HVAC Efficiency

LADWP Rebate Increase (2026)

person DuloCore Team
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Updated Nov 02, 2026

Mayor Bass asked LADWP to raise efficiency rebates by 25%. It is not approved yet. What LADWP pays today for heat pumps, and whether to buy now or wait.

Quick Answer: Not yet. As of October 30, 2026, the 25% rebate increase is a request from Mayor Bass. The Board resolution of October 27 leaves it out, and LADWP rebate amounts are unchanged.

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Mayor Karen Bass has asked the LADWP Board to raise the energy efficiency rebate program by 25%. DuloCore checked the request, the Board's October 27 action and the rebates LADWP pays today on official City, LADWP and IRS pages on October 30, 2026.

Has LADWP Increased Its Rebates?

Not yet. As of October 30, 2026, the 25% rebate increase is a request from Mayor Bass. The Board resolution of October 27 leaves it out, and LADWP rebate amounts are unchanged.

Item Status on October 30, 2026 Official source
25% bigger efficiency rebates Requested by the Mayor on October 26; no Board vote announced Mayor's statement
Shutoff pause Approved October 27: no residential shutoffs for non-payment through the end of 2026 LADWP Board release
Rate review Approved October 27: LADWP to review the electric rate ordinance LADWP Board release
Independent rate audit Requested by the Mayor; welcomed by the Board President Mayor's statement, Board release
More detailed usage information The Mayor says it starts next month for every residential customer Mayor's statement

What Did Mayor Bass Ask For?

On October 26, 2026, Mayor Bass called for an outside, independent audit of LADWP rates and asked the Board to boost LADWP's energy efficiency rebate program by 25%.

In her statement, the Mayor says the 25% increase should cover a broader range of upgrades, such as cooling systems, efficient windows and appliances. She also asked LADWP to offer an incentive to enroll in Level Pay and to consider enrolling customers automatically.

The statement gives no start date, no budget and no new rebate amounts. It says that beginning next month, LADWP will give every residential customer more detailed information about their electricity and water use.

What Did the LADWP Board Approve on October 27?

The Board suspended residential shutoffs for non-payment through the end of 2026, ordered a review of the electric rate ordinance and told LADWP to promote its efficiency programs more.

According to the LADWP release, the resolution directs LADWP to:

  • suspend residential water and electricity disconnections for non-payment through the rest of 2026, without limiting safety shutoffs;
  • review the electric rate ordinance and develop recommendations on rate factors, levels, tiers and seasonality;
  • increase promotion of energy efficiency and water conservation programs;
  • offer eligible customers a place in the Power Savers smart thermostat program;
  • review the EZ-SAVE and Lifeline discount programs.

The release names no change to rebate amounts. It says median customer electricity use rose 15 to 20 percent in the most recent two-month billing periods compared with the same summer months in 2025, and that LADWP electric rates rose 7 percent since last year. For payment plans, discounts and the shutoff pause, see LADWP high bill help.

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What Rebates Does LADWP Pay Today?

LADWP's Consumer Rebate Program pays up to $2,500 per ton for a heat pump HVAC system and up to $2,500 for a heat pump water heater, for equipment bought and installed on or after November 1, 2025.

Upgrade LADWP rebate (checked October 30, 2026)
Heat pump HVAC, ducted (central, split or packaged) $1,000 to $1,250 per ton, by efficiency
Heat pump HVAC, ductless (mini-split or multi-split) $1,500 to $2,500 per ton, by efficiency
Heat pump water heater, 3.3 UEF or higher $1,500 to $2,500 per unit, by tank size and UEF
Central air conditioner, 15.2 SEER2 or higher $100 to $120 per ton
Whole house fan $200
ENERGY STAR windows $2 per square foot
Attic insulation, batt or roll $0.30 or $0.50 per square foot, plus $0.25 under the extended launch special
Smart thermostat (Efficient Product Marketplace) Up to $75. Purchases made June 1 to October 31, 2026 could get up to $100 if claimed by December 31, 2026

The Consumer Rebate Program page says you apply after both buying and installing, within 12 months of the purchase date. Heat pumps need a final approved building permit and an AHRI certificate. Funding is limited and first come, first served. The LADWP application guide walks through each step.

LADWP also runs the free Home Energy Improvement Program. Its technicians assess the home and then make energy and water upgrades at no cost. It covers single-family homes, condos, townhomes and buildings of up to four units that are new to the program.

Should I Buy Now or Wait for a Bigger Rebate?

Replace failed equipment now. No official source gives a start date for a 25% increase. No official source says it would cover equipment bought before it starts.

  • A broken air conditioner or water heater. Replace it now. Today's heat pump amounts already rose for equipment bought and installed on or after November 1, 2025.
  • A smart thermostat. The Efficient Product Marketplace pays up to $75 for an ENERGY STAR smart thermostat. Thermostats bought June 1 to October 31, 2026 could get up to $100, and those can still be claimed until December 31, 2026. See the smart thermostat rebate guide.
  • A planned upgrade that can wait. Get quotes now and watch for Board action on the Mayor's request. Ask your contractor to hold the quote for a few months.
  • Free help first. Apply for the free home assessment, which may cover some upgrades at no cost.

Did the Federal Heat Pump Tax Credit End?

Yes, for a 2026 install. The IRS says the energy efficient home improvement credit covers improvements made through December 31, 2025, so it ended for 2026 installs. LADWP's rebate page still mentions it.

The IRS credit page says the credit applies to qualifying property placed in service before December 31, 2025. That makes the LADWP rebate the main money left for most Los Angeles heat pump projects. See which federal home energy credits ended.

For a statewide list of who still pays, see our guide to HVAC rebates in California.

Frequently Asked Questions

Did LADWP approve the 25% rebate increase?

Not as of October 30, 2026. The LADWP release on the October 27 Board action lists no rebate increase. The 25% figure comes from the Mayor's October 26 statement, which asks the Board to act.

Will an audit lower my LADWP bill?

No result has been announced. The Board release says the Board President welcomed an independent audit, and that any updated rates must fully cover LADWP's costs.

How do I apply for an LADWP rebate?

Apply online through your LADWP account or by mail with the Consumer Rebate Program application, after the equipment is installed. LADWP lists 866 484-0433 for program questions, Monday through Friday, 9:00 a.m. to 3:00 p.m.

Planning an LADWP upgrade? Estimate rebates for your ZIP code with the free rebate calculator, or see every LADWP program DuloCore tracks on the LADWP programs page.

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