New Multifamily Central Heat Pump Water Heater Incentives Now Available in PG&E, SCE, SCG, and SDG&E Service Areas

TECH Clean California is offering contractors up to $300,000 per-system for residential central heat pump water heaters.

March 12, 2024

Across PG&E, SCE, SCG, and SDG&E service areas, incentives of $900 to $1,000 per kilowatt hour (kWh) are available for replacing existing water heaters with central heat pumps in multifamily buildings. Additional incentives of $200 per kWh are available for equipment that use refrigerants with a global warming potential of 150 or less.

This second phase of multifamily heat pump water heater incentives includes a total budget of $6 million with $4 million dedicated to customers who qualify for equity incentives. There is a $300,000 per-system incentive cap for residential central heat pump water heaters. A system is defined as a distinct central heat pump water heater system/plant serving a distinct group of households. There can be multiple central heat pump water heater systems that each serve their own group of households that do not share common hot water supply piping. A reservation can include multiple plants/systems.

Currently, there are no electrical upgrade incentives or pre-electrification incentives available for central heat pump water heater installations.

California multifamily building owners can learn more about the new central heat pump water heater incentives and select a contractor certified by TECH Clean California on the Switch Is On website at The Switch Is On also provides an incentive finder tool to help homeowners find additional local, state, and federal incentives that can be used in combination with TECH Clean California’s incentives.

About TECH Clean California

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.

About Switch Is On

The Switch Is On is an initiative of the Building Decarbonization Coalition and the consumer inspiration and education campaign for the TECH Clean California program. The Switch Is On provides resources and tools for California’s homeowners and renters to create a cleaner, safer, and smarter home.

The TECH Clean California initiative is funded by California ratepayers and taxpayers and administered by Southern California Edison Company under the auspices of the California Public Utilities Commission. The TECH Clean California team is led by Energy Solutions and partners with Ardenna Energy, Association of Energy Affordability, Building Decarbonization Coalition, Electrify My Home, Frontier Energy, National Comfort Institute, Energy Outlet, Recurve Analytics, The Ortiz Group, Tre’ Laine Associates, and VEIC.