HEEHRA Rebates

Multifamily HEEHRA Rebates

$35 million in rebates for multifamily projects is now available for heat pumps for space heating and cooling, heat pump water heaters, cooktops, ranges, ovens, and heat pump clothes dryers, as well as electrical equipment such as electrical panel upgrades and wiring.

Applications for multifamily HEEHRA rebates are now open. Multifamily property owners interested in HEEHRA rebates available through TECH Clean California can submit a quick Application Stage 1 Form to initiate an eligibility review. Multifamily projects that pass this initial screening will move to the next stage required to submit a HEEHRA rebate reservation form, including an agreement to program terms and conditions to secure funding. The rebates are funded by the federal Inflation Reduction Act, which is overseen by the U.S. Department of Energy and managed by the California Energy Commission.

If you are a multifamily property owner who is interested in finding out more, please apply here:

Note HEEHRA rebates for income-qualified, single family homeowners will become available as of November 12, 2024. The Application Stage 1 above does not apply to single family homes, which are defined as 1-4 units.

Who Qualifies?

Multifamily HEEHRA rebates are available for:

• Owners of multifamily properties in California which include five or more residential units and house income-qualified customers.
• Governmental, commercial, or nonprofit organizations carrying out a project for an owner of an eligible multifamily property.
• Low income multifamily properties categorized as ≤80 percent AMI (HEEHRA rebates can cover up to 100% of eligible project costs, not to exceed $14,000 per unit)
  • at least 66 percent of occupied living units are at or below 80 percent AMI, where clearly listed on a TECH-HEEHRA approved Federal, State, or Local Deed Restriction/Regulatory Agreement.
    OR
  • at least 66 percent of occupied living units are at or below 80% AMI, as verified by individual household income documentation, evidence of Section 8, and/or proxy documentation of categorical eligibility.
• Moderate income multifamily properties categorized as ≤150 percent AMI (HEEHRA rebates can cover up to 50% of eligible project costs, not to exceed $14,000 per unit)
  • In a disadvantaged community (DAC) and either:
  • at least 50% of occupied living units are at or below 150 percent AMI, where clearly listed on a TECH-HEERHA approved Federal, State, or Local Deed Restriction/Regulatory Agreement.
    OR
  • at least 50 percent of occupied living units are at or below 150 percent AMI, as verified by individual household income documentation, evidence of Section 8, and/or proxy documentation of categorical eligibility
• All multifamily properties receiving HEEHRA funds must comply with California Department of Industrial Relations (DIR) Prevailing Wage and Public Works Requirements.

As of November 12, 2024, HEEHRA rebates will be available for:

• California owners of a single family home (including manufactured or mobile homes) who either reside in the home and are income-qualified or rent the home to an income-qualified household.
  • Homeowners are eligible for rebates if the household income is at or below 150 percent of area median income (AMI). You can find out if you are eligible by using the pre-screening tool on this website to check income guidelines. To see a list of all counties and corresponding AMI limits, please see this document.

What equipment is eligible for HEEHRA rebates?

For owners of multifamily homes, eligible equipment includes ENERGY STAR® certified:

• Heat pumps for air heating and cooling
• Heat pump water heaters
• Electric stoves, cooktops, ranges, or ovens
• Heat pump clothes dryer

Electrical panel upgrades and wiring for multifamily properties are also eligible for rebates. Additional eligibility criteria will be provided. Since ENERGY STAR® certifications do not exist for multifamily central HVAC heat pumps and multifamily central heat pump water heaters, these products are exempt from the ENERGY STAR® certification requirement. Alternate product eligibility criteria will be provided.

For owners of single family homes, eligible equipment includes two-speed or variable speed ENERGY STAR® certified heat pumps for air heating and cooling.

How much are HEEHRA rebates?

HEEHRA rebate amounts differ based on the type of home (single family home or multifamily property), household income, and equipment.

For multifamily properties that provide homes to income-qualified Californians, rebates for eligible equipment and appliances per multifamily unit range from $700-$8,000. For low income multifamily properties, HEEHRA rebates can cover up to 100 percent of eligible project costs, not to exceed $14,000 per unit. For moderate income, multifamily properties, HEEHRA rebates can cover up to 50 percent of eligible project costs, not to exceed $14,000 per unit. All multifamily properties receiving HEEHRA funds must comply with California Department of Industrial Relations (DIR) Prevailing Wage and Public Works Requirements.

See below for a full list of qualified equipment for multifamily projects:

Multifamily HEEHRA Rebates

Multifamily – Low-to-Moderate Income (LMI)*
Heat Pump for Space Heating and Cooling – Two-Speed (Heat Pump HVAC)	$7,500
Heat Pump for Space Heating and Cooling – Variable Speed (Heat Pump HVAC)	$8,000
Heat Pump Water Heater (Electric to Electric)	$700
In-Unit Heat Pump Water Heater	$1,750
Central Heat Pump Water Heater**	$1,750 per unit served
Electric Load Service Center (Electric Panel)**	$4,000
Electric Wiring**	$2,500
Electric Stove, Cooktop, Range, or Oven	$840
Heat Pump Clothes Dryer	$840
Maximum per LMI Multifamily Household	$14,000

*Rebates subject to income and program rules and may be subject to change.

**ENERGY STAR® certifications do not exist for these product types. Alternate product eligibility criteria will be provided.

As of November 12, 2024, income-qualified single family homeowners will be able to apply for rebates for two- or variable speed heat pumps for space heating and cooling. Households with an income below 80 percent AMI are eligible for an $8,000 rebate, and households with an income between 80 and 150 percent AMI are eligible for $4,000 rebate.

Are HEEHRA rebates allowed retroactively for work performed before the program launch?

No. Equipment purchases and/or installations made before the HEEHRA rebates are available are not eligible. Only eligible equipment and appliances purchased with an approved HEEHRA rebate application available through a TECH Clean California-certified contractor AFTER the program application is open are eligible for rebates.

Any person or business offering to submit a program application on your behalf or signs a contract guaranteeing a rebate before the program begins cannot provide rebates for you at this time and is not associated with TECH Clean California, the California Public Utilities Commission (CPUC), the State of California, the California Energy Commission (CEC), or the rebate program administrator. If you are concerned that you were lied to or scammed, we encourage you to contact the California Department of Consumer Affairs at www.dca.ca.gov or call 1-800-952-5210; the California Attorney General’s Office at www.oag.ca.gov, the Better Business Bureau at www.bbb.org or your county’s District Attorney’s Office.

Are there other incentives or financing available to cover my project costs?

A TECH Clean California contractor can help identify all the incentives and rebates the customer qualifies for. HEEHRA rebates may be layered with other TECH Clean California incentives, state, local utility, and equipment rebates, grants, loans, and tax credits to help cover the cost of equipment and appliance purchases and installation.

Contractors who want to be certified to provide TECH Clean California incentives and HEEHRA rebates can enroll here.

HEEHRA is an Inflation Reduction Act (IRA)-funded program that is managed by the California Energy Commission. The CEC is distributing the first phase of HEEHRA funds through TECH Clean California.