Energy efficiency rebates in California.
Every federal, state, and utility incentive for heat pumps, insulation, air sealing, and weatherization in California — cross-referenced and kept current.
Tell us about your project. We'll match you with local pros and every rebate you qualify for.
California Energy Commission
- Type
- State Agency
- Website
- www.energy.ca.gov
- IRA allocation
- $581M
Active rebate programs
4 programs currently accepting applications in California.
| Program | Amount | Eligibility | Status |
|---|---|---|---|
| TECH Clean California Heat Pump (single-family) | Fully reserved | Waitlist only — SF heat pump HVAC/HPWH incentives fully reserved since Nov 14, 2025; installs only eligible after reservation approval | Closed |
| SMUD Heat Pump HVAC Rebates | $1,000–$3,000 (+$2,000 Go Electric panel bonus) | SMUD (Sacramento) customers; gas-to-electric conversion variable-stage $3,000 / two-stage $2,000, electric-to-electric $1,000; via SMUD Contractor Network, subject to funding | Active |
| LADWP Consumer Rebate Program | Up to $2,500/ton heat pump HVAC; up to $2,500 HPWH | LADWP residential customers; equipment installed on/after Nov 1, 2025; apply within 12 months of purchase; no attic insulation rebate | Active |
| BayREN BAMBE (multifamily) | $500/unit base + electrification adders (HPWH/HP HVAC $1,500/apt) | Bay Area multifamily property owners (5+ units); reopened to new applicants, first-come-first-served — $5.9M unreserved as of 7/1/26 | Active |
| Energy Savings Assistance Program | No-cost weatherization | Income-qualified (200% FPL), IOU customers | Active |
| SoCalGas HEER (gas appliances) Deadline soon | $80–$1,500 tankless / $300–$575 storage water heater | SoCalGas customers; gas equipment only (no HPWH, no insulation); first-come-first-served through Dec 31, 2026 or until funds exhausted | Expiring |
Run the numbers for California.
Free, no account needed. Every figure is cited, so you have a benchmark before a California contractor quotes you one.
IRA implementation status
How California is implementing the Inflation Reduction Act home energy rebates.
Metro areas in California
Local utility programs and municipal incentives by metro area.
SCE and LADWP territories, SoCalREN
PG&E territory, BayREN BAMBE (multifamily; Home+ single-family discontinued Oct 2024)
SDG&E territory; City of San Diego HEART program closed (full capacity Oct 7, 2025)
SMUD (municipal utility), strong efficiency programs
Rebates are step one
Once you know what California pays, here's the rest of the path: what order to do the work in, and what belongs on a fair quote.
What order to do it in
Envelope first, equipment second — how to sequence a retrofit to your budget and your rebates' deadlines.
How to read a quote
What belongs on a heat pump or insulation quote, and the red flags that mean keep shopping.
What attic insulation costs
Per-square-foot prices by material, and why this is the work rebate programs subsidize hardest.
Claim rebates after install
The document kit, the application walkthrough, and the mistakes that get claims rejected.
Rebates cover part of it. Here's the rest.
What California pays is the first rung. These cover the money questions underneath it: the 2026 federal rules, the state and utility loan programs worth checking before a bank, and the borrowing routes that come after.
How to pay for it
The whole money picture in order of cost: rebates first, then low-interest loans, then borrowing.
State energy loans
The state and utility loan programs we have verified at the administrator, with rates and conditions.
The 2026 rebate rules
What DOE Program Notices 26-1 and 26-2 changed about HEAR and HOMES, and which states are live.
Latest California energy news
Recent California rebate, policy, and efficiency coverage from our monitored sources.
California SB 690 Limits Website Privacy Lawsuits Against HVAC Contractors
California has changed a law that affects HVAC companies, not homeowners directly, but it's worth knowing about if you've hired or are researching contractors in the state. Governor Gavin Newsom signed SB 690, which limits lawsuits under the California Invasion of Privacy Act (CIPA), a law originally written to criminalize wiretapping but later stretched to cover website tracking tools like chat boxes, Google Analytics, and Meta Pixel. Businesses, including small HVAC contractors, had been hit with lawsuits claiming these common website features violated customer privacy, with fines sought per website visit rather than per visitor. The new law removes the ability of individuals to sue over this specific type of claim (called pen-register and trap-and-trace violations). Instead, only the state Attorney General can pursue these cases. The change takes effect January 1, 2027, and also applies to similar lawsuits already filed in the two years before that date. It does not affect other parts of the privacy law, such as rules around wiretapping and intercepted communications, so some lawsuit risk remains for businesses. For homeowners, this mainly means fewer frivolous lawsuits distracting or draining smaller HVAC contractors, which could help keep service costs and availability more stable. It doesn't change anything about how your own data is collected when you visit a contractor's website, and it has no connection to equipment rebates, energy upgrades, or installation costs.
California cities face months of delays in building code approvals
A California law called AB130, passed to speed up affordable housing, has also put a years-long freeze on local building code updates. The law allows some exceptions for cities and counties that want to adopt stronger energy rules tied to their existing climate plans, known as "reach codes." These local rules go beyond state efficiency standards, often by encouraging homeowners to replace a broken air conditioner with a heat pump, a system that both heats and cools, instead of installing another one-way AC. Since the freeze began in October 2025, 21 cities and counties have passed these reach codes, but 17 of them, from places including Alameda, Glendale, Marin County, Palo Alto, and San Luis Obispo, are still waiting on approval from the state's Building Standards Commission. Some have waited nearly a year, far longer than the days such reviews used to take. The commission says the stalled ordinances have more complex provisions and it hopes to issue decisions soon. Local officials say the delay is blocking efforts to cut pollution from gas appliances and slowing other cities from even starting the process. If you live in one of these places, this means any extra incentives or requirements your city planned to roll out for heat pumps or other electrified upgrades may be on hold. It does not affect state-level rebate programs or existing incentives, but it's worth checking with your own city or county to see whether a local reach code is still pending before you plan upgrade timing around it.
California governor signs bills approving virtual power plants
California Gov. Gavin Newsom has signed two laws, SB 913 and SB 905, meant to use home batteries and other equipment to hold down electricity bills instead of having utilities spend more on new infrastructure. More than 300,000 California homes already have solar-charged batteries, with about 2,000 more added each week. These laws aim to turn that equipment into a "virtual power plant," a network of home batteries and devices that utilities can draw on together during peak demand, in place of building new power lines or plants. SB 913 removes restrictions that kept home batteries from fully competing in the wholesale energy market. It directs state regulators to figure out how to value batteries that send power back to the grid during times of high demand, so homeowners with batteries can get credit for the full amount of energy their systems can supply, not just the energy they save for themselves. SB 905 requires utilities to track and report how much spare capacity exists on each part of the grid, so money isn't spent expanding lines that sit mostly unused. It also opens the door for batteries, electric vehicle chargers, and smart thermostats to help shift electricity use to cheaper, off-peak hours. Neither law changes anything immediately. The real effect on bills depends on how state regulators implement the rules over the next year or so, including a June 2027 deadline for improving how aggregated home batteries qualify for grid reliability programs. If you already have a solar battery, or are considering one, these changes could eventually make it easier to earn value by letting your battery supply power to the grid when it's needed most.
Ready to see what you qualify for in California?
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California: up to $4,000 back right now
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