As homeowners seek ways to improve energy efficiency in their homes while saving money, they may be relieved to learn about California’s hybrid water heater rebate program. Through this program, eligible homeowners may qualify for special savings on their hybrid water heater installations.

In this blog post, we’ll discuss California’s hybrid water heater rebate program in detail, including eligibility requirements, rebate amounts, and the advantages of switching to a hybrid water heating system.

What Is California’s Hybrid Water Heater Rebate Program?

Signed into law in August 2022, the Inflation Reduction Act (IRA) aims to help homeowners reduce their carbon footprint by offering tax incentives on energy-efficient upgrades, including for hybrid water heater systems.

The California Energy Commission (CEC) received guidance from the U.S. Department of Energy (DOE) on July 27, 2023, which provided detailed information on how the CEC can apply for DOE funding. According to the CEC, rebates are expected to become available in 2024.

Under the IRA, more than $582 million will be allocated to California for the whole-house Homeowner Managing Energy Savings (HOMES) rebate program and the point-of-sale High-Efficiency Electric Home Rebate (HEEHRA) program.


The HOMES program offers performance-based rebates for whole-house energy-saving retrofit projects. Through this program, families may be eligible to receive up to $8,000 in annual rebates for energy efficiency upgrades made to their homes, depending on energy savings and household income.


The HEEHRA program provides point-of-purchase rebates for qualifying projects in low- and middle-income households. Through this program, families may be eligible to receive up to $14,000 in annual rebates for qualifying projects, depending on their household income.

How Can I Benefit From This Program?

The biggest benefit of taking advantage of California’s hybrid water heater rebate programs is money savings. Under the HEEHRA program, families can receive up to $1,750 for installing a heat pump water heater in their home. For the HOMES program, families may receive up to $2,000 for the total cost of their heat pump water heaters, including labor.

Families can also enjoy ongoing savings thanks to improved energy efficiency with a hybrid water heater system. Heat pump water heaters offer superior energy efficiency compared to other water heater systems, which translates into significant monthly savings on utilities.

Who Is Eligible for the Rebate?

All families are eligible to apply for a rebate under the HOMES program; however, the rebate amount is greater for low- and middle-income households. A low- or middle-income household is one that falls below 150% of the area median income level.

To be eligible for the HEEHRA program, families must belong to a low- or middle-income household. The rebate amount is different depending on your specific income level:

  • Low-income households with ≤ 80% area median income may have 100% of the cost of their hybrid water heater installation covered.
  • Moderate-income households between 80% and 150% area median income may have 50% of the cost of their hybrid water heater installation covered.

What Is the Impact of the Hybrid Water Heater Rebate Program?

Each year, approximately 800,000 water heaters are replaced in California. By encouraging a significant portion of these replacements to involve hybrid water heaters, we can substantially reduce our energy consumption. This reduction eases the strain on the energy grid and promotes more eco-conscious decisions.

Reducing the initial cost of hybrid water heaters to make them competitive with gas water heaters holds immense significance. Many people who replace their water heaters do so unexpectedly due to emergencies.

In such circumstances, researching various options may seem daunting, and financial constraints can limit the ability to make more energy-efficient purchases. With the hybrid water heater rebate available, these systems become more accessible and affordable to all families.

Advantages of Hybrid & Heat Pump Water Heaters

The rebate program is a great reason to make the switch, but it isn’t the only advantage to choosing a hybrid water heater. Consider these advantages of upgrading to a heat pump water heater in your home:

  • Smart control panel: Enjoy the modern convenience of digital controls and touchscreen capability with hybrid water heaters.
  • Vacation mode: Automatically save money on hot water while you’re away with available vacation mode settings.
  • Quieter operation: Say goodbye to the headache of a noisy water heater by switching to electric operation.
  • Fast recovery: Regain quicker recovery during periods of high hot water demand with a hybrid water heater.

Switch to a Heat Pump Water Heater Today

Ready to switch to a heat pump water heater? Enjoy the benefits of these exceptional systems firsthand and receive your rebate through the HEEHRA or HOMES program in California.

Contact Barnett Plumbing at (925) 438-6326 to schedule hybrid water heater installation and learn more about the available rebates in your area.

Here’s my personal promise to you: When you call or schedule an on-site estimate, there will be no pressure. No obligation. We will not sell you a water heater you don’t need or want.

Thanks for letting us be your trusted plumber.

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Phil Barnett
President of Barnett Plumbing & Water Heaters