California HVAC Rebates in 2026: TECH Clean California, HEEHRA & Federal Credits Explained

Update (September 2026): The federal 25C tax credit ended for installations completed after December 31, 2025 and can no longer be claimed on a new project. HEEHRA’s income-qualified single-family funding is fully reserved statewide — we can add eligible households to a waitlist and apply it automatically if funds return. TECH Clean California’s rebate funding is also exhausted statewide. Utility programs below are still active. We check every rebate and incentive a project qualifies for at the free estimate, and we monitor every program for new funding waves.

California has been paying homeowners to switch from gas equipment to efficient electric heat pumps — but the programs have confusing names, different rules, and funding that comes and goes. Here’s the plain-English guide we walk our San Jose customers through, with the current status of each program.

TECH Clean California — currently out of funding

TECH Clean California offered contractor-applied incentives on qualifying heat pumps and heat pump water heaters, taken directly off your invoice. The program’s funding is used up statewide and new applications aren’t being accepted.

Two things worth knowing: funding has historically returned in waves, and the program’s pause doesn’t affect anything else on this list. As a TECH-enrolled contractor we get notified when funding reopens — if it does, eligible quotes get the rebate applied automatically, no action needed on your side.

Federal 25C tax credit — expired for installs after 2025

The federal Energy Efficient Home Improvement Credit (25C) used to give homeowners back 30% of the installed cost, up to $2,000 per year, for a qualifying heat pump or heat pump water heater. That credit ended for installations completed after December 31, 2025 — it is no longer available for a 2026 project, and we can’t apply it to your quote.

If you installed qualifying equipment before the end of 2025, the credit still applies to that tax year; talk to your tax preparer about documentation. For anything installed from here forward, the savings now come from live utility programs and financing, which we walk through below.

HEEHRA — fully reserved statewide, waitlist available

The Home Electrification and Appliance Rebate program (HEEHRA) offers point-of-sale discounts on heat pumps for income-qualified households. As of early 2026, HEEHRA’s single-family funding is fully reserved statewide — new point-of-sale discounts aren’t available right now. We can add income-qualified households to a waitlist and apply the rebate to the project automatically if funds return.

Utility & regional extras (varies)

PG&E, Silicon Valley Clean Energy, and San José Clean Energy periodically offer additional incentives — duct sealing, smart thermostats, panel upgrades. These come and go; we track what’s live so your quote reflects everything you can claim.

What this means for your project in 2026

With 25C expired and HEEHRA reserved, the utility programs above are the incentives actually available today — and they change often enough that it’s worth checking at the time of your estimate rather than assuming what applied last year still does. On top of whatever’s live, financing spreads the rest into a monthly payment, often close to what the energy savings cover.

Bottom line: never price a heat pump off last year’s incentives. Get an instant range with our online estimator or call (669) 777-1997 and we’ll check every rebate and incentive your project qualifies for today.