TL;DR
- Section 25C: qualifying 2025 installations may still be in the credit period. Property placed in service after December 31, 2025 is not. Do not promise a federal credit for a 2026 install. Annual limit for qualified heat pumps and heat pump water heaters was $2,000. Nonrefundable. Report QMID for qualifying 2025 property. Tax professional for tax questions.
- TECH Clean California single-family heat pump HVAC and heat pump water heater incentives were fully reserved and stopped accepting new reservations on November 14, 2025.
- HEEHRA single-family rebates were fully reserved statewide as of February 24, 2026. No new single-family income-verification applications were being accepted. Existing approved reservations may continue. A submitted request is not approved funding.
- As of July 15, 2025, a project cannot receive both a TECH incentive and a HEEHRA rebate.
- SDG&E Golden State Rebates Program retail rebate offerings have ended. Confirm any other SDG&E program on the current rebates page. Climate Pros SD does not file rebates. The matched contractor might, if they are enrolled in a live program.
Heat pump rebates are the most confusing corner of California HVAC in 2026. Contractor ads still quote 2024-2025 stack numbers. Those numbers are not your 2026 out-of-pocket.
Climate Pros SD is a referral service. We match you with licensed, independent HVAC professionals. We do not set prices, pay rebates, or guarantee awards.
Programs change. Recheck IRS, SDG&E, TECH, and CEC pages before you purchase. Not tax advice.
What the programs actually are
1. SDG&E
SDG&E says the Golden State Rebates Program retail rebate offerings have ended. Name that program. Do not generalize the ending to every SDG&E offering. A leftover product table on a webpage is not evidence of a current offer.
Confirm live programs, contractor requirements, and equipment lists at sdge.com/rebates. This site will not publish invented equipment rebate dollars, mini-split-per-head caps, or bill-credit timelines.
2. Federal 25C tax credit (not for 2026 placed-in-service dates)
Qualifying 2025 installations may fall within the Section 25C Energy Efficient Home Improvement Credit period. Property placed in service after December 31, 2025 does not.
For qualifying property placed in service in 2025, the taxpayer must report its QMID. The IRS says the annual limit for qualified heat pumps and heat pump water heaters was $2,000. The credit is nonrefundable. Direct tax questions to a tax professional.
Source: IRS Energy Efficient Home Improvement Credit
3. TECH Clean California
TECH Clean California single-family heat pump HVAC and heat pump water heater incentives were fully reserved and stopped accepting new reservations on November 14, 2025. Availability, enrollment, product eligibility, reservation, approval, and payment are separate conditions. Reserved funds and an approved reservation are not the same thing.
Source: TECH Clean California incentives
4. HEEHRA (California-administered)
HEEHRA single-family rebates were fully reserved statewide as of February 24, 2026. No new single-family income-verification applications were being accepted. Existing approved reservations may continue through the process. Do not describe a waitlist or submitted request as approved funding. Recheck status before publication or purchase.
HEEHRA single-family program design permits up to $8,000 below 80 percent AMI and up to $4,000 from 80 to 150 percent AMI for qualifying replacement of an existing primary heating source with a heat pump. Reservations must be approved before installation. State those as program caps and conditions, not currently available money or guaranteed awards. HEEHRA is not retroactive.
TECH reports multifamily HEEHRA funding is available, while new HEEHRA Multifamily Application Stage 1 submissions are paused during processing of existing applications. Available budget does not mean a new Stage 1 application can currently be submitted.
Sources: CEC IRA residential energy rebate programs and TECH HEEHRA rebate rules
You cannot stack TECH and HEEHRA
As of July 15, 2025, a project cannot receive both a TECH incentive and a HEEHRA rebate. Apply that rule to the same project. Recheck before anyone advises a stack.
The real math in 2026
There is no honest “net cost below $5,000” worksheet on this page. A typical install price is whatever the licensed contractor quotes for your house.
- 2026 placed-in-service heat pump: no 25C credit.
- New TECH single-family reservation: not after November 14, 2025.
- New HEEHRA single-family income verification: not after February 24, 2026.
- SDG&E: confirm live programs. Golden State retail offerings have ended.
A heat pump can still be the right replacement on comfort and operating cost. Do not plan a 2026 budget around the old full stack.
What gets denied (process, not a price list)
Common failure modes, without inventing SEER floors or AMI dollar cutoffs for San Diego County:
- Equipment that does not meet the live program’s product list
- No approved reservation where the program requires approval before install (HEEHRA)
- Trying to collect TECH and HEEHRA on the same project
- Claiming 25C for a 2026 placed-in-service date
- Missing QMID on a qualifying 2025 25C claim
- DIY paperwork on a program that requires a participating contractor (ask that contractor; we are not the installer)
Operating cost after incentives
The incentive conversation is incomplete without how you use the system. A heat pump moves both heating and cooling onto electricity. SDG&E time-of-use on-peak on current listed residential plans is 4 p.m. to 9 p.m. Confirm your plan. This page will not invent annual operating-cost ranges.
DOE says actual efficiency savings vary with usage.
How claiming actually works
On an install through a matched licensed contractor:
- The quote should show model numbers and AHRI ratings.
- If a state program still applies to you, it is because you already have an approved reservation, or a currently open utility program accepts the job. Confirm before you sign.
- Installation, then whatever paperwork that live program requires.
- If you installed in 2025, you claim 25C on the 2025 return with QMID. There is no 25C filing for a 2026 placed-in-service date.
- Tax questions go to a tax professional. Rebate questions go to the program administrator and the contractor who enrolled.
Climate Pros SD does not include “rebate admin” in a brand install. We do not install.
FAQ
Can I stack rebates in 2026?
You can combine whatever is currently funded and allowed. You cannot stack TECH and HEEHRA. You cannot add 25C to a 2026 placed-in-service date.
What if my household is above 150% AMI?
HEEHRA’s higher single-family cap was for 80 to 150 percent AMI at up to $4,000, and that single-family program is fully reserved anyway. 25C is gone for 2026 installs. Confirm any open SDG&E equipment program separately.
Is the IRA HEEHRA rebate still available?
Not for new single-family income-verification applications as of February 24, 2026. Existing approved reservations may continue. Recheck CEC and TECH before you purchase.
Do I need to verify my income tier?
If you are trying to use an income-qualified program that is still accepting your application type, yes. HEEHRA single-family is not accepting new income-verification applications. HUD’s AMI lookup is the usual reference when a program is open.
Can I use a rebate for a mini-split instead of a ducted heat pump?
Only if the live program’s product list says so. Confirm before you commit. This site will not publish a per-head dollar cap.
How long does an SDG&E rebate take?
Ask the participating contractor and SDG&E. This site will not invent a 6 to 10 week bill-credit window.
What this means for you
If you’re thinking about heat pump HVAC in 2026, go in with clear eyes. 25C is not a 2026 install credit. TECH single-family closed new reservations on November 14, 2025. HEEHRA single-family reserved on February 24, 2026. They do not stack. Golden State retail offerings have ended.
Have a licensed contractor confirm what is actually funded for your situation before you build a budget around any rebate. Call (442) 777-6440 or request a match. Our heat pump service page has scope. Our BTU calculator is a ballpark size tool, not a rebate.
Sources: SDG&E rebates · IRS 25C · CEC IRA rebates · TECH incentives · TECH HEEHRA rules
Verify current program terms before a purchase decision. Not tax advice.
Related services: AC repair and AC installation. Local coverage: all 67 cities we cover in San Diego County.