Program helps Sacramento customers save energy, improve comfort and cut carbon
Sacramento, Calif. – SMUD announced new, increased rebate levels for residential heat pump installations beginning this month.
These enhanced rebates represent an increase in existing programs. They're designed to help customers transition to clean, efficient electric heating and cooling technology while offsetting the recent expiration of federal tax credits and state incentive programs.
Incentives
- Up to $4,000 for gas-to-electric heat pump water heater conversions.
- Up to $3,000 for gas-to-electric heat pump HVAC system conversions.
- $1,000 for electric-to-electric heat pump water heater and heat pump HVAC upgrades.
"Deliver Real Savings"
"These rebates demonstrate our commitment to making clean energy affordable and accessible for every Sacramento family," said Lora Anguay, Chief Zero Carbon Officer. "Heat pumps are a reliable technology that reduce carbon emissions, boost energy efficiency and deliver about $500 a year in real savings. By increasing our rebates, we're removing cost barriers and helping our community take part in our shared clean energy future."
SMUD's heat pump programs are a cornerstone of our 2030 Zero Carbon Plan and goal to electrify 154,000 homes by 2030. Heat pumps are highly efficient compared to traditional gas systems, providing heating and cooling while cutting energy bills, improving indoor comfort and reducing household carbon footprints.
Through SMUD's Advanced Home Solutions program, more than 23,000 gas-fired space and water heating systems have already been replaced with high-efficiency electric heat pumps.
The increased rebates come at a critical time, as recent federal tax credits expired on Dec. 31, 2025, and state incentive programs have run out of funding.
For more information about SMUD's heat pump rebates and to apply, visit smud.org/GoElectric.