SMUD customers, California · Rebate
Heat pump water heater rebate (SMUD)
Run by Sacramento Municipal Utility District (SMUD)
SMUD pays $3,000 to $4,000 (by tank size) when a SMUD Contractor Network contractor replaces a gas water heater with a NEEA Tier III or IV heat pump water heater, or $1,000 to replace an electric water heater. The contractor submits the rebate.
Amounts
How much you get
Gas to electric: $3,000 for 50 gallons or more, $3,500 for 65 gallons or more, $4,000 for 80 gallons or more. The amount depends on which of these fits your install.
| What you install | You get |
|---|---|
| 50 gallon+Gas to electric | $3,000 |
| 65 gallon+Gas to electric | $3,500 |
| 80 gallon+Gas to electric | $4,000 |
| All sizesElectric to electric | $1,000 |
Eligibility
Do I qualify?
You need to meet all 4 of these.
The resident or homeowner must be an active SMUD customer, and the home must be individually metered by SMUD (each unit, in buildings of up to 4 units).
Must be installed by a participating contractor in SMUD's Contractor Network, who submits the rebate.
What to doPick a contractor from the SMUD Contractor Network at smudcontractornetwork.org. Appliance rebates - SMUD Get a quote from a contractor
NEEA Tier III or IV heat pump water heater (UEF 2.87 or higher), installed with a thermostatic mixing valve.
The project must be permitted and pass inspections.
What to doYour participating contractor pulls the permit.
Equipment
What equipment counts
The program sets these minimums for water heaters.
- Heat pump water heaters
NEEA Tier III or IV for climate zone 12, Uniform Energy Factor (UEF) of 2.87 or higher, with a thermostatic mixing valve.
Applying
How to apply
Your contractor applies for you. Rebates are subject to availability of funding.
- Choose a participating contractor.
Pick a contractor from the SMUD Contractor Network.
- Install a qualifying heat pump water heater.
NEEA Tier III or IV, with a thermostatic mixing valve, permitted and inspected.
- Sign the rebate application.
The contractor gives you the application to sign and submits it. Some contractors take the rebate off the price up front.
- Receive the rebate.
SMUD typically pays within 2 weeks of approving the final paperwork.
Forms and instructionsAppliance rebates - SMUD · Home Performance Program - SMUD · Rebates and savings tips - SMUD
Questions about applying1-916-732-5732 or AdvancedHomeSolutions@smud.org
Stacking
Use it with
SMUD says its heat pump water heater rebates can be stacked with statewide and federal incentive programs. The Go Electric panel and circuit rebates are paid on top for a gas-to-electric conversion.
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
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 Heat pump water heater rebate (SMUD) pay?
$1,000 to $4,000, 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. Must be installed by a participating contractor in SMUD's 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). See Use it with.
Is it still available?
Yes. It was open when we last checked, on October 27, 2026.
Plain words
Words used on this page
- UEF
- A water heater’s efficiency rating. 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.
When one of these pages changes, we re-check this page against it.
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