About
TECH Clean California is a statewide initiative to accelerate the adoption of clean space and water heating technology across California homes in order to help California meet its goal of being carbon-neutral by 2045. The initiative provides market incentives and workforce education and training to make it easier for distributors and contractors to stock, sell, and install low-emissions heat pump technology for residential replacement projects. It was designed to support both existing programs through matched incentive funding, and to extend incentives statewide with an emphasis on access for low-income and disadvantaged communities.
Funding
Original Funding: TECH Clean California's original funding was provided by California gas corporation ratepayers under the auspices of the California Public Utilities Commission. $116 million was allocated to TECH Clean California to spend over a four-year period, with $72 million reserved for incentives. This funding was allocated proportionally to gas investor-owned utility (IOU) share of cap-and-trade allowances per the below.
CPUC Funding: TECH Clean California was allocated an additional $50 million in new funding from the California 2022/2023 fiscal year budget via CPUC Decision 23-02-005. Information on new incentive budgets and the amounts remaining can be found on the Incentives page.
GGRF Funding: TECH Clean California was awarded $25 million for the Single Family Heat Pump HVAC Incentive program. This funding is through the state of California’s Greenhouse Gas Reduction Fund (GGRF), administered by the California Public Utilities Commission (CPUC). The GGRF funds are in place to reduce greenhouse gas (GHG) emissions, strengthen the economy, improve public health and the environment, and provide benefits to residents of disadvantaged communities, low-income communities, and low-income households.
HEEHRA Rebates Funding: HEEHRA rebates are funded by the Inflation Reduction Act (IRA), are overseen by the U.S. Department of Energy and managed by the California Energy Commission. TECH Clean California is administering the first phase of the HEEHRA program which launched on November 12, 2024.
Incentive Layering: TECH Clean California has partnered with the following programs to combine, or "layer", incentives for heat pump water heating and heat pump HVAC systems throughout the state:
History
Sep. 2018:
Executive Order B-55-18 requires California to be carbon neutral by 2045; Senate Bill 1477 authorizes funding for TECH Clean California and BUILD pilot programs, with TECH Clean California focused on building retrofits and BUILD focused on new construction.
Jan. 2019:
The California Public Utility Commission (CPUC) initiates building decarbonization rulemaking (R.19-01-011). Phase 1 includes implementing TECH Clean California.
Mar. 2020:
CPUC Decision 20-03-027 establishes TECH Clean California guidelines. As part of the Decision, Southern California Edison is directed to conduct the request for proposal for the initiative implementer.
Sept. 2020
BayREN heat pump water heater incentive launch.
Nov. 2020:
Team, led by Energy Solutions, is selected as TECH Clean California initiative implementer.
Jun. 2021:
TECH Clean California initiative implementation begins.
Dec. 2021:
Incentive Clearinghouse launches; statewide incentives available.
May. 2022:
Single family and multifamily market rate incentives are suspended due to budget exhaustion throughout most of the state.
Jul. 2022:
Public reporting website launches.
Sep. 2022:
TECH Clean California receives $145 million to expand decarbonization efforts.
Nov. 2022:
TECH Clean California publishes annual report covering the first Program year.
Jan. 2023:
The CPUC allocates $50 million in new funding to TECH Clean California through Decision 23-02-005.
Apr. 2023:
Incentives for installations of heat pump HVAC systems in single family residences become available again. See Incentives for more information.
May 2023:
TECH Clean California 2022 Quick Start Grant recipients launch programs.
Oct. 2023:
Incentives for installations of heat pump water heater systems in single family market rate and equity residences become available. See Incentives for more information.
TECH Clean California supports manufacturers committed to new heat pump technology and capacity goals at the Building Electrification Summit.
Dec. 2023:
CCCE funding for HP HVAC and heat pump water heater relaunches for single family and multifamily incentives. See Incentives for more information.
Feb. 2024:
PGE Electric investor-owned utilities and SMUD Electric service area funding is fully reserved for single family market rate customers. See Incentives for more information.
