California heat pump incentives: 2024 guide

Upgrade your heating & cooling system with a new heat pump
California heat pumps

Heat pumps—the energy-efficient, all-electric, extra-comfortable home heating and cooling technology—are a great fit for the mostly warm, not-so-humid climate in most of California. As of 2024, most homeowners in Cali are eligible for a few thousand dollars in incentives towards the cost of a heat pump.


  • High-efficiency heat pumps and mini splits are eligible for a federal tax credit up to $2,000.

  • Larger federally funded rebates might become available in 2024, though they may not be easy to claim.

  • A California statewide rebate of $1,000 is available, up to two systems per household.

  • Many utility companies in California offer further rebates for heat pumps, ranging from $100 to $3,000.

  • You can generally stack or combine federal, state, and local heat pump incentives.

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We’ve covered all the incentives for clean heating and cooling upgrades from the Inflation Reduction Act of 2022 in detail here. The quick version:

The TECH Clean California program offers a statewide incentive for homeowners in single family or small multi-family buildings who switch from traditional heating over to a heat pump.

Qualified systems installed by qualified contractors are eligible for a $1,000 rebate. If your home needs more than one heat pump (possible in larger homes), you can claim this rebate twice, for up to $2,000 per project. The paperwork for the rebate will flow through your contractor.

According to the DSIRE database, about 20 utility companies around the state have rebate programs for residential customers who install heat pumps. The savings can range from $100 up to $3,000, depending on the utility company, and sometimes the size of the system. (Notably, PG&E does not offer residential heat pump rebates as of January 2024.)

The easiest way to figure out what’s available in your area is the incentive finder tool at The Switch Is On (a partner site of the California Public Utilities Commission). Follow your utility company's instructions to claim the rebates.

When you sign up for the EnergySage Heat Pump Marketplace, you’ll get an instant estimate of how much it might cost to install a heat pump in your home, based on real-world quotes for similar homes from vetted installers. You can schedule consultations with seasoned pros. If you want some independent guidance, one of our Energy Advisors can help you through the process. We’re already the country’s largest marketplace for solar energy, and now we’ve brought that clean-energy experience to heat pump shopping. Learn more here.

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