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 Legislature Passes Heat Pump Permitting Bill
California lawmakers have passed a bill meant to make it faster and cheaper to install heat pumps in existing homes. Senate Bill 222, the Heat Pump Access Act, would set a standard permitting process across the state's roughly 600 local jurisdictions, replacing the current patchwork of rules, fees, and inspection requirements that can slow down installations and add to their cost. The bill passed both chambers of the legislature and now goes to Governor Gavin Newsom, who has until September 30 to sign or veto it. If signed, the law would require local governments to offer automated permitting for standard heat pump jobs, issue a single permit instead of multiple approvals, cap and clarify permit fees, and post permitting rules online. Starting July 2027, jurisdictions would have to allow inspections that don't require the contractor and inspector on site at the same time. By July 2028, they'd need a fully automated online system that issues permits in real time when requirements are met. The bill also limits how much homeowners associations can restrict heat pump HVAC systems and heat pump water heaters. It does not apply to new construction, only upgrades to existing homes. Supporters point to data suggesting homeowners save an average of $304 a year by switching to a heat pump for heating and cooling, and $97 a year with a heat pump water heater. They also cite a survey finding over 90% of heat pump owners are satisfied with their systems. If you're considering a heat pump for your own house, this bill could eventually mean less paperwork and a quicker permitting process, though the timeline depends on how fast your local government adopts the new rules.
California bill enables remote inspection for residential solar, batteries, heat pumps and more
California lawmakers have passed AB 1738, a bill that would let homeowners and contractors request remote video inspections for several home upgrade projects instead of waiting for a city inspector to show up in person. It covers solar panels, home battery storage, heat pump heating and cooling systems, heat pump water heaters, and new roofs. Local governments still run the inspection programs and can still require someone to visit in person if a project raises safety concerns. The bill passed with strong bipartisan support and now awaits Governor Newsom's signature; he has until September 30 to sign it. The change is meant to cut the wait times that add cost to these projects. One analysis found contractors often wait two to six hours for an inspector to check work that takes about fifteen minutes to review, adding roughly $600 to $1,000 to the cost of a typical project. Statewide, the shift to remote inspections is expected to save California families more than $500 million over the next three years. Remote inspections already exist in at least 19 California places, including Los Angeles County, San Diego, Santa Barbara, and Berkeley, where a large share of checks for things like water heaters and solar batteries are already done this way, without reported safety problems. If Newsom signs AB 1738, California would become the first state to guarantee homeowners this option statewide, which could make it faster and cheaper to add solar, a battery, or a heat pump to your own house.
California virtual power plant bills clear key legislative hurdle
Two bills moving through the California legislature could change how home batteries, EV chargers, and smart thermostats get used and paid for on the grid. Lawmakers must vote by August 31, and Governor Newsom would then have until the end of September to sign or veto them. Last year he vetoed similar bills, so it's not clear he'll act differently this time. The bills aim to bundle household devices like solar batteries into what's called a virtual power plant, a network of home energy devices the grid can draw on together during high-demand periods. Senate Bill 913 would set rules letting these home devices count toward "resource adequacy," the backup power utilities are required to line up for peak demand, and could make it more worthwhile financially for battery owners to send power back to the grid. Senate Bill 905 would push utilities to use existing home devices more efficiently before spending billions on new grid infrastructure, which could ease pressure on electric rates. If you have a home battery, smart thermostat, or EV charger in California, this could eventually affect whether you get paid for letting the grid tap your device during peak hours. One existing program, Demand Side Grid Support, already pays hundreds of thousands of California households with batteries and smart devices for this kind of participation, but it faces a state funding cut that could shut it down next year. Supporters of the new bills also want that program extended so current participants aren't left without compensation while new rules are worked out.
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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