# What heat pump rebates are still available in California for Sacramento-area homes?

> Heat pump rebates in California for Sacramento-area homes: which programs closed, what SMUD still pays, Roseville and PG&E areas, income help and scam warnings.

URL: https://tulesacramentoheatpump.com/guide/california-heat-pump-rebates/

Learn

A program-by-program status check for the incentives that used to stack on a heat pump, what each electric utility in the region offers, the income-qualified help that remains, and how to budget when no rebate applies.

For most Sacramento-area homes, the only heat pump rebate still open is SMUD’s, which pays $1,000 to $3,000 on qualifying systems. TECH Clean California and the federal HEEHRA rebates are closed, the federal 25C tax credit ended with 2025, and neither Roseville Electric nor PG&E lists a single-family heat pump rebate.

[Tule Sacramento Heat Pump](https://tulesacramentoheatpump.com/) installs ducted heat pumps across Sacramento, Placer, Yolo and El Dorado Hills, with the work carried out by licensed and insured contractors, and keeps this status list so budgets start from what is actually available. Incentives change; each one below is confirmed per project before it goes into a quote.

Key takeaways

- SMUD heat pump rebate: open, $3,000, $2,000 or $1,000 depending on system and fuel
- TECH Clean California: closed; last reservations were taken November 14, 2025
- HEEHRA: Phase I fully reserved in California; Phase II not yet announced
- Federal 25C credit: ended for equipment placed in service after December 31, 2025
- Roseville Electric and PG&E: no single-family heat pump HVAC rebate listed
- The CEC warns about scams offering federal heat pump rebates

## Program status at a glance

| Program | Who ran it | Status | What it offered |
| --- | --- | --- | --- |
| SMUD heat pump HVAC rebate | SMUD | Open, subject to funding | $3,000 variable-stage or $2,000 two-stage gas-to-electric; $1,000 electric-to-electric |
| SMUD Go Electric | SMUD | Open, subject to funding | Panel, subpanel and circuit rebates on gas-to-electric projects |
| TECH Clean California | California Public Utilities Commission program | Closed | Contractor-delivered incentives in investor-owned utility areas; reservations ended November 14, 2025 |
| HEEHRA (federal IRA rebates) | California Energy Commission, delivered through TECH | Closed | Up to $8,000 for households under 80% of area median income, up to $4,000 at 80% to 150% |
| HOMES (federal whole-home rebates) | California Energy Commission | Not launched | The CEC is exploring how to fold it into existing programs |
| Federal 25C tax credit | IRS | Ended | 30% up to $2,000 a year for systems placed in service 2023 through 2025 |
| Roseville Electric heat pump rebate | City of Roseville | Not offered | Older program archived; nothing current on the rebates page |
| PG&E single-family heat pump rebate | PG&E | None found | Rate option instead (E-ELEC) |

## The statewide programs that closed

Most of the money that once stacked on a heat pump came from two state-run channels, and both stopped taking new projects.

### TECH Clean California

TECH paid contractor-delivered incentives on heat pump HVAC and heat pump water heaters in investor-owned utility territory, which in this region meant homes with PG&E electric service. Its official notice, dated November 12, 2025, set November 14, 2025 as the last day to make sales and reserve incentives.

### HEEHRA

The federally funded Home Electrification and Appliance Rebates reached income-qualified owner-occupants, and landlords whose residents qualify, through TECH-certified contractors. Single-family funds reached full reservation statewide on February 24, 2026, with a Northern California waitlist. The CEC later reported Phase I fully reserved by August 31, 2026 and says Phase II, roughly $152 million, will be announced at a later date.

### HOMES

The second federal program, for whole-home energy savings, has not launched in California. The Energy Commission says it is exploring ways to integrate it with existing programs.

