For most Sacramento-area homes, the only heat pump rebate still open is SMUD’s, which pays $1,000 to $3,000 on qualifying systems. TECH Clean California and the federal HEEHRA rebates are closed, the federal 25C tax credit ended with 2025, and neither Roseville Electric nor PG&E lists a single-family heat pump rebate.
Tule Sacramento Heat Pump installs ducted heat pumps across Sacramento, Placer, Yolo and El Dorado Hills, with the work carried out by licensed and insured contractors, and keeps this status list so budgets start from what is actually available. Incentives change; each one below is confirmed per project before it goes into a quote.
Program status at a glance
| Program | Who ran it | Status | What it offered |
|---|---|---|---|
| SMUD heat pump HVAC rebate | SMUD | Open, subject to funding | $3,000 variable-stage or $2,000 two-stage gas-to-electric; $1,000 electric-to-electric |
| SMUD Go Electric | SMUD | Open, subject to funding | Panel, subpanel and circuit rebates on gas-to-electric projects |
| TECH Clean California | California Public Utilities Commission program | Closed | Contractor-delivered incentives in investor-owned utility areas; reservations ended November 14, 2025 |
| HEEHRA (federal IRA rebates) | California Energy Commission, delivered through TECH | Closed | Up to $8,000 for households under 80% of area median income, up to $4,000 at 80% to 150% |
| HOMES (federal whole-home rebates) | California Energy Commission | Not launched | The CEC is exploring how to fold it into existing programs |
| Federal 25C tax credit | IRS | Ended | 30% up to $2,000 a year for systems placed in service 2023 through 2025 |
| Roseville Electric heat pump rebate | City of Roseville | Not offered | Older program archived; nothing current on the rebates page |
| PG&E single-family heat pump rebate | PG&E | None found | Rate option instead (E-ELEC) |
The statewide programs that closed
Most of the money that once stacked on a heat pump came from two state-run channels, and both stopped taking new projects.
TECH Clean California
TECH paid contractor-delivered incentives on heat pump HVAC and heat pump water heaters in investor-owned utility territory, which in this region meant homes with PG&E electric service. Its official notice, dated November 12, 2025, set November 14, 2025 as the last day to make sales and reserve incentives.
HEEHRA
The federally funded Home Electrification and Appliance Rebates reached income-qualified owner-occupants, and landlords whose residents qualify, through TECH-certified contractors. Single-family funds reached full reservation statewide on February 24, 2026, with a Northern California waitlist. The CEC later reported Phase I fully reserved by August 31, 2026 and says Phase II, roughly $152 million, will be announced at a later date.
HOMES
The second federal program, for whole-home energy savings, has not launched in California. The Energy Commission says it is exploring ways to integrate it with existing programs.
The federal tax credit
The IRS Energy Efficient Home Improvement Credit, section 25C, paid 30% of a qualifying heat pump’s cost, up to $2,000 a year, for property placed in service from January 1, 2023 through December 31, 2025. It does not apply to equipment placed in service after that. The residential clean energy credit, 25D, covers other technologies but not air-source heat pumps. SMUD’s own pages describe the same cutoff. The IRS credit page has the official wording.
What each electric utility offers
Across the region, the incentive story changes at utility lines, and three electric utilities meet inside the metro. PG&E supplies gas everywhere.
| Electric utility | Areas | Heat pump incentive |
|---|---|---|
| SMUD | Sacramento, Elk Grove, Folsom, Citrus Heights, Rancho Cordova, Galt, Carmichael, Fair Oaks, Arden-Arcade, Orangevale, North Highlands | Open rebate plus Go Electric |
| Roseville Electric | Roseville | None currently listed |
| PG&E (with Valley Clean Energy in Davis and Woodland; Pioneer Community Energy in Placer cities and El Dorado Hills) | West Sacramento, Davis, Woodland, Rocklin, Lincoln, Loomis, Granite Bay, Auburn, El Dorado Hills | No single-family heat pump rebate found |
SMUD
SMUD’s rebate is the one substantial incentive left, and the SMUD rebate guide covers it in full. It requires qualifying equipment installed by a participating contractor in the SMUD Contractor Network, and rebate-qualified installations are available on request.
Roseville Electric
The City’s residential rebates page lists EV programs, PowerFlex, Home Energy Reports and solar, but no heat pump HVAC rebate. An earlier heat pump program appears only on archived pages. Roseville Electric can be reached at (916) 797-6937 to confirm. See the Roseville service area page for the rest of the local picture.
PG&E and the community choice agencies
No current PG&E single-family heat pump rebate was found. Davis and Woodland customers get their generation from Valley Clean Energy, and the Placer County cities and El Dorado Hills from Pioneer Community Energy; it is worth checking those agencies directly for any program. The Davis and West Sacramento pages cover PG&E-area projects.
Income-qualified help that remains
There is no income-qualified heat pump replacement program on record for the area today, but some bill and energy help exists.
- SMUD Energy Assistance Program Rate. A monthly bill discount for income-qualified SMUD customers.
- SMUD Energy Saver Bundle. A no-cost in-home energy evaluation.
- HEAP through Community Resource Project. Bill assistance for income-eligible Sacramento County residents, reachable at 916-567-5200; whether its weatherization work extends to heat pump HVAC is not confirmed.
The City of Sacramento’s Home Energy Equity Pilot, which installed 22 heat pump HVAC systems in 2023 and 2024, has ended.
Watch for rebate scams
The California Energy Commission warns that scams are offering federal heat pump rebates, and states plainly that federal, IRA-funded HEEHRA rebates are not currently available to Californians. A caller or ad promising one should be treated with suspicion. Retail instant-discount programs such as Golden State Rebates are aimed at products bought in stores, and no installed heat pump HVAC offer was found there.
If no rebate applies
Outside SMUD, a budget should assume the full installed price. Three things still change the long-run cost.
The electric rate
In PG&E territory, a home with a heat pump as its primary heating and cooling qualifies for the E-ELEC rate, which prices winter electricity below the default E-TOU-C plan. The electric bill guide runs the numbers.
The design
Where winter electricity is expensive, a dual fuel heat pump that keeps a newer furnace for the coldest mornings can make more sense than a full conversion.
The permit fee
State law (SB 222) caps the permit fee for a residential heat pump HVAC system at $200 unless a city or county adopts written findings. It is not a rebate, but it limits one cost line.
The cost side is in the conversion cost guide and the Sacramento cost guide. If you are wondering whether a rule will force the switch anyway, the California gas furnace rules guide separates adopted rules from proposals. For a quote that shows the right incentive for your address, call (916) 516-1454 or request an estimate.
