receipts, contractor invoices, and model number documentation. You'll need these for each rebate application.
California State Programs for Heat Pump Water Heater
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 moreSelf-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 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 Heat Pump Water Heater Rebates in California
These utility companies in California may offer additional rebates for heat pump water heater 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 Water Heater Rebates in California
Your eligibility for the maximum heat pump water heater 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 |
Calculate Your Heat Pump Water Heater Rebate
Use our calculator to estimate your total savings including federal, state, and utility rebates.
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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 water heater in California?
Nothing yet. HEAR is launched, funds reserved (waitlist) in California, so no federal heat pump water heater 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 water heater 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 water heater 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 water heater 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.
How much is the rebate for a heat pump water heater?
The HEAR program provides up to $1,750 for a heat pump water heater. Households earning at or below 80% AMI get 100% of costs covered up to that cap. Households at 80-150% AMI get 50% of costs covered up to $1,750. You can often stack this with utility rebates of $200-$1,000 for even greater savings.
Do regular electric or gas water heaters qualify for rebates?
No. Only heat pump water heaters qualify for the HEAR rebate. Standard electric resistance water heaters and gas water heaters are not eligible. Heat pump water heaters use a fundamentally different technology that is 2-3 times more efficient, which is why they qualify for federal incentives.
Where should I install a heat pump water heater?
Heat pump water heaters need a space with at least 700-1,000 cubic feet of air around them (roughly a 10x10 foot room). They work best in areas that stay above 40°F year-round, like a basement, garage, or utility room. They also produce cool, dehumidified air as a byproduct, which can be a bonus in warm climates but a consideration in cold basements.
How much will I save on energy bills with a heat pump water heater?
Most households save $300-$500 per year on water heating costs after switching from a standard electric water heater. Savings are even greater if you're switching from an electric resistance model in an area with high electricity rates. Over the 13-15 year lifespan of the unit, total savings typically range from $4,000 to $7,500.
Can I get the water heater rebate and a heat pump HVAC rebate?
Yes. The HEAR program allows you to claim rebates for multiple eligible appliances, up to a total household cap of $14,000. A heat pump water heater ($1,750) combined with a heat pump HVAC system ($8,000) would use $9,750 of your cap, leaving room for additional upgrades like insulation or an electrical panel.
