Heat Pump Pricing Index

California Heat Pump Rebates

Stackable incentives available to California homeowners installing a qualifying heat pump in 2026.

Max stackable total:$27,500(income-qualified)

What's available in California

California has the most complex incentive stack in the country. TECH is the statewide baseline; regional programs (BayREN, SoCalREN, SCE) layer on top. Confirm stacking rules before committing.

Federal §25C tax credit
$2,000
30% of project, capped
Federal HEEHRA rebate
$8,000
Income-qualified only (≤80% AMI)
California non-income-qualified
$7,500
2 programs
California income-qualified
$8,000
1 programs

Federal incentives

§25C tax credit: 30% of project cost up to $2,000, claimed via IRS Form 5695 for the tax year the system was installed. Locked in through 2032 by the Inflation Reduction Act.

HEEHRA rebate: Point-of-sale rebate up to $8,000 for households at or below 80% of area median income. Funded by the IRA, administered by each state. California is currently accepting applications.

California rebate programs

TECH Clean California

$4,500
rebate

Statewide incentive; amount varies by utility territory and system type (ducted vs heat pump water heater combo).

Source: techcleanca.com

BayREN Home+ (Bay Area)

$3,000
rebate

Bay Area residents only; stackable with TECH.

Source: bayren.org

CA HEEHRA (income-qualified)

$8,000
rebateIncome-qualified ≤80% AMI

Launched statewide 2025. Households under 80% AMI get up to full $8,000.

Source: energy.ca.gov

15 utility-specific programs not shown here. Enter your ZIP in the calculator to filter to just your utility.

Estimate your net cost

Used to determine HEEHRA eligibility (under 80% area median income).

Average installed cost
$12,500
Incentives offset 43% of the install−$5,400
  • Federal §25C tax credit−$2,000
  • Oncor Take A Look program−$1,200
  • CenterPoint Energy SCORE−$800
  • Austin Energy Heat Pump Rebate−$1,400
Estimated out-of-pocket$7,100

Estimate only. Tax credits require sufficient federal tax liability. Rebate stacking rules vary — confirm with your installer and utility before signing.

How to claim each rebate

  1. Get pre-approved (where required). Some utility programs require approval before install. Check program details before signing a contract.
  2. Use a participating contractor. Many programs require a licensed installer from an approved contractor list.
  3. Save documentation. AHRI certificate, model numbers, and itemized invoice are required for most utility rebates and the federal §25C credit.
  4. Submit utility rebate within 60–90 days of install. Some programs are first-come first-served and close mid-year.
  5. Claim federal credit at tax time using Form 5695 for the year you placed the system in service.

FAQ

Most California households can stack the federal $2,000 tax credit with up to $7,500 in state and utility rebates. Income-qualified households (under 80% AMI) may also access the $8,000 HEEHRA rebate plus an additional $8,000 in income-qualified state programs.