SMUD Heat Pump Water Heater 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
- For a gas-to-electric conversion the rebate grows with the tank: $3,000 from 50 gallons, $3,500 from 65 gallons and $4,000 from 80 gallons. An electric-to-electric upgrade is $1,000 at any size.
- The unit must meet NEEA Tier III or IV requirements for climate zone 12, with a uniform energy factor of 2.87 or higher, and the installation must include a thermostatic mixing valve.
- The project must be permitted and pass inspection, and the home must be individually metered by SMUD. Buildings of up to four units qualify if each unit is individually metered.
- A contractor in the SMUD Contractor Network applies for you, and may take the rebate off the price up front. Rebates are subject to availability of funding.
- SMUD says these rebates can be combined with statewide and federal incentives, including TECH Clean California, while funding is available. The federal tax credit for water heaters applied only to installations up to December 31, 2025.
Incentive amounts
| Technology | Amount | Requirements |
|---|---|---|
| Gas-to-electric, 50 gallons or larger | $3,000 | Replaces a gas water heater; Tank of at least 50 gallons |
| Gas-to-electric, 65 gallons or larger | $3,500 | Replaces a gas water heater; Tank of at least 65 gallons |
| Gas-to-electric, 80 gallons or larger | $4,000 | Replaces a gas water heater; Tank of at least 80 gallons |
| Electric-to-electric, any size | $1,000 | Replaces an electric water heater |
| 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; Home must be all-electric ready, with the panel and all eligible circuits |
Source
www.smud.org decides eligibility and amounts. If their page differs from this one, theirs is right. How we check