Statewide Small Multifamily Heat Pump Water Heater Incentives

January 29, 2025

As of today, January 29, 2025, TECH Clean California small multifamily incentives for unitary and central heat pump water heaters are available statewide. The incentives are available to TECH Clean California contractors across the state supporting multifamily properties/buildings servicing 10 or less units. The incentives are available on a first-come, first-served basis. Projects must be completed within four months from the date of reservation approval, no extensions allowed.

TECH Clean California is offering incentives of $3,100 to $4,185 per unit for replacing existing multifamily water heaters with unitary heat pumps statewide. 

Additional incentives from $2,000 to $4,000 are available to support electrical upgrades for all multifamily unitary customers and additional pre-electrification incentives for customers who are eligible for equity incentives. TECH Clean California is offering incentives of $900 to $1,000 per kilowatt hour (kWh) statewide for replacing existing multifamily central water heaters with central heat pumps. Additional incentives of $200 per kWh are available for equipment that use refrigerants with a global warming potential of 150 or less. Please note, there are no electrical upgrade incentives or pre-electrification incentives available for central heat pump water heater installations.  

Small multifamily heat pump water heater incentives include a total budget of $600,000, with $400,000 dedicated to customers who qualify for equity incentives and $200,000 for market-rate incentives. There is a $90,000 aggregate contractor cap for small multifamily incentives. Contractors are informed of incentive form and equipment requirement nuances unique to this round of funding.

Learn more about available multifamily incentives at techcleanca.com/incentives/multifamily-information.

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 Anchor Blue Consulting, Ardenna Energy, Association of Energy Affordability, Building Decarbonization Coalition, Central Coast Energy Services, Inc., Electrify My Home, Frontier Energy, National Comfort Institute, Energy Outlet, Recurve Analytics, The Ortiz Group, Tre’ Laine Associates, and VEIC.