Incentives
Heat Pump Rebates
& Incentives
For qualifying heat pump installations and all-electric HVAC upgrades, 3rdGen helps homeowners understand available rebate and incentive pathways. Rebates should support the project, not define it — the goal is still a properly designed HVAC system that fits the home.
Bay Area programs
Available Heat Pump Rebate Programs
Bay Area homeowners may be eligible for rebates through local, utility, state, and federal programs. Depending on the program, rebates may apply to ducted heat pumps, ductless mini splits, central heat pump systems, heat pump water heaters, electrical panel upgrades, and home electrification projects.
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Marin & Contra Costa County
MCE Heat Pump Rebates
Eligible Marin and Contra Costa County homeowners may qualify for rebates starting at $2,000, with additional incentives based on home size. MCE rebates require approval before installation and are available only to qualifying MCE customers.
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Regional · BAAQMD
Bay Area Clean HEET Program
Bay Area homeowners replacing an eligible wood-burning stove, fireplace insert, pellet stove, or open-hearth fireplace with a ducted or ductless electric heat pump may qualify for $3,000–$6,500, with additional low-income incentives available.
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Alameda Municipal Power
City of Alameda Heat Pump Rebate
Alameda Municipal Power customers may qualify for residential heat pump rebates when replacing eligible non-electric heating equipment with a qualifying heat pump HVAC system.
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City of Piedmont
City of Piedmont Electrification Rebates
Piedmont residents may qualify for electrification rebates for heat pump HVAC systems, heat pump water heaters, and electrical panel upgrades.
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City of Pinole
Pinole Energy Enhancement Rebate
Pinole homeowners may qualify for local energy enhancement rebates that can help offset the cost of a qualifying heat pump installation.
How we help
Save on Heat Pump Installation
Upgrading to a high-efficiency heat pump can help lower energy use, improve year-round comfort, add air conditioning, and support the transition from gas heating to electric HVAC. Rebates may help reduce the upfront cost of heat pump installation , furnace replacement , ductless mini split installation, or whole-home HVAC electrification.
3rdGen can help review your project, check available programs in your city or county, verify heat pump eligibility, and help you understand what documentation may be required before installation begins.
Related services
Related service areas
Before you install
Important Rebate Notice
Rebate availability is not guaranteed. Program rules, eligibility requirements, funding levels, and deadlines can change at any time. Many heat pump rebate and electrification incentive programs require pre-approval, income verification, approved equipment, final permits, photos, invoices, and other documentation. Starting installation before approval may make your project ineligible for certain rebates.
Common Questions
Common questions
Heat Pumps
Can a heat pump replace my furnace?
Yes — whole-home gas-to-electric conversions are a core part of our work. We size heat pumps for calculated heating and cooling loads, plan electrical capacity, and coordinate distribution — not a same-size swap based on your old furnace label.
Do heat pumps work in Bay Area weather?
Modern cold-climate heat pumps perform well in Bay Area winters and summers when sized with Manual J and installed with proper distribution. Coastal microclimates and inland heat spikes are why we engineer each home — not assume one product fits all.
What brands do you install?
We are Mitsubishi Electric specialists and design around the best technology for your home — ducted, ductless, or mixed layouts sized with Manual J/S/D, not rule-of-thumb equipment swaps.
Load Calculations
What is a Manual J load calculation?
Manual J is the ACCA standard for calculating heating and cooling loads room by room based on your home’s envelope, windows, orientation, and local climate — not square footage rules of thumb. We use it to size equipment and duct systems so your system performs in real Bay Area conditions.
Why not size HVAC equipment by square footage?
Square-footage rules ignore insulation quality, window area, shading, air leakage, and how your home actually gains and loses heat. Oversized equipment short-cycles, wastes energy, and struggles with comfort and humidity. Manual J matches capacity to measured loads.
What are Manual S and Manual D?
Manual S selects HVAC equipment that matches Manual J loads without oversizing. Manual D sizes and lays out duct systems for proper airflow and static pressure. Together with Manual J, they form the engineering backbone of our design-build installs.
Cost, Rebates & Financing
Do I need rebate approval before installing a heat pump?
Many rebate programs require approval before installation. Starting work before approval may make your project ineligible, so eligibility should be reviewed before the project begins.
What types of systems may qualify for heat pump rebates?
Depending on the program, qualifying systems may include ducted heat pumps, ductless mini splits, central heat pump HVAC systems, heat pump water heaters, and related electrical upgrades.
Are Bay Area heat pump rebates guaranteed?
No. Rebate availability depends on location, utility provider, income eligibility, equipment requirements, funding availability, and program approval.
Can 3rdGen help with rebate documentation?
Yes. 3rdGen can help identify available rebate programs, confirm qualifying equipment, and prepare required documentation such as permits, invoices, photos, and equipment information.
Are rebates available for heat pump projects?
Many Bay Area projects qualify for federal tax credits, TECH Clean California, HEEHRA (income-qualified), and utility programs we support — including SJCE EcoHome Network, SVCE FutureFit, and Peninsula Clean Energy approved-contractor rebates — when equipment, sizing, and documentation meet current requirements. We design installs for program eligibility and provide documentation — we do not issue rebates or guarantee specific dollar amounts.
Is financing available?
We are not a lender. We provide scope clarity, invoices, and installation documentation that support financing applications. Homeowners often use Synchrony or their own bank or credit union — we help you understand what paperwork your lender typically needs.
Service Area
What areas do you serve?
We serve homeowners across the San Francisco Bay Area — East Bay, San Francisco, Marin, Peninsula, Lamorinda, Walnut Creek, Tri-Valley, and South Bay — on design-build residential HVAC projects. We do not provide emergency repair or maintenance on existing systems we did not install.
Process
Do you help with permits?
Yes. Permit, Title 24, and inspection coordination are part of our design-build scope — not a surprise add-on at the end. We retain load calc and equipment documentation your jurisdiction and rebate programs commonly require.
Do you offer HVAC repair, maintenance, or emergency service?
No. We focus on project-based residential HVAC — heat pump installations, full-system replacements, remodels, retrofits, new construction, and ADUs. We do not provide emergency repair, routine maintenance, tune-ups, filter changes, or small service calls.
Company
What is the difference between 3rdGen Building Systems and 3rdGen Heating & Cooling?
3rdGen Building Systems is the licensed mechanical contractor for commercial, industrial, and project-team work. 3rdGen Heating & Cooling is the residential HVAC division / DBA focused on homeowner design-build — heat pumps, remodels, ADUs, and whole-home replacements.