## The federal tax credit

The IRS Energy Efficient Home Improvement Credit, section 25C, paid 30% of a qualifying heat pump’s cost, up to $2,000 a year, for property placed in service from January 1, 2023 through December 31, 2025. It does not apply to equipment placed in service after that. The residential clean energy credit, 25D, covers other technologies but not air-source heat pumps. SMUD’s own pages describe the same cutoff. The [IRS credit page](https://www.irs.gov/credits-deductions/energy-efficient-home-improvement-credit) has the official wording.

## What each electric utility offers

Across the region, the incentive story changes at utility lines, and three electric utilities meet inside the metro. PG&E supplies gas everywhere.

| Electric utility | Areas | Heat pump incentive |
| --- | --- | --- |
| SMUD | Sacramento, Elk Grove, Folsom, Citrus Heights, Rancho Cordova, Galt, Carmichael, Fair Oaks, Arden-Arcade, Orangevale, North Highlands | Open rebate plus Go Electric |
| Roseville Electric | Roseville | None currently listed |
| PG&E (with Valley Clean Energy in Davis and Woodland; Pioneer Community Energy in Placer cities and El Dorado Hills) | West Sacramento, Davis, Woodland, Rocklin, Lincoln, Loomis, Granite Bay, Auburn, El Dorado Hills | No single-family heat pump rebate found |

### SMUD

SMUD’s rebate is the one substantial incentive left, and the [SMUD rebate guide](https://tulesacramentoheatpump.com/guide/smud-heat-pump-rebates/) covers it in full. It requires qualifying equipment installed by a participating contractor in the SMUD Contractor Network, and rebate-qualified installations are available on request.

### Roseville Electric

The City’s residential rebates page lists EV programs, PowerFlex, Home Energy Reports and solar, but no heat pump HVAC rebate. An earlier heat pump program appears only on archived pages. Roseville Electric can be reached at (916) 797-6937 to confirm. See the [Roseville service area page](https://tulesacramentoheatpump.com/service-areas/roseville/) for the rest of the local picture.

### PG&E and the community choice agencies

No current PG&E single-family heat pump rebate was found. Davis and Woodland customers get their generation from Valley Clean Energy, and the Placer County cities and El Dorado Hills from Pioneer Community Energy; it is worth checking those agencies directly for any program. The [Davis](https://tulesacramentoheatpump.com/service-areas/davis/) and [West Sacramento](https://tulesacramentoheatpump.com/service-areas/west-sacramento/) pages cover PG&E-area projects.

Budget a heat pump around the incentives that exist

Quotes show the rebate your utility actually offers, or none, so the net figure holds up.

## Income-qualified help that remains

There is no income-qualified heat pump replacement program on record for the area today, but some bill and energy help exists.

- **SMUD Energy Assistance Program Rate.** A monthly bill discount for income-qualified SMUD customers.
- **SMUD Energy Saver Bundle.** A no-cost in-home energy evaluation.
- **HEAP through Community Resource Project.** Bill assistance for income-eligible Sacramento County residents, reachable at 916-567-5200; whether its weatherization work extends to heat pump HVAC is not confirmed.

The City of Sacramento’s Home Energy Equity Pilot, which installed 22 heat pump HVAC systems in 2023 and 2024, has ended.

## Watch for rebate scams

The California Energy Commission warns that scams are offering federal heat pump rebates, and states plainly that federal, IRA-funded HEEHRA rebates are not currently available to Californians. A caller or ad promising one should be treated with suspicion. Retail instant-discount programs such as Golden State Rebates are aimed at products bought in stores, and no installed heat pump HVAC offer was found there.

## If no rebate applies

Outside SMUD, a budget should assume the full installed price. Three things still change the long-run cost.

### The electric rate

In PG&E territory, a home with a heat pump as its primary heating and cooling qualifies for the E-ELEC rate, which prices winter electricity below the default E-TOU-C plan. The [electric bill guide](https://tulesacramentoheatpump.com/guide/heat-pump-electric-bill-sacramento/) runs the numbers.

### The design

Where winter electricity is expensive, [a dual fuel heat pump](https://tulesacramentoheatpump.com/dual-fuel-heat-pump/) that keeps a newer furnace for the coldest mornings can make more sense than a full conversion.

