HVAC System Rebates in California (2026)

19 active programs · California 2026

Last updated: June 05, 2026

Estimated savings: Varies by program
calculate Calculate My Stacked Savings

California Hvac Rebates

Californians have access to several programs designed to offset the costs of upgrading their HVAC systems, including state, federal, local, and utility-run initiatives. These programs aim to improve energy efficiency and reduce energy consumption across residential, commercial, and public sectors. From low-income weatherization assistance to rebates for heat pump installations, there are several ways to save money while upgrading to more efficient HVAC systems.

How much can California homeowners save on hvac in 2026?

California homeowners could save a significant amount in 2026 through programs like the Home Electrification and Efficiency Rebate (Heat Pump) and the HOMES Whole-House Energy Savings Rebate, both offering varying amounts based on specific eligibility criteria and project scope, along with other state and local programs.

Several programs offer incentives for California residents. The federal Home Electrification and Efficiency Rebate (Heat Pump) and HOMES Whole-House Energy Savings Rebate programs offer rebates with specific eligibility requirements. California also provides assistance through programs like the California Low-Income Weatherization Program (LIWP) and the Energy Savings Assistance (ESA) program. To determine potential savings, calculate your California hvac rebate. Additional savings may be available through California heat pump rebates, and more information on the federal programs can be found at the Home Electrification and Efficiency Rebate (Heat Pump) program page.

California HVAC System Programs

Heat Pump HVAC System

Home Electrification and Efficiency Rebate (Heat Pump)

Up to $8,000 (income-tiered)
Provider:
DOE (Department of Energy)
Expires:
2032-12-31
Income-qualified:
Yes (AMI thresholds apply)
calculate Check my eligibility for this rebate
Heat Pump HVAC System Insulation Weatherization Windows & Doors

HOMES Whole-House Energy Savings Rebate

50% of project cost up to $4,000 (moderate) or $8,000 (low-income)
Provider:
DOE (Department of Energy)
Expires:
2032-12-31
Income-qualified:
Yes (AMI thresholds apply)
calculate Check my eligibility for this rebate
HVAC System Insulation Windows & Doors

Commercial Buildings Energy Efficiency Deduction (179D)

Up to $5.00/sqft (base $0.50-$1.00/sqft without prevailing wage; $2.50-$5.00/sqft with prevailing wage + apprenticeship)
Provider:
IRS (Internal Revenue Service)
Expires:
2032-12-31
calculate Check my eligibility for this rebate
Insulation Weatherization HVAC System

California Low-Income Weatherization Program (LIWP)

Free services up to $8,000 value
Provider:
California Department of Community Services and Development (CSD)
Income-qualified:
Yes (AMI thresholds apply)
calculate Check my eligibility for this rebate
Weatherization Insulation HVAC System

California ESA Program (Energy Savings Assistance)

Free services (no cost to participant)
Provider:
California Public Utilities Commission (CPUC)
Income-qualified:
Yes (AMI thresholds apply)
calculate Check my eligibility for this rebate
Heat Pump HVAC System

BayREN Home+ Heat Pump Rebate

$3,000 - $4,500 (varies by income)
Provider:
Bay Area Regional Energy Network (BayREN)
Expires:
2026-12-31
Income-qualified:
Yes (AMI thresholds apply)
calculate Check my eligibility for this rebate
HVAC System Water Heater Weatherization

California Schools Healthy Air, Plumbing, and Efficiency (CalSHAPE)

Varies by project scope — grant-funded, no fixed per-unit amount. Typical grants $200K-$2M per school site.
Provider:
California Department of General Services (DGS) / Division of the State Architect (DSA)
Expires:
2027-06-30
calculate Check my eligibility for this rebate
Insulation Windows & Doors HVAC System Water Heater

CalFHA Energy Efficient Mortgage (EEM)

Up to $6,500 for energy improvements
Provider:
California Housing Finance Agency (CalHFA)
Income-qualified:
Yes (AMI thresholds apply)
calculate Check my eligibility for this rebate

Eligibility Requirements

  • Active residential utility account at the project address in California.
  • Equipment must meet each program's efficiency requirements (ENERGY STAR or higher for most programs).
  • Installation must be performed after the program's effective date.
  • Income-qualified programs require household income at or below the program's Area Median Income (AMI) threshold.
  • Federal savings honor the 25C aggregate annual cap ($3,200/yr); the calculator applies it automatically.

See Your California HVAC System Rebate Total

Confirm the exact programs you qualify for, stacked with federal and state incentives.

calculate Open Rebate Calculator

California HVAC System Rebates — Frequently Asked Questions

What is the California Low-Income Weatherization Program (LIWP)?
The California Low-Income Weatherization Program (LIWP) provides assistance to eligible low-income households to improve their home's energy efficiency. The amount of assistance varies based on the specific needs of the household and the scope of the weatherization work required. Details can be found at the California Department of Community Services and Development.
What HVAC rebates are offered by California utilities?
Several utility companies in California offer rebates for HVAC upgrades. For example, SMUD, LADWP, PG&E, SCE, and SDG&E all provide rebates for heat pump HVAC systems, with the rebate amount varying based on the specific utility and the system installed. SoCalGas also offers energy efficiency rebates for qualifying upgrades.
What financing options are available for HVAC upgrades in California?
California offers several financing options to help homeowners afford energy-efficient HVAC upgrades. These include the CalFHA Energy Efficient Mortgage (EEM) program, California GoGreen Home Energy Financing, and California PACE (Property Assessed Clean Energy) programs, each with varying eligibility requirements and financing terms.
Are there rebates for commercial buildings in California?
Yes, the federal Commercial Buildings Energy Efficiency Deduction (179D) is available for eligible commercial buildings in California. The deduction amount varies based on the energy efficiency improvements made, and eligibility criteria are detailed by the IRS.