⚠️ This program is fully reserved and not accepting new applications as of February 24, 2026. The TECH Clean California single family heat pump water heater (HPWH) equity incentive ran out of funds. The Switch Is On incentive finder now shows this rebate as "no longer available." [Source: switchison.org/incentives/10053 (accessed 2026-05-17)]
Last verified 2026-05-17
What this program was
TECH Clean California offered a state rebate of $3,500 – $5,700 per unit (with stacking, advertised totals reached $4,185 – $10,385) for installing a heat pump water heater in income-qualified single family homes. Contractors enrolled in the TECH program submitted applications on the customer's behalf. The rebate was funded by the California Public Utilities Commission and administered by Energy Solutions. [Source: techcleanca.com/incentives/single-family-incentives (accessed 2026-05-17)]
Why it ended
The program was fully subscribed faster than expected. Service-area equity reservations closed between May 2024 and July 2024 in most regions, and remaining statewide capacity was exhausted by February 24, 2026. TECH has stopped accepting new income-verification applications for single family projects. [Source: techcleanca.com/incentives (accessed 2026-05-17)]
If you already started an application
- If your contractor submitted a reservation before February 24, 2026 and it was not approved, your project was moved to a waitlist in case more funding is released.
- Waitlisted projects only get the rebate if the water heater is installed after the reservation is approved — don't install yet if you're on the waitlist.
- Ask your TECH-enrolled contractor for your reservation status, or email TECH.contractor@energy-solution.com.
[Source: techcleanca.com/incentives/single-family-incentives (accessed 2026-05-17)]
Alternatives still available in 2026
1. Federal tax credit (Energy Efficient Home Improvement Credit, 25C)
- 30% of project cost, up to $2,000 for a qualifying heat pump water heater.
- Available to homeowners who owe federal income tax — applied when you file. Not a rebate; you pay up front and recover at tax time.
- Income-qualified families with little or no tax liability may not benefit much from this credit alone.
2. HEEHRA — federal heat pump rebate (still being rolled out in California)
- HEEHRA covers heat pump HVAC (space heating/cooling) for single family homes — not water heaters as of May 2026.
- Single family HEEHRA is also fully reserved statewide as of February 24, 2026, with waitlists in Northern, Central, and Southern California.
- Multifamily HEEHRA water heater projects may still be processing. Check techcleanca.com/incentives/heehrarebates.
- Up to $8,000 for households at or below 80% of Area Median Income (AMI), or up to $4,000 for households between 80% and 150% AMI — when funding reopens.
[Source: techcleanca.com/incentives/heehrarebates (accessed 2026-05-17)]
3. Utility-specific rebates
Check with your gas or electric utility — many still offer their own HPWH rebates that stack with federal credits:
- PG&E (most of Northern and Central California): rebates listed at pge.com/save-energy-and-money/rebates-and-incentives.
- SCE / SoCalGas (Southern California): check scerebates.com and socalgas.com/save-money-and-energy/rebates-incentives.
- SMUD (Sacramento): smud.org/rebates.
- BayREN (nine Bay Area counties): home+ rebates at bayren.org.
4. ESA Program (PG&E and other IOUs) — free energy efficiency upgrades for low-income households
- ESA provides free energy-saving home improvements (sometimes including water heater repair/replacement) for households at or below 200% of the federal poverty level.
- Apply: pge.com/esa or call 1-866-743-2273.
5. Self Help Enterprises and local CAP agencies (Nevada County: Common Goal)
- Local community action partnerships sometimes have weatherization funds that include water heater replacement for income-qualified households.
- Nevada County: Common Goal at commongoalca.org or (530) 273-9541.
How to get help deciding
- Switch Is On contractor finder: switchison.org/find-contractor — even if the equity rebate is closed, TECH-enrolled contractors know the current funding picture and can flag any reopened windows.
- California Energy Commission rebate hub: energy.ca.gov/programs-and-topics/programs/inflation-reduction-act-residential-energy-rebate-programs — official source for HEEHRA and HOMES rollout updates.
- 211: Dial 211 anywhere in California for free help connecting to utility, weatherization, and home repair programs.
Sources
- The Switch Is On incentive page (now retired) (accessed 2026-05-17)
- TECH Clean California — Single Family Incentives (accessed 2026-05-17)
- TECH Clean California — Incentives Overview (accessed 2026-05-17)
- TECH Clean California — HEEHRA Rebates (accessed 2026-05-17)