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
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: September 14, 2026
Marin & Contra Costa County
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. Subject to current program eligibility and funding.
May apply to qualifying heat-pump HVAC replacements for MCE customers.
Regional · BAAQMD
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. Additional low-income incentives may be available. Subject to current program eligibility and funding.
May apply to wood, pellet, or fireplace replacement with a ducted or ductless heat pump.
Alameda Municipal Power
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. Subject to current program eligibility and funding.
May apply to heat-pump HVAC replacing eligible non-electric heating.
City of Piedmont
Piedmont residents may qualify for electrification rebates for heat pump HVAC systems, heat pump water heaters, and electrical panel upgrades. Subject to current program eligibility and funding.
May apply to heat pump HVAC, heat pump water heaters, and panel upgrades.
City of Pinole
Pinole homeowners may qualify for local energy enhancement rebates that can help offset the cost of a qualifying heat pump installation. Subject to current program eligibility and funding.
May apply to a qualifying heat-pump installation.
Project context
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
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
Practical answers on approval timing, qualifying equipment, and what 3rdGen can help with.
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.
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.
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.
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.
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.
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.
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