Search "heat pump rebates" and you will find a hundred articles promising you thousands of dollars back, most of them quoting a federal credit that no longer exists. The answer to "what will I actually get" is actually that it depends on your address. Two neighbors in different cities can qualify for very different amounts. Luckily, it's a system you can read.
The short answer
In California, most homeowners qualify for a heat pump rebate from their local clean energy provider, usually a few thousand dollars, and up to $10,000 in a few areas. Some cities stack an additional rebate on top of that. Income-qualified households can access programs worth up to $8,000 as of August 2026, though that figure is likely to change. There is no longer a federal heat pump tax credit: it expired at the end of 2025. Your exact rebate comes down to your address, and you can find it in a few minutes using the steps below.
First, the federal credit is gone
For years, the headline number was the federal 25C tax credit, worth up to $2,000 toward a qualifying heat pump. That credit expired on December 31, 2025. Heat pumps installed in 2026 or later do not qualify for it. If you see a 2026 article still advertising a "$2,000 federal credit," it is out of date.
Here is the good news. In California, the federal credit was never the biggest piece anyway. The real savings come from your local clean energy provider and your city, and those programs are still very much alive. So do not let the federal news talk you out of a heat pump. The money is still on the table, it is just local now.
How heat pump rebates work in California
The mechanics are the same across the state: your savings come in layers. Think of your rebate as a stack with up to three of them. Almost everyone gets the first layer. Some homeowners get all three. The exact dollar amounts differ by area, and the numbers further down are the ones we track for our Bay Area service area.
Layer 1: Your clean energy provider sets the base
This is the rebate nearly every California homeowner qualifies for, and it is tied to who supplies your electricity. Most California cities now buy their power through a community choice provider rather than straight from the big utility, and each provider runs its own heat pump rebate. Which one is yours depends entirely on your address. This layer is usually worth somewhere in the low thousands, and more in a few areas.
Layer 2: Your city may stack its own rebate on top
A handful of cities add a local rebate on top of the provider rebate, so residents there get two rebates for the same install. This is where the totals climb, and it is the single biggest reason two otherwise identical quotes end up with different net prices. If you live in one of these cities, you are leaving real money behind if you do not claim both.
Layer 3: Income-qualified programs go significantly bigger
If your household falls under certain income thresholds, you can access programs that cover a far larger share of the project, sometimes most of it. The federal Home Electrification and Appliance Rebates program is the largest of these, worth up to $8,000 for eligible households as of August 2026. That amount and its availability are likely to change, and the program is administered through the state, so this is the layer most worth confirming directly for your situation.
Current Bay Area rebates by provider and city
Last verified: August 2026. These are the programs and amounts we track for our service area. Rebate programs change their amounts, funding, and eligibility often, so treat this as a snapshot. Before you decide, confirm the current number for your address, or ask us and we will pull the latest for you.
Base rebate, set by your clean energy provider:
| Clean energy provider | Typical service area | Rebate |
|---|---|---|
| WestLight Energy | San Mateo County | $1,500 per condenser, up to two, so $3,000 max |
| Silicon Valley Clean Energy (SVCE) | Much of the South Bay | $2,000 per household |
| Silicon Valley Power | Santa Clara | $3,000 per ton, up to $10,000 |
| San Jose Clean Energy | San Jose | $1,500 |
| MCE | Parts of the East Bay and North Bay | $400 per ton, plus a $2,000 flat rebate |
City rebate, stacked on top of the provider rebate where offered:
| City | Provider rebate | Extra city rebate |
|---|---|---|
| Menlo Park | WestLight, $1,500 per condenser | Plus $1,500 |
| Milpitas | SVCE, $2,000 | Plus $2,500 |
| Sunnyvale | SVCE, $2,000 | Plus $1,000 |
| Los Altos | SVCE, $2,000 | Plus $1,000 |
What this looks like in practice. Say you live in Sunnyvale. Your clean energy provider is SVCE, which pays $2,000 per household, and Sunnyvale stacks an extra $1,000 on top. That is $3,000 off your install before you even look at income-qualified programs. A homeowner one town over, on a different provider with no city rebate, might see $2,000. Same equipment, different address, different number. That is why there is no single "California rebate amount," and why the only number that matters is the one for your address.
Do not see your city listed? That does not mean you get nothing. It usually means your savings come from the provider layer, and possibly the income-qualified layer. The only way to know your real number is to check your specific address, which is the next section.
