QUICK ANSWER
California homeowners can stack TECH Clean California rebates, federal HEEHRA rebates (up to $8,000 for heat pumps and $1,750 for heat pump water heaters for qualifying households), and the federal home improvement tax credit (30% back, up to $3,200/year) for combined incentives of $5,000–$12,000+ on major upgrades. These programs are independent and fully stackable: receiving a utility rebate does not reduce your federal tax credit.
California Home Energy Rebates 2026
California homeowners can access multiple layers of energy incentives in 2026: TECH Clean California programs, federal HEEHRA point-of-sale rebates for heat pumps and appliances, and the federal home improvement tax credit. Enerly tracks every available incentive by ZIP code so you never leave money on the table.
Available Programs in California
- TECH Clean California: State and utility rebates for heat pumps, insulation, smart thermostats, and more
- Federal HEEHRA Rebates: Up to $8,000 for heat pumps and $1,750 for heat pump water heaters for income-qualifying households
- Federal Home Improvement Tax Credit: 30% back on heat pumps (up to $2,000), insulation (up to $1,200), windows, and more for all income levels
Top Rebate Categories in California
- Heat pump HVAC systems: Replace gas or electric resistance heating with a high-efficiency heat pump. Most programs stack $500-$2,000 in utility and state rebates on top of the federal home improvement tax credit federal credit, which covers 30% back up to $2,000.
- Heat pump water heaters: Use 3x less electricity than a standard electric tank. Typical savings of $300-$400/year. Federal HEEHRA covers up to $1,750 for qualifying households; The federal credit covers 30% for everyone else.
- Attic insulation and air sealing: The highest-ROI upgrade for most homes built before 2000. Typical payback: 3-5 years. Federal home improvement tax covers 30% of costs up to $1,200.
- Smart thermostats: Reduce HVAC runtime by 10-15%. Most utility programs offer $50-$100 rebates. Pays back in under 2 years. Federal HEEHRA covers up to $250 per thermostat for qualifying households.
How to Claim California Rebates
- Complete a free Enerly home energy audit to see your personalized savings and rebate estimate
- Check TECH Clean California and your local utility for current rebate amounts and eligible products
- Get a quote from a participating contractor (required for most utility and state rebates)
- Submit your rebate application within 90 days of the upgrade installation
- Claim the federal home improvement tax credit on your federal return for additional savings
Cities in California with Local Savings Data
- Los Angeles, California -- energy costs, rebates, and top upgrades
- San Francisco, California -- energy costs, rebates, and top upgrades
- San Jose, California -- energy costs, rebates, and top upgrades
- San Diego, California -- energy costs, rebates, and top upgrades
- Sacramento, California -- energy costs, rebates, and top upgrades
Utility Rebate Programs in California
Frequently Asked Questions
What rebates are available in California for heat pumps?
California homeowners can stack TECH Clean California rebates, federal HEEHRA rebates (up to $8,000 for qualifying households), and the federal home improvement tax credit (up to $2,000) on heat pump installations. Total incentives can exceed $10,000 on qualifying systems when all programs are combined.
Do I need a certified contractor to get California rebates?
Most utility and state rebate programs require installation by a licensed contractor. Some programs require BPI-certified or ENERGY STAR-partner contractors. Your contractor typically handles the rebate paperwork on your behalf once you have confirmed eligibility before installation.
Can I claim rebates and the federal tax credit?
Yes. State and utility rebates are independent of federal tax credits. You can receive a state or utility rebate at point of sale, claim the federal home improvement tax credit on your federal return, and apply for HEEHRA rebates if you qualify by income. These programs do not reduce each other.