### The permit fee

State law (SB 222) caps the permit fee for a residential heat pump HVAC system at $200 unless a city or county adopts written findings. It is not a rebate, but it limits one cost line.

The cost side is in the [conversion cost guide](https://tulesacramentoheatpump.com/guide/gas-furnace-to-heat-pump-conversion-cost/) and the [Sacramento cost guide](https://tulesacramentoheatpump.com/guide/heat-pump-installation-cost-sacramento/). If you are wondering whether a rule will force the switch anyway, the [California gas furnace rules guide](https://tulesacramentoheatpump.com/guide/california-gas-furnace-ban/) separates adopted rules from proposals. For a quote that shows the right incentive for your address, call (916) 516-1454 or [request an estimate](https://tulesacramentoheatpump.com/contact/).

## Questions about this guide

### Is the HEEHRA heat pump rebate coming back in California?

Possibly, but not on a set date. The California Energy Commission says Phase I of the federally funded HEEHRA program is fully reserved and that Phase II will be announced at a later date. Until the CEC announces it, no contractor can reserve HEEHRA money, and an offer claiming otherwise is one the CEC's scam warning applies to.

### Can I still claim the federal heat pump tax credit for a system installed after 2025?

No. The IRS Energy Efficient Home Improvement Credit (25C) covered qualifying heat pumps placed in service from January 1, 2023 through December 31, 2025, at 30% up to $2,000 a year. Equipment placed in service after that date does not qualify, and the residential clean energy credit (25D) does not cover air-source heat pumps.

### Does PG&E offer a heat pump rebate in Davis or West Sacramento?

No single-family heat pump HVAC rebate from PG&E was found, and the TECH Clean California and HEEHRA programs that used to serve PG&E territory are closed. What PG&E does offer is the E-ELEC rate, available when a heat pump is the home's primary heating and cooling, which lowers winter electricity prices compared with its default plan.

Want this answered for your house?

Call with your current system, the rooms that bother you and your ZIP code.

## Related service

Furnace to heat pump conversion

One ducted heat pump in place of the gas furnace and the central AC, sized from a load calculation and tested to Title 24.

## More guides

- Learn [How does the SMUD heat pump rebate work?](https://tulesacramentoheatpump.com/guide/smud-heat-pump-rebates/)What SMUD pays on a ducted heat pump, which homes and systems qualify, the permit and Title 24 steps the claim depends on, the Go Electric panel and circuit add-ons, and who files the paperwork.
- Cost Guide [How much does it cost to convert a gas furnace to a heat pump in Sacramento?](https://tulesacramentoheatpump.com/guide/gas-furnace-to-heat-pump-conversion-cost/)What a furnace-and-AC to heat pump conversion typically costs around Sacramento, which parts of the job carry a public figure, what the gas side adds, and how SMUD's gas-to-electric rebate changes the net.
- Learn [How much will a heat pump add to your electric bill in Sacramento?](https://tulesacramentoheatpump.com/guide/heat-pump-electric-bill-sacramento/)How heating moves from the gas bill to the electric bill, what a therm of heat costs under each local rate plan, how summer peaks and fixed charges work, and the settings that keep a heat pump's bill from creeping up.
- Learn [Is California banning gas furnaces in existing Sacramento homes?](https://tulesacramentoheatpump.com/guide/california-gas-furnace-ban/)Which rules exist, which apply only to new construction, what the City of Sacramento has and has not adopted, how SB 222 treats HOAs, and why timing is usually set by the furnace and the electric rate rather than a deadline.
- Cost Guide [How much does heat pump installation cost in Sacramento?](https://tulesacramentoheatpump.com/guide/heat-pump-installation-cost-sacramento/)Typical Sacramento-area ranges for ducted heat pump jobs, the public figures inside a price, permit fees by jurisdiction, the parts only a site visit can price, and which incentives are still open.