Rebates & Incentives

Heat Pump Rebates & Incentives

Heat-pump rebates and incentive programs may help offset the cost of eligible Bay Area HVAC projects. 3rdGen helps homeowners identify programs that may apply, understand basic requirements, and coordinate available incentive paperwork as part of the project.

Bay Area programs

Available Heat Pump Rebate Programs

Several regional, utility, and municipal programs may provide incentives for qualifying heat-pump installations. Availability, funding, equipment requirements, income requirements, and project eligibility can change.

Last reviewed: November 10, 2026

  • Statewide

    California Home Electrification Rebates (HEEHRA) & TECH Clean California

    Single-family HEEHRA rebates were fully reserved statewide as of February 24, 2026, and the administrator is no longer accepting new income verifications. Later requests go on a waitlist and only qualify if the heat pump is installed after the reservation is approved. We could not confirm that other TECH Clean California single-family heat pump incentives are currently open. Check availability before planning around either program.

    Not currently something to budget around. Installing before a reservation is issued makes a project ineligible.

    Program details

  • Marin & Contra Costa County

    MCE Heat Pump Rebates

    MCE customers may qualify for a heat pump heating and cooling rebate of up to $400 per 500 square feet of home. The work must go through a participating contractor, and rebates cannot be applied to a project retroactively, so equipment must not be installed before the rebate is submitted. MCE lists no deadline. Subject to current program eligibility and funding.

    May apply to qualifying heat-pump HVAC replacements for MCE customers.

    Program details

  • 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 an electric heat pump may qualify for up to $10,000–$15,000, depending on the device and its age, plus up to $10,000 more for qualifying low-income households. The current round closes March 10, 2027. Air District approval is required before any work starts, including deposits and equipment purchases. Subject to program eligibility and funding.

    May apply to replacing an in-use wood stove, insert or pellet device made before 2020, or an open-hearth fireplace of any age, with a heat pump.

    Program details

  • Alameda Municipal Power

    City of Alameda Heat Pump Rebate

    Alameda Municipal Power residential customers replacing a natural gas furnace with a qualifying heat pump may qualify for a rebate of up to $2,000. The old gas heating must be decommissioned, the heat pump must meet minimum efficiency ratings, and the application is due within 6 months of purchase. Limited to one HVAC rebate every 10 years. First come, first served while funds last, and applying does not guarantee payment.

    May apply to heat-pump HVAC replacing gas heating at an existing Alameda Municipal Power home.

    Program details

  • City of Piedmont

    City of Piedmont Electrification Rebates

    Piedmont heat pump heating and cooling rebates are now limited to moderate- and low-income households (moderate means 120% of Alameda County median income or less). Amounts are $1,500 (moderate) or $3,000 (low) for a ducted system or ductless with 3 or more indoor units, and $750 or $1,500 for ductless with 1 or 2 indoor units. A multi- or variable-speed compressor is required and the old gas or other fuel heating must be replaced. Heat pump water heater rebates are separate. First come, first served, and funding is not guaranteed.

    May apply to qualifying heat pump HVAC for income-qualified Piedmont households; standard-income households are not eligible for the HVAC rebate.

    Program details

  • City of Pinole

    Pinole Heat Pump Permit Fee Rebate

    For a limited time, Pinole property owners with 1 to 4 units may receive a rebate equal to 100% of paid building permit fees when replacing gas space heating or a gas water heater with a heat pump. The rebate is paid after the permit is finaled. First come, first served and subject to funding; the City may change or end it at any time. This is a permit fee rebate, not an equipment rebate.

    May apply to permit fees on a qualifying gas-to-heat-pump replacement in Pinole.

    Program details

Residential Mitsubishi heat pump outdoor unit and air handler

Project context

Save on Heat Pump Installation

A rebate is only one part of a successful HVAC project. Equipment still needs to be selected and sized for the home, installed correctly, permitted where required, and properly started up and commissioned.

3rdGen works with high-efficiency residential heat-pump systems, including Mitsubishi Electric, for Bay Area homes. Rebates may help offset qualifying installation costs; they do not replace a proper design. See residential heat pump installation for how we design and install the system. Some homeowners also review HVAC financing alongside incentives.

Before you plan around a rebate

Important Rebate Notice

Rebate programs, incentive amounts, eligibility rules, approved equipment lists, and available funding can change without notice. Final eligibility is determined by the applicable program administrator, utility, municipality, or other issuing organization.

3rdGen can help identify programs that appear relevant to your project, but incentives should not be considered guaranteed until eligibility has been confirmed. If an incentive matters to your project budget, tell us early so it can be considered during equipment selection and project planning.

FAQ

Common Questions

Practical answers on approval timing, qualifying equipment, and what 3rdGen can help with.

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 heat pumps may qualify for rebates?

Depending on the program, qualifying systems may include ducted heat pumps, ductless mini splits, and central heat pump HVAC systems. Some programs also cover related work such as heat pump water heaters or electrical panel upgrades.

Are Bay Area heat pump rebates guaranteed?

No. Availability depends on location, utility or program administrator, income eligibility, approved equipment, remaining funding, and program approval. Incentives should not be treated as guaranteed until eligibility has been confirmed.

Can 3rdGen help with rebate documentation?

Yes. 3rdGen can help identify programs that may apply, confirm qualifying equipment, and coordinate available incentive paperwork as part of the project—such as permits, invoices, photos, and equipment information.

Can I combine multiple heat pump incentives?

Some projects may qualify for more than one program, but stacking rules vary. Each program administrator sets its own requirements. Combining incentives is not guaranteed and should be confirmed before you count on more than one source.

Do rebates affect which HVAC equipment I can install?

They can. Many programs require approved equipment lists, efficiency ratings, or specific installation conditions. If an incentive matters to your budget, it should be considered during equipment selection—not after the system is already chosen.

Still have a question?

Tell us about your heat pump project

Discuss Rebates for Your Project

Project Inquiry

Tell Us About Your Heat Pump Project

Whether you are replacing an older HVAC system or planning a larger residential upgrade, tell us what you are working on. We can review the project and discuss any incentive programs that may be relevant.

We design and install complete systems in the East Bay, San Francisco and Marin. We do not do repair, service calls or maintenance.

Project category
Project type
Timeline