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.
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.
2026 Rebate Amounts
| Equipment | Standard rebate | Enhanced rebate (LMI / DAC) |
|---|---|---|
| Heat pump water heater | $1,000–$2,000 | $2,500–$4,500 |
| Heat pump HVAC (full replacement) | $3,000–$4,000 | $6,000–$8,000 |
| Panel upgrade (if triggered) | $0–$1,500 add-on | $2,000+ add-on |
Rebate amounts have varied over program phases. Confirm current levels with your contractor.
Stacking with Federal Tax Credits
The federal Inflation Reduction Act (IRA) provides:
- Energy Efficient Home Improvement Credit (25C). Up to $2,000/year for heat pump water heater + HVAC.
- High-Efficiency Electric Home Rebate (HEEHRA). Income-qualified point-of-sale rebates — being administered by the California Energy Commission throughout 2026.
TECH + 25C + HEEHRA can stack. For a middle-income household replacing a gas HVAC with a heat pump: $3,500 TECH + $2,000 federal 25C = $5,500 in combined incentives on a $12,000 install.
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.