TECH Clean California Works
TECH Clean California is leading the state’s heat pump transition
Since its launch in 2021, TECH Clean California has deployed over 75,000 heat pump HVAC and water heating projects in single-family and multifamily homes in 54 of 58 counties across the state.
Forty–five percent of TECH Clean California incentives have been distributed to single and multifamily projects in income–qualified and disadvantaged communities.
The initiative has delivered reliable emissions reductions helped many customers lower bills, increasing grid reliability, while increasing comfort, especially in the face of extreme heat. In addition, the initiative has been emulated for its excellence in building decarbonization, winning three national awards for market transformation.
Affordability
Heat pump replacements lower customer energy bills through energy efficiency and by growing off–peak load that spreads fixed grid costs – the prime driver of recent large electricity rate increases in California – across more electricity sales. These projects also provide cost–effective greenhouse gas (GHG) savings.
As the tables below show, there is a wide range of outcomes and benefits for customers. For customers with existing air conditioning (AC), they receive significant customer bill savings by installing highly efficient heat pumps. For customers without existing AC, they get critical access to cooling.
Average heat pump bill outcomes by segment
Evaluator Analysis (entire portfolio, solar + non–solar):
| Fuel Type | All HP HVAC + HPWH |
|---|---|
| Electric | $333 |
| Gas | –$344 |
| Total | –$11 |
Implementor Analysis of different project types for non–solar customers:
| Fuel Type | HP HVAC, AC Detected | HP HVAC, No AC Detected | HPWH |
|---|---|---|---|
| Electric | $246 | $583 | $340 |
| Gas | –$551 | –$514 | –$437 |
| Total | –$304 | $69 | –$97 |
Growing Market Support
Contractors report that heat pumps and heat pump water heaters make up a growing share of their installations. In a 2024 survey of 115 contractors, 62 percent of their HVAC jobs in the prior year involved heat pumps, water heater installation share, from 16 to 40 percent of reported water heater installations.
The survey found that TECH Clean California heat pump trainings were effective and a good investment, and employers valued the skills learned: nearly half (43 percent) of attendees received a promotion within six months.
Customer Satisfaction
Overall, TECH Clean California participants have been very satisfied with their heat pumps:
| Technology | Customer Satisfaction (%) | Good / Great Value (%) |
|---|---|---|
| Heat pump water heater | 90% | 89% |
| Ducted heat pump HVAC | 91% | 92% |
| Ductless heat pump HVAC | 97% | 96% |
Top five reasons customers see heat pumps as good value:
Equity
Since the July 2025 launch of TECH Clean California’s dedicated low–income enhanced incentives, income–qualified customers have received 62 percent of program incentives. TECH Clean California has found there is a sizable income–qualified customer segment willing and able to pursue equipment upgrades even without 100 percent subsidies.
Over 900 heat pumps have been installed in mobile homes through TECH Clean California across the state, representing penetration of a typically difficult to reach customer segment.
Customers on income–qualified rates, such as CARE/FERA, typically experience more bill savings from fuel substitution than market rate customers.
TECH Clean California’s Low–Income Leveraging Pilot served 520 households in SJV, ESA, ESA–BE direct install programs, providing an average of $5,893 for remediation and minor home repairs.
Multifamily
Multifamily buildings house roughly half of low–income households, making this sector critical for achieving equitable, large–scale decarbonization. To date, TECH Clean California has served over 15,000 multifamily units, with 73 percent of multifamily funding deployed across equity communities, including low–income households and/or in disadvantaged communities.
Multifamily building electrification requires a distinct approach tailored to its needs, including dedicated funding and technical assistance, electrification readiness, and infrastructure support.
The need for incentive layering is particularly acute in the multifamily sector. Multifamily heat pump water heater projects were often funded through a variety of incentive sources, in addition to TECH Clean California incentives.
Learn more about TECH Clean California
- Explore our data analysis
- Learn more about our Quick Start Grants and pilot results
- Read more about our equity effort
These lessons learned are included in our draft report filed as part of CPUC Proceeding R.19-01-011 which is subject to edits based on stakeholder feedback.