Residential heat pump heating and cooling rebates
Rebates help SMUD residential customers replace gas heating or upgrade electric heating and cooling with a qualifying heat pump installed by a participating contractor.
A heat pump heats and cools your home by operating like an air conditioner that can run in reverse. SMUD pays $3,000 for a gas-to-electric conversion using a variable-stage system, or $2,000 for a qualifying two-stage system. Upgrading an existing electric system to a qualifying multi-stage heat pump receives $1,000.
Two-stage compressors operate at a lower or higher speed; variable-stage compressors can run at still lower speeds. Single-stage systems are excluded.
The HVAC rebate can be combined with eligible statewide and federal incentives, subject to those programmes’ own criteria and availability.
Eligibility
- You must be a resident or homeowner with an active SMUD account. The home must be individually metered by SMUD. Single-family homes and multifamily homes with up to four units are eligible; each multifamily unit must have its own meter.
- Use a participating installer in the SMUD Contractor Network. The heat pump must have a two-stage or variable-stage compressor and meet the minimum cooling-efficiency rating of 15.2 SEER2. The contractor is responsible for checking the detailed programme requirements and advising you.
- Package, split and mini-split systems are supported. Mini-splits must serve the entire home. The system must satisfy the published Title 24 requirement through HERS CF3R verification, the programme’s building-energy-compliance check, and/or any new ducts must have insulation rated at least R8. A connected thermostat with Wi-Fi and seven-day programming is required.
- The installation must comply with city or county ordinances, building codes and permits, including inspections.
- Manufactured, modular or factory-built homes must also be subject to state and local building codes. Check this with your local building department. Homes on a permanent foundation typically qualify; mobile homes on a chassis and axle, homes built under HUD codes, or homes with a California Community Services Department licensed-mobile-home sticker may not qualify.
How to apply
- Status
- Open continuously
- Round restrictions
- Rebates are subject to available funding and must be submitted by a qualified participating contractor.
Choose a participating contractor through the SMUD Contractor Network and have them install a qualifying electric heat pump. Your contractor supplies the rebate application for your signature and submits it for you. You then receive the rebate. A contractor may instead offer the rebate upfront and collect it from SMUD after completion.
Rebates depend on available funding and must be submitted by a qualified participating contractor.