End-of-year incentives offer Californians thousands in savings for heat pump technologies

November 3, 2025

As 2025 draws to a close, California residents have the unique opportunity to bring a heat pump home for the holidays. Before the end of the year, homeowners and renters can take advantage of thousands of dollars in TECH Clean California incentives—in addition to federal tax credits—to help fund a more energy efficient, cost-effective HVAC or hot water system.

TECH Clean California offers incentives to install heat pump technologies in homes across the state. When combining the federal 25C Energy Efficient Home Improvement Credit and the 25D Residential Clean Energy Credit with TECH Clean California incentives ranging between $1,000 and $4,000, Californians can save up to $7,700 on a new heat pump installation.

“There’s no better time to upgrade your HVAC system with a modern, efficient heat pump,” said Evan Kamei, Program Director for TECH Clean California. “Heat pumps provide comfortable home heating and cooling, deliver cleaner indoor air, and reduce energy use for years to come. Right now, homeowners can combine federal credits with TECH Clean California incentives to maximize savings.”

California residents can combine the following TECH Clean California incentives (while they last) with federal tax credits before the December 31 deadline:

  • Up to $4,000 for a new heat pump HVAC system and up to $5,700 for a new heat pump water heater
  • Up to $6,000 for a new heat pump HVAC system or up to $7,700 for a new heat pump water heater, when combining the above TECH Clean California incentives with $2,000 in federal tax credits

Californians can find more information on available incentives at The Switch Is On to find stackable incentives and rebates, reach out to a qualified TECH Clean California contractor, and explore all the ways heat pump technology can help improve a home and its electricity bills. To get your heat pump in time for the New Year, you can learn more about federal tax credits and how they stack with TECH Clean California incentives at buildingdecarb.org.

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