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Act Fast: Unlock TECH Clean California Incentives for Energy-Efficient Heat Pumps

7/22/2025

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California residents have the chance to save significantly on energy-efficient upgrades through the TECH Clean California program. We are big believers in heat pump water heaters and funding is available to make the switch, but it’s first-come, first-served, so act fast! 

Available Incentives 

1. Heat Pump Water Heater Incentives:
  • Base incentives range from $1,100 (Northern CA) to $2,100 (Southern CA). 
  • Additional opportunities for rebates include up to $700 for larger units (55 gallons or more) and $1,500 for low global warming potential refrigerants. ​
2. Air-to-Water Heat Pump: 
Starting incentives at $3,500, with a potential $1,500 bonus for low-GWP equipment. 

3. Heat Pump HVAC Incentives: 
  • Incentives start at $1,000 for homes without existing AC and $1,500 for homes with AC. 
  • Equity incentives can go up to $4,000 for low-income households. 
  • However, incentives in the Southern California region are fully subscribed; check back to see if they have refunded this part of the program. 
Key Requirements: 
  • Time-of-use rate enrollment and participation in a water heater rewards program are required for those receiving incentives for heat pump water heaters. 
  • Enrollment in an approved demand response program is mandatory for all heat pump HVAC and water heater incentives. 
Funding Availability & Deadlines: 
  • Incentives are available statewide, but funding is allocated by product type and by region, so check the funding to make sure that your incentive is available. 
How to Get Started: 
  • Find a certified contractor through the Switch Is On contractor directory. 
  • Work with a TECH Clean California-trained contractor to secure your incentive and reserve your funding before it runs out. 
For more details, visit the TECH Clean California website, and get in touch with any questions via [email protected]. 

Our Perspective 
Heat pump water heaters are very efficient at 300% or higher and emission-free.  They are reliable when installed correctly, and we are teaching classes to plumbers and architects to show the industry the small but important changes we’ll have to make for these to operate right: air flow, filter accessibility, condensate, optimal locations, etc.  Nick’s house has had two units in operation for 2+ years trouble-free and they’ve performed as promised. 
Hurry, the clock’s ticking, and these incentives won’t last forever! 
 

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    Authors

    Nick Brown, CEA
    President, Build Smart Group
    ​Owner of the Net Zero Nest

    Isabella Brusco, CEA
    ​Energy Consultant, Build Smart Group 

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