California Heat Pump Rebates and Incentives Guide for 2026

If you have been putting off a heat pump upgrade because of the price tag, you are not alone. Heat pumps cost more upfront than a straight gas furnace replacement, and for many Bay Area homeowners, that gap has been the only reason they are still running an older gas system. California heat pump rebates can close a lot of that gap, but the incentive landscape changed significantly heading into 2026, and a program that was generous last year might be paused or fully booked today.

This guide walks through what is actually available right now, what recently ended, and how to make sure you are not planning your budget around a rebate that is no longer on the table.

What Changed for 2026

For the past few years, California homeowners could combine a federal tax credit with state and utility rebates to bring down the cost of a heat pump significantly. That is no longer the case. The federal government’s 25C Energy Efficient Home Improvement Credit, which offered 30 percent back on a qualifying installation up to $2,000 a year, ended for any equipment placed in service after December 31, 2025. If your heat pump was installed and running before that date, you may still be able to claim it on your 2025 taxes. For anything installed in 2026, that credit is off the table.

This shift makes it more important than ever to understand exactly what state and utility programs remain open in your area before you commit to a project timeline.

California’s TECH Clean CA and HEEHRA Rebates

The TECH Clean California program, run through the California Energy Commission, has offered rebates for qualifying heat pump installations of up to $4,000 for standard systems and up to $5,000 for systems using low global warming potential refrigerant, with higher amounts for income-qualified households through the High-Efficiency Electric Home Rebate Act, known as HEEHRA.

Here is the part that matters most right now: as of early 2026, single-family HEEHRA rebates are fully reserved statewide, and the program has stopped accepting new income verification applications. Homes in Northern California can be placed on a waitlist in case more funding opens up, but a waitlisted project only qualifies for a rebate if the heat pump goes in after the reservation gets approved. TECH Clean California is also no longer accepting new reservations for its standard heat pump HVAC incentives.

None of this means the money is gone forever. Funding cycles reopen, and waitlists do move. It does mean you should confirm current status with an enrolled contractor before counting on a specific dollar amount.

PG&E and Local Utility Rebates

PG&E periodically offers rebates and instant coupons on energy-efficient equipment through its Golden State Rebates program, along with financing options for larger heating and cooling upgrades. A dedicated cash rebate specifically for heat pumps is not consistently listed on PG&E’s current rebate page, so it is worth asking your contractor to check what is active at the time you book your installation rather than assuming a fixed amount.

Some Santa Clara County cities, including San Jose and Sunnyvale, have offered smaller supplemental incentives tied to local electrification goals in the past. These come and go with city budgets, so treat them as a bonus to look into rather than something to plan around.

How to Check What You Still Qualify For

Confirm your area median income: Your household income relative to your county’s area median income determines HEEHRA eligibility, and the income limits update every year.

Ask about waitlist status before scheduling: If HEEHRA funding is reserved in your region, ask your contractor whether a waitlist reservation is worth pursuing given your project timeline.

Get current utility numbers in writing: Utility rebate amounts and eligible equipment change throughout the year, so get written confirmation of what applies to your project at the time of installation, not what applied last year.

Keep your paperwork either way: Hold onto receipts, equipment efficiency ratings, and contractor licensing information. Even without the federal credit, this documentation matters for warranty claims and any future incentive programs.

Working through these steps with a contractor who installs heat pumps regularly is the fastest way to find out what you actually qualify for, instead of chasing programs that closed months ago.

That is exactly where TRIO Heating, Air & Plumbing comes in. As the only Daikin 3E Partner in California, our team stays current on which rebates are open, which are waitlisted, and how to stack whatever is available for your specific home. We handle the rebate paperwork where we can and make sure your installation meets the efficiency requirements each active program requires. Contact us online to find out what is realistically available for your heat pump upgrade this year.

FAQs About Heat Pump Rebates in California

What heat pumps qualify for rebates in California?

Most rebate programs require the heat pump to meet ENERGY STAR or CEE high-efficiency tier requirements for its category. Standard split systems and cold climate heat pumps from major manufacturers typically qualify, but the exact efficiency threshold depends on which program you are applying through. Your contractor can confirm eligibility for the specific unit you are considering before installation.

Are there rebates for heat pumps in California right now?

Some are open and some are not. TECH Clean California and HEEHRA rebates are largely reserved or waitlisted statewide as of early 2026, while utility rebates through providers like PG&E change throughout the year. Checking current availability with an enrolled contractor before you schedule installation is the only reliable way to know what applies to your project.

Is there still a federal tax credit for heat pumps in 2026?

No. The federal 25C tax credit ended for any heat pump placed in service after December 31, 2025, under recent federal tax legislation. If your installation happened before that date, you may still be able to claim it on your 2025 return, but installations in 2026 do not qualify for this credit.