Participating Contractors Must
- Have an active California contractors license
- Carry insurance that meets the CSLB coverage amounts
- Have the ability to apply for incentives using a website application system
- Cooperate with inspections or verifications as determined by partner programs
CSLB Licenses
To be eligible for incentives, all contractors must hold an active license in good standing issued by the California State Licensing Board (CSLB) applicable to the work scope, sign the TECH Trade Professional Participation Agreement (TPPA), submit their Certificate of Insurance, and review the onboarding training materials. There are different licensing requirements for water heating and space conditioning incentives, shown in the following table:
| License | Water Heating Incentives | HVAC Incentives |
|---|---|---|
| General B | Yes | Yes |
| C-20 | Yes | Yes |
| C-36 | Yes | No |
We encourage TECH contractors to enroll all subcontractors in the TECH initiative, so that all parties can receive recognition and other participation benefits. However, contractors are allowed to use non-participating subcontractors as stipulated in the participation agreement.
Note: for Electrical Panel incentives, the installation of the electrical panel must be done either by a contractor who hold the appropriate license for both (C-10 electrical + C-20/36 for water heater) OR the contractor must hold a B license allowing them to subcontract out the portion of the job they are not licensed for to a contractor with the appropriate license.
CSLB Guidance on Heat Pump Water Heaters:
Appropriate Classifications for heat pump water heaters: The most appropriate CSLB license classifications for stand-alone installation/repair of heat pump water heaters are C20-Warm Air Heating, Ventilating and Air-Conditioning or C36-Plumbing regardless of the system, or purpose, of the heated water.
It is also appropriate for B-General Building contractors to enter into contracts for the replacement of heat pump water heaters. However, if the scope of work is simply to install/replace a heat pump water heater, a B-General Building contractor would be required to subcontract the work to a C20 or C36 subcontractor unless that B contractor also holds the appropriate additional classification on their license. If the heat pump water heater replacement is part of a larger project (including work in at least two unrelated trades) it would be acceptable for a B-General Building contractor to self-perform the water heater replacement.
Appropriate Classifications for thermostatic mixing valves: The installation of thermostatic mixing valves on heat pump water heaters are appropriate for C20, C36 and B contractors as described above Electrical Work in Connection with the Installations Described Above. It is appropriate for C20 and C36 contractors to self-perform, or subcontract out, any incidental electrical work required to accommodate the replacement of heat pump water heaters, including installing a dedicated circuit for the water heater. Pursuant to Business and Professions Code section 7059 subdivision (a) and California Code of Regulations section 831, it is appropriate for specialty contractors to self-perform, or subcontract out, any incidental/supplemental work in other trades that is essential in completing projects they are otherwise licensed to perform.
If a heat pump water heater installation is being performed by either a C20 or C36 contractor and it requires an upgrade/replacement to the electrical service panel a C10-Electrical contractor is the most appropriate to perform that work under a separate contract. It is also acceptable for a B-General Building contractor to self-perform an electrical service panel upgrade/replacement if the work is part of a heat pump water heater installation/replacement project.
Statutes or regulations referenced in this letter.
- Business and Professions Code section 7057 (General Building Contractor)
- Business and Professions Code section 7059 (a)
- Title 16, Division 8, California Code of Regulations section 831
- Title 16, Division 8, California Code of Regulations section 832.20 (Warm-Air Heating, Ventilating and Air-Conditioning Contractor)
- Title 16, Division 8, California Code of Regulations section 832.36 (Plumbing Contractor)
