CalPeco Electric customers, California · Rebate
Residential Heat Pump Incentive Program (Liberty California)
Run by Liberty Utilities (CalPeco Electric)
Liberty electric customers in the Lake Tahoe area who replace electric heat with an air or ground source heat pump can get per-ton incentives up to $4,000, plus $60 for a smart thermostat installed with it; replacing an electric water heater with a heat pump water heater earns $900.
Amounts
How much you get
Heating/cooling heat pumps are paid per ton by system type and efficiency tier, up to $4,000. The amount depends on which of these fits your install.
| What you install | You get |
|---|---|
| Heat pump water heater replacing electric water heater (>3.3 UEF) | $900 |
| Smart thermostat (with heat pump upgrade) | $60 |
| Per tonTier 1 ductless unit | $150 |
| Per tonTier 1 room unit | $425 |
| Per tonTier 1 ducted heat pump | $300 |
| Per tonTier 2 ductless unit | $400 |
| Per tonTier 2 room unit | $675 |
| Per tonTier 2 ducted heat pump | $800 |
Eligibility
Do I qualify?
You need to meet all 4 of these.
Current Liberty residential customer billed under Residential (Domestic) Service (D1); landlords of Liberty-served rentals also qualify.
Existing single-family, multifamily or mobile home replacing a permanently installed electric heating system with a heat pump, or an electric water heater with a heat pump water heater.
Installed by a California licensed contractor.
What to doHire a California contractor with a General B or C-20 license (heat pump water heaters: B, C-20 or C-36). Get a quote from a contractor
One rebate per system type per service address.
Equipment
What equipment counts
The program sets these minimums for water heaters and heat pumps.
- Heat pump water heaters
UEF greater than 3.3.
- Heat pumps
Tier 1 ductless/room: SEER2 15.2, HSPF2 7.8; ducted: SEER2 15.2, HSPF2 7.7. Tier 2 ductless/room: SEER2 16.9, HSPF2 8.3; ducted: SEER2 16.9, HSPF2 8.1.
Applying
How to apply
You apply online. Equipment must be purchased within 120 days of applying; funding is limited.
- Apply before you buy (recommended).
Liberty encourages applying before purchase; equipment must be bought within 120 days of applying.
- Install with a licensed contractor.
B or C-20 license for heat pumps; B, C-20 or C-36 for heat pump water heaters.
- Submit documents in PowerClerk.
A recent Liberty bill, the purchase receipt, an itemized contractor invoice, and photos of the old and new equipment showing make and model.
Recent Liberty electric bill
Receipt for the new equipment
Itemized contractor invoice
Photos of old and new equipment with legible make/model numbers
Forms and instructionsResidential Heat Pump Incentive Program - Liberty (California)
Questions about applyingCAEnergyEfficiency@LibertyUtilities.com
Stacking
Use it with
Your address
Next steps
Check that it covers your address. Then, if you want, ask for a contractor quote.
Is it available at your address?
Before anything else
Your quote request is in If a contractor we work with serves your ZIP, they can contact you. We take one request per person; contact us to change it.
Get an email if this program changes
We'll write if its amount, status or deadline changes. Nothing else.
FAQ
Questions
How much does Residential Heat Pump Incentive Program (Liberty California) pay?
$60 to $900, depending on what you install. The table under How much you get lists each amount.
Do I need to be a CalPeco Electric customer?
Yes. It’s only for homes in CalPeco Electric customers, California. See Do I qualify for the details.
Do I have to use a contractor?
Yes. Installed by a California licensed contractor.
What’s the deadline?
No fixed deadline. Apply any time while it’s open.
Is it still available?
Yes. It was open when we last checked, on October 27, 2026.
Plain words
Words used on this page
- SEER2 and EER2
- Cooling efficiency ratings on the model’s spec sheet. Higher is better.
- HSPF2
- A heat pump’s heating efficiency rating. Higher is better.
- UEF
- A water heater’s efficiency rating. Higher is better.
References
Sources
This page is built from these official pages, run by the program itself.
When one of these pages changes, we re-check this page against it.
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