How to find your specific number by address
You can piece this together yourself in about fifteen minutes, or you can let us do it. Here is the manual version so you know it is legitimate.
- Find out who supplies your electricity. Look at your utility bill. In much of the Bay Area, PG&E delivers your power but a community choice provider such as WestLight Energy, Silicon Valley Clean Energy, MCE, or San Jose Clean Energy actually supplies it, shown as a separate generation line on the bill. That provider, not PG&E, runs your base rebate.
- Check whether your city stacks a rebate. Search your city name plus "heat pump rebate." Cities like Menlo Park, Milpitas, Sunnyvale, and Los Altos add their own on top. Many do not, and that is fine.
- Check income-qualified eligibility. If your household income is below the program thresholds, look into the state-administered electrification rebates. These can dwarf the standard rebates, so they are worth the extra step.
- Or skip all of it. Tell us your address and we pull every rebate you qualify for, apply them to your estimate, and file the paperwork for you. That is the whole point of working with us.
What you need to qualify
Most California rebate programs share a few basic requirements. You generally need to own and live in the home, use a licensed contractor who pulls the required permit, and install qualifying high-efficiency equipment that meets the program's spec. Income-qualified programs add an income threshold on top. None of this is exotic, but a single missed detail, like skipping the permit, can disqualify an otherwise valid rebate. We confirm the exact requirements for each program that applies to your address so nothing falls through on a technicality.
What about financing?
Rebates lower the price. Financing spreads what is left over time. State-backed options like GoGreen California and on-bill financing from local clean energy providers can cover the remaining cost over several years, sometimes at very low or zero interest for eligible homeowners, so you are not paying the full amount up front while you wait for a rebate to arrive.
Who actually files all this paperwork?
This is the part that trips people up. Each rebate has its own application, its own documentation requirements, and its own deadlines. A contractor who hands you a stack of forms and wishes you luck is leaving you to do the hard part alone, and plenty of homeowners never claim what they are owed simply because the process is tedious.
We handle it. When we prepare your estimate, every rebate you qualify for is already applied, and we file the paperwork on your behalf. You do not chase programs or track deadlines. You get the net price and we do the administrative work behind it.
Frequently asked questions
Is there a heat pump tax credit in 2026?
No. The federal 25C credit that offered up to $2,000 expired at the end of 2025, and installs completed in 2026 or later do not qualify. Any 2026 savings come from local provider rebates, city rebates, and income-qualified programs instead.
Does PG&E offer a heat pump rebate?
Not directly, for most Bay Area homeowners. PG&E delivers your electricity, but in much of the region your power is supplied by a community choice provider such as Silicon Valley Clean Energy, WestLight Energy, MCE, or San Jose Clean Energy, and that provider is the one running the heat pump rebate. Your bill shows both. Check the generation line to see who supplies you, because that is who your rebate comes through.
Do rebates ever run out?
Yes. Most of these programs are funded from a set budget, and popular ones can pause or close once the money for the period is claimed, then reopen when they are refunded. That is a real reason not to sit on the decision for months. If a rebate you are counting on is close to its funding limit, we will tell you before it affects your plan.
Do these rebates come off my price up front, or do I get them back later?
It depends on the program. Some are applied at the point of sale so your quoted price already reflects them, and others are reimbursed after the install. When we prepare your estimate, we tell you exactly which is which so there are no surprises.
Can I stack more than one rebate?
Yes, and in the Bay Area stacking is common. A provider rebate plus a city rebate is the typical case in cities that offer both, and income-qualified households can layer on larger programs. The rules on what combines with what vary, which is why we check each one against your specific address.
What if my city is not on your list?
You almost certainly still qualify for the provider-level rebate, and possibly income-qualified programs. City rebates are a bonus that some areas offer and many do not. Not seeing your city means your savings come from the other layers, not that there are none.
How do I know the rebate amounts you quote are current?
We track these programs for our service area and confirm the figures for your address at the time we prepare your estimate, rather than relying on a number posted online months ago. If a program changes, we catch it before it affects your quote.
The bottom line
The federal credit is gone, but in California the rebates that matter most were always local, and they are still here. Your clean energy provider sets a base, your city may add to it, and income-qualified programs can go much bigger. The exact total comes down to your address, which is knowable in minutes. Find your provider, check your city, check income eligibility, and claim every layer you are owed. Or let us do all of it for you.
Want your real number? Get a free virtual estimate with every rebate you qualify for already applied, no in-home sales visit required. And if you have not yet, see how much a heat pump actually costs in the Bay Area for the full pricing picture.