Cash in on CA’s biggest heat pump water heater incentive
Great news! Another financial incentive program has been created specifically for homeowners to upgrade to a heat pump water heater.
Upgrading to a heat pump or hybrid water heater will reduce stress on the state’s electric grid and save you money on utility bills. Heat pump water heaters are a win-win for both your wallet and Mother Earth.
The State is on a mission to reduce our reliance on fossil fuels (natural gas) and greenhouse gas emissions. And it’s putting its money where its mouth is.
TECH Clean California’s heat pump water heater rebate program
TECH Clean California is a taxpayer-funded program focused on leveraging technology to reduce our negative environmental impact and help all Californians decrease their utility costs.
TECH Clean California will not only provide rebates for upgrading to a heat pump water heater, but also for upgrading your home’s electrical system to support the heat pump water heater.
This statewide program has three main goals:
- Decrease our use of electricity
- Decrease greenhouse gas emissions and use of natural gas
- Decrease residents’ utility costs
To achieve these goals, the state is providing residents with generous rebates on both heat pump cooling and heating systems and heat pump water heaters.
Why upgrade to a heat pump water heater?
Heat pump water heaters are an energy-efficient alternative to traditional gas tank water heaters. Instead of relying solely on electricity or gas to heat your water, heat pump water heaters work by transferring heat from the surrounding air to warm your water.
This heat-transfer method is far more energy-efficient than standard water heaters. Increasing your home’s energy efficiency will decrease both your utility costs and your carbon footprint.
Get paid to reduce your utility bill
At Barnett Plumbing, we want you to know about every rebate and tax incentive available for upgrading to a heat pump water heater.
For ease of access, here are links to our previous blogs about federal tax incentives and state rebate programs.
The Switch is On is a great resource for tracking down all current, available tax incentives and rebates.
TECH Clean California’s rebate program starts November 1, 2023.Â
TECH Clean Heat Pump Water Heater Rebates
Any replacement of a current water heater system with a heat pump water heater is eligible for these incentives.
| Heat Pump Water Heater Rebate | 55-Gallon (or larger) Capacity Incentive | Electrical Upgrade Incentive** | Max Rebates | |
|---|---|---|---|---|
| General Market | $3,100 | $700 | $2,000 | $5,800 |
| Lower-Income Households* | $4,185 | $700 | $4,000 | $8,885 |
*Heat pump water heater rebate includes purchase and installation.
**Electrical panel upgrade is up to 200 amps only.
***Low-income households are eligible if they meet one of the following:
- Live in single-family low-income residences, as defined by the state of California
- Have a household income at or below 80 percent of your area’s median income
- Have a household income at or below 250 percent of the Federal poverty level.
Heat pump water heater rebate application process
TECH Clean California’s heat pump water heater rebate program is passed through to the customer from their plumbing contractor.
The program demands that 100 percent of the rebate be passed along to the customer.
Customers receive two great benefits from this requirement: All of the financial incentive and NONE of the paperwork.
At Barnett Plumbing, we always complete and submit all rebate paperwork for our customers. This time, the state is requiring all plumbing contractors to do things the Barnett way.
Rebate application deadline: December 31, 2025
Get the hottest water money can buy
All financial incentive programs make upgrading to a heat pump water heater as affordable as purchasing a standard tank water heater.
TECH’s newest rebate could make upgrading even more affordable than a standard gas water heater!
Every rebate program currently available will only last for a limited time. If you aren’t ready to make the switch, we will be happy to add you to our Rebate Waiting List when you call us at 925-292-6704.
And if you are ready to switch, you can expect to save an estimated $200 a year (for a family of four) in utility costs.
What questions do you have about upgrading your water heater? We’ll happily answer them and ensure you have the right system for you and your family. Give us a call at  925-292-6704.
