The short answer
In October 2026, the big three are closed to most homeowners:
| Program | Status, checked October 12, 2026 |
|---|---|
| Federal tax credit (25C), up to $2,000 | Ended. Covers installs before December 31, 2025 only. |
| TECH Clean California, single-family | Fully reserved since November 14, 2025. Not taking reservations. |
| California HEEHRA, single-family | Fully reserved statewide since February 24, 2026. Waitlist only. |
What's left is local: your electric utility, your community choice supplier, or your city. Some of those are generous. They depend entirely on your address.
Where the money still is
Three examples, each read off the program's own page:
- SMUD (Sacramento). Replacing gas: $3,000 for 50 gallons or more, $3,500 for 65, $4,000 for 80. Replacing electric: $1,000. Plus $2,000 toward a panel upgrade if you're switching from gas. A SMUD Contractor Network contractor submits it.
- WestLight Energy (San Mateo County, formerly Peninsula Clean Energy). Up to $4,000 replacing gas, for installs completed September 1 to October 31, 2026. $500 replacing an electric water heater. You must own the home.
- City of Redwood City. $500 replacing a gas water heater, from July 1, 2026 to June 30, 2027, while funds last. Homeowners only.
Some homes fall under more than one. Redwood City sits inside WestLight's territory, for example. Check each program's rules on combining them.
Our free water heater calculator lists the rebates for your ZIP code, alongside what a heat pump would save you on your own electric plan.
Installing first and applying later is how people lose a rebate.
Do it in this order
- Check before you buy. Redwood City asks you to confirm eligibility before purchasing. A HEEHRA waitlist spot only counts if the heater goes in after approval.
- Pick a contractor the program accepts. SMUD's rebate has to come through its Contractor Network.
- Pull the permit. SMUD and Redwood City both require a permitted install.
- Keep every receipt and the model number. Programs check the exact unit.
Golden State Rebates: unconfirmed
Golden State Rebates, an instant discount at participating retailers, is still listed by rebate finders. Its website didn't load for us on October 12, 2026, so we can't confirm it's open or quote an amount. Ask the retailer at checkout.
Is it worth it without a rebate?
Often, yes. A rebate pays for part of the install once. The savings come every month after that. Replacing an electric element, a heat pump uses about a quarter of the electricity. Replacing gas, it depends on your gas and electric rates.
How much depends on your rate plan, how many people live with you, and what you're replacing. That's what the calculator works out.
Smarter water heating, on the same screen as your solar
The WattHacker app connects to Rheem EcoNet heat pump water heaters (A.O. Smith and GE are in early pilot). It shows when yours is heating, what it's set to, and the schedule it's following, and it lets you change the temperature or boost it. With the WattHacker monitor on your solar, you can see whether your hot water is being made from your own sunshine.
- Have SunPower or Enphase solar? The WattHacker monitor is $50, no subscription. It puts your hot water and your solar on one screen.
- No extra hardware for the water heater. You sign in with the account you already use for your heater's app.
- The WattHacker monitor reads your SunPower or Enphase solar directly, so heating time and solar production sit on the same clock.
- Built by someone who heats his own water this way.
Still have questions about your own system? I'll go through it with you — your panels, your bill, and what's worth doing about it.
Book an energy reviewAre your panels installed by SunPower or Enphase? See how it works for SunPower or Enphase, or see a demo.
Real panels, real production.
Common questions
Is there still a federal tax credit for a heat pump water heater?
Not for one installed in 2026. The IRS says the Energy Efficient Home Improvement Credit (25C) applies to property placed in service from January 1, 2023 and before December 31, 2025. It was worth up to $2,000 a year for a heat pump water heater. If yours was installed in 2025, it belongs on your 2025 tax return.
Is TECH Clean California still giving heat pump water heater rebates?
Not for single-family homes. TECH Clean California says its single-family heat pump water heater and heat pump HVAC incentives have been fully reserved since November 14, 2025, and it is not accepting new reservations (checked October 12, 2026).
What happened to California's HEEHRA rebates?
California's HEEHRA single-family rebates were fully reserved statewide as of February 24, 2026. Reservations made after that date go on a waitlist, and a waitlisted project only qualifies if the heat pump is installed after its reservation is approved. Installing first and applying later loses the rebate.
Does PG&E give a rebate for a heat pump water heater?
It depends more on where you live than on PG&E. PG&E's rebate page didn't load for us on October 12, 2026. Local programs in PG&E territory do: in San Mateo County, WestLight Energy pays up to $4,000 for one replacing a gas water heater, for installs completed September 1 to October 31, 2026. Our free calculator lists what your ZIP code qualifies for.
How much is the SMUD heat pump water heater rebate?
SMUD lists $3,000 for a 50-gallon or larger heat pump water heater replacing a gas one, $3,500 for 65 gallons or more, and $4,000 for 80 gallons or more. Replacing an electric water heater is $1,000. A gas-to-electric switch can add $2,000 toward a panel upgrade. A SMUD Contractor Network contractor submits it (checked October 12, 2026).
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