HVAC Rebates and Incentives in California (2024-2025)

California offers substantial incentives for efficient HVAC equipment. Taking advantage of these can significantly reduce your costs.

Federal Tax Credits (Available Nationwide)

Heat Pumps Up to $2,000 tax credit for qualified heat pump systems through 2032.

High-Efficiency AC and Furnaces Up to $600 for central AC meeting efficiency requirements.

Requirements - Must meet specified efficiency standards - Primary residence only - Proper installation required

California State Programs

TECH Clean California Incentives for heat pump adoption: - Up to $1,000 for heat pump water heaters - Up to $3,000+ for heat pump HVAC in some cases - Additional incentives for low-income households

Self-Generation Incentive Program (SGIP) Provides rebates for battery storage, which pairs well with heat pumps and solar.

Utility Rebates (PG&E Territory)

Current Programs Programs change frequently, but typically include: - Heat pump incentives - High-efficiency gas furnace rebates - Smart thermostat rebates - Air sealing incentives

How to Check Visit PG&E's rebates page for current offerings. Programs have funding limits and may change.

BayREN Programs

The Bay Area Regional Energy Network offers: - Home+ program for comprehensive upgrades - Single-family and multifamily programs - Rebates stackable with utility programs

Maximizing Your Rebates

Plan Ahead - Research available rebates before purchasing - Some require pre-approval - Understand requirements and deadlines

Stack Programs Federal tax credits can combine with state and utility rebates. You might get: - $2,000 federal credit - $1,000+ utility rebate - $500+ state incentive

Keep Documentation - Original receipts - Contractor invoices - Equipment specifications - Permit documentation

Working with Contractors

Ask About Rebate Experience Good contractors know the rebate landscape and can: - Recommend qualifying equipment - Handle paperwork - Ensure proper installation for compliance

Verify Qualifications Some programs require: - Specific contractor certifications - Particular installation practices - Documentation and permits

Common Pitfalls

Missing Deadlines Rebate programs have funding cycles. Apply promptly.

Not Meeting Requirements Equipment must meet specific efficiency levels. Verify before purchasing.

Incomplete Applications Missing documentation delays or voids rebates.

Resources

• Energy.gov (federal credits)
• California Energy Commission
• PG&E rebates portal
• BayREN programs
• TECH Clean California