Low income water heater replacement in California runs through two channels: your utility's Energy Savings Assistance program and state weatherization services. None promises a new water heater to every applicant. Each ties it to eligibility and an assessment of the home.
Which California Programs Replace a Water Heater for Free?
As of October 13, 2026, four utilities name water heaters in their no-cost Energy Savings Assistance programs: SoCalGas, PG&E, SCE and SDG&E. The state's weatherization page for low-income households lists repairing or replacing water heaters too.
| Program | What its official page lists (October 13, 2026) |
|---|---|
| SoCalGas Energy Savings Assistance | Tankless water heater, water heater blanket, water heater pipe insulation |
| PG&E Energy Savings Assistance | Upgrade or repair of heat pump water heaters |
| SCE Energy Savings Assistance | Heat pump water heater replacement |
| SDG&E Energy Savings Assistance | Water heater repair or replacement, heat pump water heater, water heater blanket |
| State weatherization | Repairing or replacing water heaters |
SDG&E's program page puts these items in its ESA Basic Plus tier, which requires additional income documentation. It says not all customers will qualify for all products, and existing appliances must meet age requirements for replacement.
What Does Each Utility Cover for Owners and Renters?
All four accept homeowners and renters. SoCalGas and PG&E say natural gas water heater repair or replacement may be available to eligible homeowners.
- SoCalGas. Its Energy Savings Assistance page marks the tankless water heater with a note: repair or replacement services may be available to eligible homeowners when existing natural gas units are deemed inoperable or hazardous.
- PG&E. Its program page names upgrading or repairing heat pump water heaters among work done at no charge for renters and homeowners. A footnote says water heater repair or replacement may be available to eligible homeowners if PG&E determines that existing natural gas units are inoperable or unsafe. The home must be at least five years old.
- SCE. Its program page lists heat pump water heater replacement among upgrades owners and renters may be eligible to receive free, in a single-family or mobile home. SCE says these services may not be available in all areas.
- SDG&E. Its page says property owner approval may be needed for some upgrades.
What Are the Income Limits in 2026?
A one-person household meets the Energy Savings Assistance limit at $39,900 a year or less. All four utilities show limits through May 31, 2027.
| Household size | Yearly income limit, Energy Savings Assistance |
|---|---|
| 1 | $39,900 |
| 2 | $54,100 |
| 3 | $68,300 |
| 4 | $82,500 |
The SoCalGas, SCE and SDG&E pages show this table as effective June 1, 2026 to May 31, 2027. PG&E's page shows the same amounts as valid through May 31, 2027. SoCalGas, SCE and SDG&E say a household can also qualify through a public assistance program such as CalFresh, WIC or SSI.
The state programs use monthly income. The state's weatherization income table, effective July 1, 2026, shows $2,660.00 for one person and $5,500.00 for four. The 2026 table for LIHEAP, the Low Income Home Energy Assistance Program, shows $3,331.66 for one person and $6,407.16 for four. DuloCore's guide to weatherization income guidelines covers the federal rule, and the eligibility check asks a few questions to match rebates to a household's situation.
Does the State Weatherization Program Replace Water Heaters?
It can. The Department of Community Services and Development lists repairing or replacing water heaters among energy efficiency improvements for low-income homeowners and renters.
The department's residential energy efficiency page says local service providers install the measures, and that the programs may prioritize applicants by greatest need, income and vulnerable household members.
The department's LIHEAP page says LIHEAP Weatherization provides free energy efficiency upgrades to low-income households. That page mentions water heaters twice: water heater blankets, in its description of the utilities' Energy Savings Assistance program, and a water heater flue repair in a customer story. It doesn't mention replacing a water heater. It says federal funding is limited, so some eligible households may not qualify for a benefit. For furnaces, see DuloCore's page about free HVAC replacement programs.
Are the Statewide Heat Pump Water Heater Incentives Still Open?
No. TECH Clean California single-family heat pump water heater incentives have been fully reserved and closed to new reservations since November 14, 2025.
The TECH Clean California incentives page also says HEEHRA single-family rebates are fully reserved statewide as of February 24, 2026, and HEEHRA multifamily rebates are fully reserved as of September 1, 2026. For utility rebates on a water heater you buy yourself, see DuloCore's table of water heater rebates in California.
Frequently Asked Questions
How Do I Apply for Energy Savings Assistance?
Apply with the utility that sends your bill. SoCalGas and SDG&E use an online interest form, and SCE takes applications through My Account. PG&E says no proof of income is necessary to apply online; it asks for proof at the home assessment.
Can I Get Money Back for Doing the Work Myself?
Not at PG&E. Its page says the work must be done by the subcontractors trained for the program.
How Do I Estimate Water Heater Rebates for My Home?
Enter your ZIP code in the rebate calculator and choose Water Heater as the project type. It estimates the savings for that project.
Replacing a water heater? Estimate rebates for your ZIP code with the free rebate calculator.