SMUD pays up to $4,000 to switch a gas water heater to a heat pump model, and LADWP pays up to $2,500. But PG&E's rebates page lists no heat pump water heater rebate at all, so where you live decides almost everything.
So the first step is your electric utility. Here's what each program's own page showed on October 8, 2026.
Which California Utilities Offer Heat Pump Water Heater Rebates?
As of October 8, 2026, SMUD lists $3,000 to $4,000 for gas-to-electric heat pump water heaters and $1,000 for electric-to-electric. LADWP lists $1,500 to $2,500 per unit. SCE and PG&E offer no-cost replacements only to income-qualified households through Energy Savings Assistance.
| Utility | Heat pump water heater offer (official page, October 8, 2026) |
|---|---|
| SMUD | $3,000 (50 gal+), $3,500 (65 gal+), $4,000 (80 gal+) for gas-to-electric; $1,000 electric-to-electric |
| LADWP | $1,500 to $2,500 per unit, by tank size and UEF |
| SCE | No-cost heat pump water heater replacement for income-qualified households (ESA) |
| PG&E | No rebate listed; ESA may repair or replace an unsafe or inoperative gas water heater for eligible homeowners |
SMUD also lists a $2,000 Go Electric bonus or panel upgrade rebate, which requires a gas-to-electric conversion.
How Much Does LADWP Pay for a Heat Pump Water Heater?
LADWP pays $1,500 to $2,500 per unit for ENERGY STAR heat pump water heaters with a UEF of 3.3 or higher and at least 30 gallons. The amount rises with tank size and efficiency, from $1,500 (30–55 gallons, 3.3 UEF) to $2,500 (76 gallons and up, 3.75 UEF).
| Tank size | 3.3 UEF | 3.5 UEF | 3.75 UEF |
|---|---|---|---|
| 30 to 55 gallons | $1,500 | $1,750 | $2,000 |
| 56 to 75 gallons | $1,750 | $2,100 | $2,250 |
| 76 gallons and up | $1,950 | $2,250 | $2,500 |
LADWP needs a paid invoice, the manufacturer's specification sheet and a final approved Building and Safety permit. New construction, additions and ADUs aren't eligible, and applications must be postmarked within 12 months of purchase. The LADWP Consumer Rebate Program guide covers the full application.
Can I Get a Heat Pump Water Heater for Free?
Possibly, if your household is income-qualified. SCE's Energy Savings Assistance lists a heat pump water heater replacement among no-cost improvements, including installation. PG&E's ESA may repair or replace a gas water heater for eligible homeowners when PG&E finds the existing unit inoperative or unsafe.
SCE's limit for June 1, 2026 to May 31, 2027 is 250% of federal poverty guidelines, for example $82,500 for a household of four. The free HVAC replacement guide explains how ESA works at PG&E and SCE.
Are TECH Clean California Incentives and the Federal Credit No Longer Available?
Both are no longer available for new projects. TECH Clean California's single-family heat pump water heater incentives have been reserved statewide since November 14, 2025, so they're no longer open, according to TECH's page. The federal 25C credit, which covered heat pump water heaters, ended for property placed in service after December 31, 2025 (IRS FS-2025-05).
So neither applies to a new 2026 installation. Work finished in 2025 still goes on the 2025 return; the guide to the federal home energy credits that ended covers that.
What Efficiency Does a Heat Pump Water Heater Need?
ENERGY STAR requires a UEF of 3.30 or higher for integrated heat pump water heaters, or 2.20 for 120-volt/15-amp plug-in models and split systems. LADWP's rebate also requires a UEF of at least 3.3 and a tank of at least 30 gallons.
ENERGY STAR's criteria also include a first-hour rating of at least 45 gallons per hour and a warranty of at least 6 years on the sealed system. Check the model's UEF on its spec sheet before you buy.
Official Sources
The amounts on this page come from LADWP's and SMUD's own rebate pages, and the efficiency minimums from ENERGY STAR, all checked on October 8, 2026.
- LADWP Consumer Rebate Program, heat pump water heater tiers and requirements
- SMUD: Improve Home Efficiency, SMUD's heat pump water heater rebates
- ENERGY STAR Water Heater Key Product Criteria, UEF minimums
Frequently Asked Questions
Does PG&E offer a heat pump water heater rebate in 2026?
Not on its rebates page. As of October 8, 2026, PG&E's Rebates & incentives page lists no heat pump water heater rebate. PG&E's Energy Savings Assistance program may repair or replace a gas water heater for eligible homeowners when PG&E determines the existing unit is inoperative or unsafe.
How much is the SMUD heat pump water heater rebate?
SMUD lists $3,000 for a 50-gallon-plus gas-to-electric upgrade, $3,500 for 65 gallons and up, $4,000 for 80 gallons and up, and $1,000 for electric-to-electric upgrades, as of October 8, 2026. SMUD says rebates are subject to availability.
Can I stack the LADWP rebate with another utility rebate?
No. LADWP's Consumer Rebate Program terms bar more than one rebate for the same product from more than one California electric or gas utility. An LADWP customer's heat pump water heater rebate tops out at LADWP's $2,500 for the largest, most efficient units.
Replacing a water heater? See the verified rebates for your address with the free rebate calculator.