New Heat Pump Water Heater Incentives Now Available for Californians

October 31, 2023, Oakland, CA

California’s flagship heat pump market transformation initiative, TECH Clean California, is launching $80 million in new incentives for heat pump water heaters available to homeowners beginning October 31. These new incentives make it easier to choose zero-emission water heating equipment that is cleaner, safer, smarter, and healthier for homes and the environment.

The statewide incentives are available to households who are replacing a traditional water heater with an electric heat pump water heater. When homeowners work with a participating TECH Clean California contractor, incentives range from $3,100 to $5,300 on a new heat pump water heater and up to an additional $4,000 for electrical panel upgrades. To receive the incentive, customers are required to enroll in a demand response program and a time-of-use electricity rate. Incentives are available on a first-come, first-served basis for a limited time only. TECH Clean California heat pump water heater incentives are also available for commercial properties starting October 31, and multi-family incentives will become available in December.

“TECH Clean California is boosting our clean energy incentives by offering Californians the highest market-rate incentives for heat pump water heaters yet, while also minimizing grid strain with optimized water heater scheduling and customer demand response program enrollment," says Emily Kehmeier, Senior Project Manager, Heat Pump Water Heater Strategy at Energy Solutions.

Heat pump water heaters are able to use energy during off-peak hours, storing hot water as needed and avoid energy use during peak hours when electricity rates are higher. The requirements of a demand response program and time-of-use rate help ensure that households optimize their energy use, while also contributing to making California’s energy grid cleaner, more reliable, and more affordable. California homeowners can learn more about the new heat pump water heater incentives and select TECH-enrolled contractors 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.

Since 2021, TECH Clean California has provided over $40 million in incentives to accelerate the market for heat pump technology across the state. The initiative offers incentives, workforce training, and consumer education to create a pathway for meeting California’s target of achieving carbon-free, climate-ready homes by 2045. TECH Clean California is committed to allocating 40 percent of program spending to serve low-income and disadvantaged communities.

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.

TECH Clean California 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.