SMUD Heat Pump HVAC Rebates
Accepting applications Checked today
Applications are open and being funded.
Open. SMUD raised heat pump rebates in February 2026; rebates are subject to availability of funding and no waitlist or closure notice is published.
- Administrator
- Sacramento Municipal Utility District
- Administrator type
- municipal utility
- State
- California
- Who is covered
- Only customers in this administrator’s service territory — being in the state is not enough. (Sacramento Municipal Utility District electric customers)
- Income restricted
- Not as a blanket rule
- Source page last fetched
- 2026-09-21
- Last change seen
- None recorded
- Contents read by a person
- 2026-09-21
Conditions worth knowing
- The amount depends on what you are replacing and how good the compressor is: a variable-stage heat pump replacing gas heating earns $3,000, a two-stage system of at least 15.2 SEER2 earns $2,000, and an electric-to-electric upgrade to either type earns $1,000. Single-stage systems are not eligible.
- SMUD raised these rebates in February 2026, saying it was offsetting the end of the federal tax credits and of state incentive programs, which it said had run out of funding.
- A contractor in the SMUD Contractor Network applies on your behalf, and may take the rebate off the price up front and claim it from SMUD afterwards. Rebates are subject to availability of funding.
- SMUD says its heat pump rebates can be combined with statewide and federal incentives that are available, and points to the Switch Is On incentive lookup for them. The federal tax credit for heat pumps no longer applies to installations after December 31, 2025.
- The $2,000 go electric bonus is a separate payment for the wiring that lets a home run without gas, and it requires a gas furnace or gas water heater to be replaced with a qualifying heat pump.
Incentive amounts
| Technology | Amount | Requirements |
|---|---|---|
| Variable-stage heat pump HVAC, replacing gas heating | $3,000 | Variable-stage heat pump HVAC system; Gas-to-electric conversion; Installed by a participating contractor in the SMUD Contractor Network |
| Two-stage heat pump HVAC, replacing gas heating | $2,000 | Two-stage system, 15.2 SEER2 minimum; Gas-to-electric conversion; Installed by a participating contractor in the SMUD Contractor Network |
| Multi-stage heat pump HVAC, replacing electric heating | $1,000 | Two-stage or variable-stage system; Electric-to-electric upgrade; Installed by a participating contractor in the SMUD Contractor Network |
| Go electric bonus | Up to $2,000 | Requires replacing a gas furnace or gas water heater with a qualifying heat pump; Up to $500 for each eligible circuit (dryer, cooktop or range, EV charger), up to $2,000 in total; Up to $500 for a sub-panel if more panel space is needed; Home must be all-electric ready, with the panel and all eligible circuits |
Source
https://www.smud.org/Rebates-and-Savings-Tips/Rebates-for-My-Home/Heating-and-Cooling-Rebates
www.smud.org decides eligibility and amounts. If their page differs from this one, theirs is right. How we check