Commercial Incentives

Heat Pump Water Heater Incentives

Starting October 31, 2023, TECH Clean California is offering incentives directly to contractors to support the installation of heat pump water heaters for non-residential customers. This includes installations at any non-residential, non-multifamily facility – for example, retail businesses, office buildings, and schools qualify. Installed heat pump water heaters may only serve the hot water needs of one business or entity; there is no funding for commercial central heat pump water heaters serving the needs of multiple non-residential customers.

Commercial heat pump water heater incentives are only available for electric customers of PG&E, SCE, SDG&E, and SMUD. SMUD customers must be gas customers of PG&E to be eligible. Please refer to the Switch is On Incentive Search tool for up-to-date information by entering a zip code to determine whether commercial incentives are available in a specified area.

Incentives are available only to TECH Clean California-enrolled contractors. To sign up, please go to

There are two types of commercial projects eligible for TECH Clean California incentives:

  • Small Business Unitary: The project uses a residential heat pump water heater and follows the same rules and simple application process as a single family residential project. See the Single Family and Small Business Checklist article on the Contractor Knowledgebase for more information. Contractors working on small business projects should reference the TECH Contractor Knowledge Base for more resources.
  • Large Commercial Unitary: The project uses commercial heat pump water heater equipment and follows a reservation process including custom incentives calculations. See the Large Commercial Heat Pump Water Heater Project Checklist linked under the Resources sidebar.

Commercial Unitary Incentives

Customer Class Unitary Heat Pump Water Heater Incentive Low-GWP Kicker* Max Incentive per Project
Large Commercial $700/kWh** $200/kWh** 50,000
Small Business $3,100/unit $1,500/unit N/A

*The low-GWP kicker applies to HPWHs that use refrigerants with a global warming potential (GWP) of 150 or less.

**Incentive dollar amount is per kWh of energy storage capacity. Large Commercial incentive applicants must propose the energy storage capacity of an individual system for program review.

Commercial Budget

Please refer to the Incentive Budget Report to review the total commercial budget as well as remaining funding.


Submit a Large Commercial Reservation Form

To reserve incentive funds for a Large Commercial project, complete the TECH commercial incentive reservation form linked below. If you have any questions, contact