Upcoming Single Family Heat Pump HVAC and Heat Pump Water Heater Incentives

July 10, 2025

Starting July 15, 2025, TECH Clean California will launch market rate and equity single family incentives for heat pump water heaters and heat pump HVAC. The incentives will be available through TECH Clean California contractors. At least 50 percent of the incentives are dedicated to equity projects.

Heat pump water heater incentives: California residents of single family homes may receive $1,100 in Northern California and $3,100 in Southern California for heat pump water heater incentives.

Regardless of the home location, customers whose income qualifies for equity incentives may receive $3,500 in heat pump water heater incentives.

Heat pump HVAC incentives: California residents of single family homes may receive incentives ranging from $1,000 to $5,000 depending on HVAC technology and income qualifications. Requirements to receive a TECH Clean California heat pump water heater incentive include customers enrolling in a demand response program, a time-of-use rate, and a water heater rewards program, where available. These requirements also provide customers with additional savings and benefits when reducing or shifting electricity use to lower cost times of the day.

All equipment incentives will be passed through the TECH Clean California contractor to the customer. A full list of incentives can be found on the Switch is On Incentive Finder.

Stay up to date with available incentives by checking the TECH Clean California budget report at techcleanca.com/incentives.

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Funding for this project is part of California Climate Investments, a statewide initiative that puts billions of Cap-and-Trade dollars to work reducing greenhouse gas emissions, strengthening the economy, and improving public health and the environment — particularly in disadvantaged communities.