In California, the main no-cost path to a replacement furnace or heat pump water heater is the utilities' Energy Savings Assistance program, and it's income-qualified. For a family of four in SCE territory, the income limit for June 2026 to May 2027 is $82,500 a year.
So "free" usually means income-qualified, and it usually means the utility decides what gets replaced. Here's what the official pages showed on October 8, 2026.
Is There a Free HVAC Replacement Program in California?
Yes, for income-qualified households. As of October 2026, Energy Savings Assistance (ESA), run by California's utilities, provides approved home improvements at no cost. PG&E says furnace and water heater repair or replacement may be available to eligible homeowners when PG&E finds the existing gas units inoperative or unsafe.
| Program | What it covers (official page, October 8, 2026) | Who qualifies |
|---|---|---|
| PG&E Energy Savings Assistance | No-cost improvements; furnace or water heater repair or replacement when gas units are inoperative or unsafe | Income-qualified owners and renters; home at least 5 years old |
| SCE Energy Savings Assistance | No-cost improvements such as a heat pump water heater replacement, including installation | Income at or below 250% of federal poverty guidelines, or enrolled in listed assistance programs; single-family home (4 or fewer units) or mobile home |
| CSD Low-Income Weatherization Program (LIWP) | Solar PV and energy efficiency upgrades at no cost | Low-income households |
| SMUD heat pump HVAC rebates | $3,000 variable-stage or $2,000 two-stage heat pump (gas-to-electric); not free | SMUD customers |
Who Qualifies for Energy Savings Assistance?
Each utility sets its own ESA rules. SCE's income limit for June 1, 2026 to May 31, 2027 is 250% of federal poverty guidelines, from $39,900 for one person to $82,500 for four. Households enrolled in programs such as CalFresh, CalWORKs, Medi-Cal, SSI, WIC or LIHEAP can also qualify.
SCE's limits by household size:
| Household size | SCE ESA annual income limit (June 1, 2026 to May 31, 2027) |
|---|---|
| 1 | $39,900 |
| 2 | $54,100 |
| 3 | $68,300 |
| 4 | $82,500 |
| 5 | $96,700 |
| 6 | $110,900 |
PG&E's flyer says both renters and owners are eligible, the home must be at least five years old, and its income chart is valid through May 31, 2027. So PG&E customers check PG&E's own chart, and SCE customers apply through SCE My Account.
Does Energy Savings Assistance Replace Furnaces and Heat Pumps?
PG&E lists a new furnace or water heater among common improvements, with replacement available to eligible homeowners when PG&E determines the existing gas unit is inoperative or unsafe. SCE lists a heat pump water heater replacement as an example and says it covers the cost, including installation by an authorized contractor.
But neither page promises a new central air conditioner or heat pump HVAC system on request. PG&E's furnace replacement depends on PG&E determining that the existing gas unit is inoperative or unsafe, so applying is the only way to find out what a specific home gets.
Are TECH Clean California and HEEHRA Heat Pump Rebates Fully Reserved?
They're not available for new single-family projects. TECH Clean California's single-family heat pump incentives have been reserved statewide since November 14, 2025, and California's HEEHRA single-family rebates have been fully reserved statewide since February 24, 2026, according to TECH's incentives page.
TECH's page also says it's no longer accepting new income-verification applications for single-family projects, and new reservations go on a waitlist. And the federal 25C credit for heat pumps ended for property placed in service after December 31, 2025 (IRS FS-2025-05). The guide to the federal home energy credits that ended explains what's left on a 2025 return.
How Do I Apply?
PG&E customers apply at pge.com/energysavings or by calling 1-800-933-9555. SCE customers apply for ESA through SCE My Account. The state's Low-Income Weatherization Program is listed on the CSD website (csd.ca.gov).
Before applying, gather proof of household income or of enrollment in an assistance program, plus your utility account details. Households that don't qualify for ESA can check other verified programs at their address with the free rebate calculator.
Official Sources
Income limits and program details come from SCE's and PG&E's own Energy Savings Assistance pages, SMUD's rebate page and TECH Clean California's incentives page (which shows its single-family incentives fully reserved), all checked on October 8, 2026.
- PG&E Energy Savings Assistance flyer (PDF), no-cost improvements, furnace condition and contact details
- SCE Energy Savings Assistance, income limits for June 2026 to May 2027 and how to apply
- TECH Clean California single-family incentives, shows TECH Clean California and HEEHRA single-family incentives as fully reserved
Frequently Asked Questions
Can renters get a free HVAC replacement in California?
Renters can apply for Energy Savings Assistance: PG&E says both renters and owners are eligible, and SCE's page names homeowners and renters. But PG&E's furnace repair or replacement is available to eligible homeowners when the gas unit is inoperative or unsafe, so what a rental gets depends on the assessment.
What is the income limit for SCE's Energy Savings Assistance?
For June 1, 2026 to May 31, 2027, SCE's limit is 250% of federal poverty guidelines: $39,900 for one person, $54,100 for two, $68,300 for three and $82,500 for four, plus $14,200 for each additional person. Households in listed assistance programs such as CalFresh or Medi-Cal can also qualify.
Is the HEEHRA heat pump rebate fully reserved in California?
Yes, for new single-family projects. TECH Clean California's incentives page says HEEHRA single-family rebates have been fully reserved statewide since February 24, 2026, and new reservations go on a waitlist. A waitlisted project only qualifies if the heat pump is installed after the reservation is approved.
Did the federal heat pump tax credit end?
Yes. The federal 25C credit, which covered qualified heat pumps, ended for property placed in service after December 31, 2025, according to IRS Fact Sheet FS-2025-05. A heat pump installed in 2026 gets no federal credit; only utility, state and local programs remain.
Not sure what you qualify for? Check the verified programs at your address with the free rebate calculator.