Incentives for heat pump water heaters now require demand response and time-of-use enrollment for SMUD service area.
Mar. 2024:
Non-SMUD publicly owned utility electric service area funding is fully reserved for single family market rate customers. See Incentives for more information.
TECH Clean California releases annual report covering second year market transformation results.
Apr. 2024:
Additional $5 million in funds are allocated to single family heat pump water heater equity incentives in Pacific Gas and Electric Company (PG&E), San Diego Gas & Electric Company (SDG&E), and Southern California Gas Company (SoCalGas) service areas as of April 22, 2024. See Incentives for more information.
SDG&E electric inventor-owned utility service area funding is fully reserved for single family market rate customers. See Incentives for more information.
May 2024:
PG&E electric inventor-owned utility service area funding is fully reserved for single family income-qualified customers.
SCG Electric IOU service area funding is fully reserved for Single Family Equity AND Market Rate customers. See Incentives for more information.
Jun. 2024:
Non-SMUD publicly owned utility electric service area funding is fully reserved for single family income-qualified customers. See Incentives for more information.
Jul. 2024
SDG&E electric investor-owned utilities service area funding is fully reserved for single family income-qualified customers. See Incentives for more information.
Jul. 2024
$25 million was awarded to TECH Clean California through the state of California’s Greenhouse Gas Reduction Fund (GGRF), administered by the California Public Utilities Commission (CPUC).
Oct. 2024
Multifamily heat pump HVAC, heat pump water heater, cooktop, range, oven, and/or heat pump clothes dryer HEEHRA rebates offered through TECH Clean California are available to income-qualified multifamily property owners. See Incentives for more information.
Nov. 2024
Single family heat pump HVAC HEEHRA rebates offered through TECH Clean California are available to income-qualified Californians. TECH Clean California single family market rate heat pump HVAC incentives are available to Californians who enroll in an electric utility demand response program, if one is available to them. See Incentives for more information.
TECH Clean California Team
Energy Solutions
A mission-driven clean technologies implementation firm that has pioneered market-driven solutions that deliver reliable, large-scale, and cost-effective results to utility, government, and private sector clients across North America.
Association for Energy Affordability
A not-for-profit technical services and training organization at the forefront of increasing energy efficiency and green building practices in multifamily buildings.
The Ortiz Group
A mission driven program management and training services company that specializes in serving low-income communities.
National Comfort Institute
An organization devoted to education for Heating, Ventilation, and Air Conditioning professionals, delivering customized HVAC decarbonization training.
Anchor Blue Consulting
A small energy consulting firm specializing in services related to energy efficiency, renewable energy, demand response and other demand side management needs in the energy world.
VEIC
A sustainable energy company that
designs and implements decarbonization
pilots and programs that reduce energy
burdens and advance emerging technologies
and models.
Building Decarbonization Coalition
A coalition of energy providers, manufacturers, design & construction firms, local governments, and NGOs committed to eliminating emissions from the built environment.
Ardenna Energy
A clean energy consultancy focused on bringing residential energy efficiency and electrification technologies to market.
Tre’Laine
A WBE consultancy firm focused on crosscutting design, strategy, implementation, and evaluation of energy efficiency programs.
Central Coast Energy Services, Inc.
A not-for-profit organization which provides energy conservation, consumer education & advocacy, home improvement, utility assistance, job training, and other services to people in need.
Frontier Energy
A professional services firm delivering energy efficiency, market transformation, and transportation solutions through technical consulting, program design and implementation, and technology development.
Recurve
A software company providing integrated program administration, measurement and verification, and data analytics support to utilities and program implementers.
Electrify My Home
A partnership operated by Larry Waters that provides real world contractor education for the skills required for “Good Electrification”.
Energy Outlet
A utility rebate program administrative service making it simpler for contractors to navigate utility programs and enable them to pursue more energy-related opportunities and grow their business.