TECH Clean California Water Heater Rebates Are Here!

heat pump water heater outside CA home

Does your hot water always run out before you’re done showering? Are you sick of waiting forever for the water to heat up when you turn on the tap? Problems like these are common in old water heaters and usually mean you’re due for an upgrade. 

Replacing your water heater is typically an expensive project, which might be why you’ve been putting it off. But right now, you can save thousands of dollars on a new heat pump water heater with TECH Clean California rebates! 

Keep reading to get the details. 

What Is TECH Clean California? 

TECH Clean California is a statewide initiative that was designed to help accelerate the adoption of clean space and water heating technologies. The initiative offers generous rebates for heat pump heating and cooling systems (including ducted heat pumps and ductless mini split heat pumps) and just added new rebates for heat pump water heaters. You can combine rebates to save a total of $5,100 on heat pump space heating and water heating upgrades!* 

To qualify for rebates, your heat pump water heater must be installed by a TECH Clean California contractor. The Clean Energy Connection makes it easy to find a qualified contractor. You can search our free, online directory to look for participating contractors in your area and find the right fit for your project. 

There are limited funds available for the water heater rebates in California and they won’t last forever. Find a participating heat pump water heater installer today to upgrade your water heater and secure your rebate! 

Save up to $3,800 with Heat Pump Water Heat Rebates! 

The TECH Clean California heat pump water heater rebates start at $3,100. Larger heat pump water heaters are eligible for higher rebate amounts—up to $3,800. To qualify for a higher rebate amount, the water heater must have a tank size larger than 55 gallons. 

Your water heater is one of the most important appliances in your home and these rebates make it possible to upgrade at a very low cost. In many cases, the rebate will cover your entire heat pump water heater installation! 

Electrical Work Bonus Rebate 

Electrical work is often required for a heat pump water heater installation, and TECH Clean California offers a bonus rebate to help cover these costs. Qualifying electrical work is eligible for an additional rebate worth 50% of the cost, up to $2,000. Qualifying work includes: 

  • Replace, upgrade, or relocate main service panel
  • Install smart load center/circuit breaker
  • Install subpanel
  • Upgrade feeder and/or secondary disconnect/dwelling unit main disconnect

TECH Clean California Heat Pump Water Heater Equity Incentives 

Residential customers who meet certain home income thresholds are eligible for equity incentives, which are higher than the standard heat pump water heater rebates. The higher incentives are available to eligible customers in single-family and multi-family homes. 

Eligible customers in single-family homes are eligible for a base rebate of $4,185 and a maximum equity incentive of $10, 385. Multiple-family property owners are eligible for a base rebate of $1,000 per kWh and a maximum incentive of $300,000 per project. 

For multifamily building owners, the incentive applicant must provide a copy of the deed restriction for the building to qualify. No action is required from tenants. 

For single-family homes (four dwelling units or less), the occupants must have a household income that’s either: 

  • At or below 80% of the area’s median income 
  • At or below 250% of the federal poverty level

To be eligible for the heat pump water heater rebates in California, customers must agree to enroll in an eligible DR program and be on a time-of-use rate plan. Heat pump water heaters must meet program eligibility requirements to qualify for rebates. 

*Offers are subject to change or cancellation. Visit TECH Clean California for up-to-date rebate & incentive amounts.

How to Tell If You Need a New Water Heater 

Not sure whether you need a new water heater? Look out for these signs: 

  • Water doesn't get hot enough 
  • Hot water runs out quickly 
  • Rusty water coming from faucets 
  • Water heater is over 15 years old 
  • Water puddling around the tank 
  • Water heat needs frequent repairs 

When you upgrade to a new heat pump water heater, you’ll have consistent hot water available on demand. Heat pump water heaters are safer, more energy efficient, and better for the environment than gas water heaters.

Find a TECH Clean California Contractor & Get Your Rebate 

Don’t miss out on this great chance to save on a new heat pump water heater! Use the Clean Energy Connection’s free online directory to find a participating heat pump water heater installer near you today. We connect homeowners with vetted clean energy contractors who have undergone comprehensive evaluations, including regular license checks and customer satisfaction surveys.


Don’t miss out on rebates! Schedule your heat pump water heater installation today.