TECH Clean California: Heat Pump Rebate Program (2026)
TECH Clean California is the state's main incentive program for replacing gas heating with electric heat pumps. Rebates stack with federal tax credits and solar — here's how it all fits together.
If your quote counts on an incentive, start with which solar incentives remain in California.
What Is TECH Clean California?
TECH Clean California is a $200M+ statewide initiative administered by the CPUC and implemented through participating contractors. It pays rebates for replacing natural-gas water heaters and HVAC systems with electric heat-pump equivalents, on a point-of-sale basis.
From the program's own site: TECH Clean California is administered and implemented by Energy Solutions through a contract with Southern California Edison, under the CPUC, and reports more than $221 million in incentives paid and more than 81,000 units installed. The CPUC says TECH was created as a result of SB 1477 (Stern, 2018) and that it oversees the program (CPUC, Building Decarbonization; TECH Clean California, checked September 24, 2026).
Funding is tight. The program says its single-family heat pump water heater and HVAC incentives were “nearly reserved statewide” as of November 14, 2025, and that HEEHRA single-family rebates were fully reserved statewide as of February 24, 2026, with new reservations waitlisted (TECH Clean California, Single-Family Incentives, checked September 24, 2026). Ask your contractor what is still available before you count on a rebate.
2026 Rebate Amounts
| Equipment | Standard rebate | Enhanced rebate (LMI / DAC) |
|---|---|---|
| Heat pump water heater | See current program table | See current program table |
| Heat pump HVAC (full replacement) | See current program table | See current program table |
| Panel upgrade (if triggered) | Ask the contractor | Ask the contractor |
Rebate amounts have varied over program phases and by territory, so this page does not list them. Confirm current levels on the TECH Clean California site and with your contractor.
Stacking with Federal Tax Credits
What the federal Inflation Reduction Act (IRA) left behind:
- Energy Efficient Home Improvement Credit (25C) — gone. It paid up to $2,000/year for a heat pump water heater + HVAC, but Public Law 119-21 § 70505 terminated it for property placed in service after December 31, 2025. A 2026 install claims nothing under 25C.
- High-Efficiency Electric Home Rebate (HEEHRA). Income-qualified point-of-sale rebates — being administered by the California Energy Commission throughout 2026.
The old TECH + 25C + HEEHRA stack no longer includes 25C, which applied only to property placed in service through 2025. Confirm the current TECH amount, and whether funds remain, with your contractor before you count on it.
How TECH Clean California Pairs with Solar
Heat pumps run on electricity. Pairing with solar turns the operating cost question from “how much will this new electric load cost me” into “how much more solar do I need to size?” Rough numbers for California:
- Heat pump water heater adds ~1,500–2,500 kWh/year.
- Heat pump HVAC adds ~3,000–6,000 kWh/year (bigger homes, more usage).
- Total electrification (both) = ~4,500–8,500 kWh/year added.
- A 3–5 kW solar additions covers the new load in most California climates.
If you're planning solar anyway, factor future electrification into your solar sizing now — it's cheaper to over-size by 3 kW upfront than to add panels in 3 years.
Eligibility
- Residential single-family and multi-family homes.
- Customers of PG&E, SCE, SDG&E, SoCalGas, SMUD, LADWP, and most other California utilities.
- New and existing construction.
- Must use a TECH-participating contractor.
How to Apply
- Find a participating contractor through the TECH Clean California directory.
- Get a quote that includes the TECH rebate application.
- The contractor files the application; you see the rebate deducted from your install invoice.
- Keep all receipts for your federal 25C credit tax filing.
Related Reading
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