Heat pump water heater rebate
Rebates help Solana Beach residential property owners replace gas water heaters with efficient electric heat pump models.
Esta oportunidad está disponible actualmente en inglés.
The City pays $500 towards a qualifying heat pump water heater, or $1,000 for an income-qualified household. If the installation requires an eligible replacement of the main electrical service panel, another $500 is available: up to $1,500 in total for an income-qualified owner. The rebate supports equipment and installation labour, and can be combined with other incentives.
You pay for the work and claim a City rebate check after the permitted installation passes its final inspection. Payment goes to the designated payee; allow 2–6 weeks for the check to be issued after submitting the final documents. The payee receives Form 1099-MISC reporting the rebate.
Eligibility
- You must own a residential property in Solana Beach and provide proof of ownership. The installation must be in an existing building; new construction is excluded. There is a limit of one rebate application per residential unit.
- Replace an existing gas water heater, including a tankless model, with a new, permanently fixed electric heat pump water heater. Choose equipment that is ENERGY STAR qualified and whose specifications meet NEEA Tier 3 Advanced Water Heater Specification or higher, with a Uniform Energy Factor (UEF) of at least 3.0. These are the programme’s required qualification and efficiency ratings for the replacement model.
- The equipment and installation labour must be included in a City Building Permit application submitted on or after 2 January 2026. Use a licensed contractor with a City business certificate who is verified through The Switch is On.
- To claim the income-qualified amount, upload a utility bill showing participation in the CARE or FERA discounted-rate programmes, verification of deed-restricted affordable housing, or your tax returns.
- The extra panel rebate requires installation of the qualifying water heater and replacement of the home’s main electrical service panel. The panel must have capacity for future electrification of all appliances and an electric vehicle charger. Installation must follow the manufacturer’s instructions, California Electrical Code Article 230 and SDG&E rules. A panel project also requires an SDG&E work order.
How to apply
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- First come, first served until funds are exhausted. Funding is reserved only after the City approves the application.
Work with your contractor to submit the City’s Building Services Permit Application, then use the Residential Rebate Application linked from the official programme page. You or your contractor can submit it. Wait for the City’s approval email confirming that rebate funding has been reserved; applications are first come, first served until funds are exhausted.
Submit the City’s Vendor Application and W-9 tax form for the property owner or designated payee, with information matching IRS records. After permits are issued and the heater is installed, your contractor schedules a City inspection.
After passing final inspection, email Nicole Grucky at ngrucky@cosb.org with the subject “HPWH Rebate – Final Docs, [your last name]”. Include the permit number and final-inspection proof, paid equipment and installation invoices with the contractor’s licence number, photos of the installed equipment and make/model label, and the completed W-9.