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California · checked October 21, 2026
Heat pump water heater rebates in California
2 programs pay toward a heat pump water heater in California right now, with 3 separate offers between them. The largest stated amount is $4,000 (a maximum), from SMUD heat pump water heater and induction rebates (Gas to electric). These offers are tied to SMUD and PG&E, SCE and SDG&E customers; the other California utilities' own programs have not been read yet. The federal 25C credit for this upgrade ended on December 31, 2025, so the state and utility money below is what is left.
What California pays for heat pump water heaters
SMUD heat pump water heater and induction rebates Open
Run by Sacramento Municipal Utility District (SMUD) · for customers of 1 utility
- Gas to electric: $3,000 (50+ gallons), $3,500 (65+ gallons) or $4,000 (80+ gallons)
- Electric to electric: $1,000, any size
Conditions on the program page: Water heaters: NEEA Tier III or IV, UEF 2.87 or higher, thermostatic mixing valve, permitted and inspected, installed and submitted by a SMUD Contractor Network contractor (no DIY); Induction: cooktop or range 24 inches or larger (portable units excluded), application within 180 days of purchase; Active SMUD account; subject to funding.
Also on the page: SMUD says its rebate “can be stacked with statewide and federal incentive programs”.
Source: SMUD: Home appliances and electronics rebates. Last checked October 21, 2026. Official program page.
Golden State Rebates heat pump water heater instant rebate Open
Run by Golden State Rebates (supported by PG&E, SoCalGas, SDG&E and SCE) · for customers of 3 utilities
- Up to $900 instant rebate on a heat pump water heater
Conditions on the program page: Instant rebate at participating retailers; The program page names PG&E, SoCalGas, SDG&E and SCE as supporters but does not state eligibility rules; check the retailer listing before buying.
Source: Golden State Rebates. Last checked October 21, 2026. Official program page.
Worked example: one California home
Take one heat pump water heater replacing an electric tank. These are example inputs, not typical prices. Each program's own rule gives the amounts below; where one program has several tiers only the largest one counts, separate programs add up, and a percentage offer with no cost entered is shown at its ceiling.
| Utility | Not income-qualified | Moderate income | Low income |
|---|---|---|---|
| Sacramento Municipal Utility District (SMUD) | $1,000 | $1,000 | $1,000 |
| Pacific Gas and Electric (PG&E) | $900 max | $900 max | $900 max |
| Southern California Edison (SCE) | $900 max | $900 max | $900 max |
| San Diego Gas & Electric (SDG&E) | $900 max | $900 max | $900 max |
For a household that is not income-qualified, the example comes to $1,000, made of $1,000 from SMUD appliances (Electric to electric). None of the open offers has a separate income-qualified amount, so every household gets the same figure. Your utility matters: Sacramento Municipal Utility District (SMUD) customers see $1,000 against $900 for Pacific Gas and Electric (PG&E).
Who can use these California offers
Eligibility follows your electric or gas utility. SMUD appliances is open to SMUD customers; Golden State Rebates is open to PG&E, SCE and SDG&E customers. None of these program pages lists an end date, and each can change or stop while funds last.
Federal credit and state IRA rebates
The Energy Efficient Home Improvement Credit (IRC §25C) paid 30% of cost, up to $2,000 a year (shared with heat pumps). The IRS page says: “can claim the credit for improvements made through December 31, 2025.” Not allowed for property placed in service after December 31, 2025. Source: IRS: Energy Efficient Home Improvement Credit, 26 U.S.C. §25C, as amended by Public Law 119-21 (July 4, 2025). See what the credit covered and when it ended.
California HEEHRA (the state's IRA HEAR program): Closed to new applications. “As of February 24, 2026, HEEHRA single-family rebates are fully reserved for projects statewide.” Multifamily rebates were fully reserved as of September 1, 2026, and “The program is no longer accepting new reservations.” Source: TECH Clean California: HEEHRA rebates.
How California compares
California has the largest stated heat pump water heater amount of the 15 states this site covers. Open elsewhere: Connecticut $1,900; North Carolina $1,750; Massachusetts $1,500; Maine $1,200; Oregon $1,200; Texas $1,000; Vermont $1,000; New Hampshire $900; Rhode Island $625; Arizona $500; Pennsylvania $500; Wisconsin $300. No open, sourced offer is listed in 2 other covered states (Florida, Michigan). Compare them on the heat pump water heater rebates by state page.
Other upgrades in California: air-source heat pump, induction range or cooktop, electrical panel upgrade. Background: how rebates stack and the federal credit status.
Rebates are set by each program and can change or close without notice; the program's own page and application decide what is paid. This page is information, not tax, legal or financial advice. Amounts last checked October 21, 2026.