SMUD customers, California · Rebate

Heat pump HVAC rebate (SMUD)

Run by Sacramento Municipal Utility District (SMUD)

SMUD pays up to $3,000 when a participating SMUD Contractor Network contractor replaces a gas furnace with a variable-stage heat pump ($2,000 for a two-stage system), or $1,000 to replace an existing electric system with a multi-stage heat pump. The contractor submits the rebate.

Open Checked Oct 27, 2026

Amounts

How much you get

$3,000 for a variable-stage heat pump replacing gas heating, $2,000 for a two-stage (15.2 SEER2 minimum) heat pump replacing gas heating, and $1,000 for a two-stage or variable-stage heat pump replacing an existing electric system. The amount depends on which of these fits your install.

What you installYou get
Gas to electricVariable-stage heat pump$3,000
Gas to electricTwo-stage heat pump (15.2 SEER2 minimum)$2,000
Electric to electricMulti-stage heat pump$1,000

Eligibility

Do I qualify?

You need to meet all 5 of these.

  • The resident or homeowner must be a SMUD customer with an active SMUD account, and the home must be individually metered by SMUD.

  • Single-family homes and buildings of up to 4 units (each unit individually metered). Manufactured, modular or factory-built homes qualify only if subject to state and local building codes; HUD-code mobile homes on a chassis may not qualify.

  • The system must be installed by a participating contractor in the SMUD Contractor Network, who submits the rebate.

    What to doPick a contractor from the SMUD Contractor Network at smudcontractornetwork.org. Heating and cooling rebates - SMUD Get a quote from a contractor

  • Two-stage or variable-stage heat pump (package, split or whole-home mini-split), at least 15.2 SEER2, with a connected Wi-Fi 7-day programmable thermostat. Single-stage systems don't qualify.

  • The project must be permitted, pass inspections and pass Title 24 via HERS CF3R; new ductwork must be insulated to R8 or more.

    What to doYour participating contractor pulls the permit and arranges HERS testing.

Equipment

What equipment counts

The program sets these minimums for heat pumps.

  • Heat pumps

    Variable-stage or 2-stage compressor, at least 15.2 SEER2.

  • Heat pumps

    Connected thermostat (Wi-Fi enabled, 7-day programmable); mini-splits must serve the entire home.

Applying

How to apply

Your contractor applies for you. Rebates are subject to availability of funding.

  1. Choose a participating contractor.

    Pick a contractor from the SMUD Contractor Network.

  2. Install a qualifying heat pump.

    The contractor installs a two-stage or variable-stage heat pump HVAC system, with permit and HERS testing.

  3. Sign the rebate application.

    The contractor gives you the application to sign and submits it to SMUD. Some contractors take the rebate off the price up front.

  4. Receive the rebate.

    SMUD typically pays within 2 weeks of approving the final paperwork, to you or the contractor.

Forms and instructionsHeating and cooling rebates - SMUD · Home Performance Program - SMUD

Questions about applying1-916-732-5732 or AdvancedHomeSolutions@smud.org

Stacking

Use it with

SMUD says its heat pump HVAC rebates can be stacked with statewide and federal incentive programs; the Go Electric panel and circuit rebates are paid on top when gas heating is replaced.

  • SMUD customers, California

    Go Electric bonus rebates for panel and circuits (SMUD)

    Up to $2,000 back

    After replacing a gas furnace or gas water heater with a heat pump through SMUD, homeowners can get up to $2,000 more for a panel upgrade and new circuits for an EV charger, range and dryer ($500 per circuit, $500 for a subpanel). A SMUD Contractor Network contractor submits the rebate.

    Checked Oct 27, 2026

  • SMUD customers, California

    Seal and insulate rebates, Home Performance Program (SMUD)

    Up to $3,000 back

    SMUD's Home Performance Program pays up to $3,000 for air sealing, attic insulation and new sealed ductwork done by a Home Performance Program contractor. Duplexes to fourplexes get 50% of the full rebate per unit.

    Checked Oct 27, 2026

Your address

Next steps

Check that it covers your address. Then, if you want, ask for a contractor quote.

FAQ

Questions

How much does Heat pump HVAC rebate (SMUD) pay?

$1,000 to $3,000, depending on what you install. The table under How much you get lists each amount.

Do I need to be a SMUD customer?

Yes. It’s only for homes in SMUD customers, California. See Do I qualify for the details.

Do I have to use a contractor?

Yes. The system must be installed by a participating contractor in the SMUD Contractor Network, who submits the rebate.

What’s the deadline?

No fixed deadline. Apply any time while it’s open.

Can I combine it with other rebates?

Yes, with Go Electric bonus rebates for panel and circuits (SMUD) and Seal and insulate rebates, Home Performance Program (SMUD). See Use it with.

Is it still available?

Yes. It was open when we last checked, on October 27, 2026.

Do I have to do all my upgrades at once?

No. You can do a Home Performance Program project in phases as long as the whole project is finished within five years of the first application.

Who gets the rebate check?

You or your contractor. Confirm with the contractor before the project starts; payees must be a SMUD account holder or a SMUD-verified contractor.

Plain words

Words used on this page

SEER2 and EER2
Cooling efficiency ratings on the model’s spec sheet. Higher is better.
Individually metered
Your home has its own utility meter, not one shared with other homes in the building.

References

Sources

This page is built from these official pages, run by the program itself.

  1. Heating and cooling rebates - SMUDsmud.org · Read Oct 27, 2026 · Re-checked weekly
  2. Home Performance Program - SMUDsmud.org · Read Oct 27, 2026 · Re-checked weekly

When one of these pages changes, we re-check this page against it.

Report a problem with this page

Nearby

More in California

  • All of California

    Equitable Building Decarbonization Direct Install Program (no-cost home electrification)

    Work done at no cost

    The CEC's Equitable Building Decarbonization Direct Install Program installs heat pumps, heat pump water heaters and other electric and efficiency upgrades at no cost for low-income households (up to 80% of area median income) in selected under-resourced communities. Owners and renters in the initial focus areas apply through their regional administrator.

    Checked Oct 27, 2026

  • All of California

    GoGreen Home Energy Financing (CAEATFA)

    Up to $150,000 of work at no cost

    GoGreen Home connects California homeowners and renters with credit unions offering lower-rate, lien-free loans for heat pumps, solar plus storage and other energy upgrades. In Priority Populations areas, borrowers with income up to $150,000 can get 0% APR for up to 10 years on heat pump projects up to $30,000.

    Checked Oct 27, 2026

  • Parts of California

    0% Interest Home Upgrade Loan (WestLight Energy)

    Up to $10,000

    WestLight Energy homeowners in San Mateo County and Los Banos can borrow up to $10,000 at 0% interest, with no fees, no credit check and 2 to 5 years to repay on their electric bill, for heat pump water heaters, heat pump HVAC and panel upgrades by an approved contractor.

    Checked Oct 27, 2026