Heat pumps are incredibly effective. They provide the same amount of ‘heat’ generated by a fossil-fuel powered furnace with ½, sometimes even ¼ of the energy. They work for home space heating, hot water heaters, pool/spa heaters, and even dryers. There is no better way to reduce your home energy usage than by switching to heat pumps. These work like a window air conditioner turned around backwards, literally cooling the outside air (like your freezer) and transferring the heat inside. They usually transfer about 3 kWh of heat energy into your home (or water, or pool, etc.) for each 1 kWh of electricity used – and can provide either AC or heating from the same unit.
The current incentive landscape can seem daunting – and it changes regularly, but there are a lot of rebates out there to make heat pumping easier to access. Here’s a guide based on my own experience to help you find and apply for heat pump incentives in California.
How do you find ones that apply to you? The Switch Is On Incentive Finder is a fantastic resource for finding and filtering incentives. It helps you find the ones that match your specific situation, zip code, and links to, or provides details, on the specifics of each program.
How to apply
If you’re like me and want to go for as many rebates (“stacking” as it’s often called) as possible, staying organized is key. Keep track of purchase windows and specific requirements for each rebate. It takes a little bit of work, but the savings are worth it. Generally, you’ll need:
- Receipts or invoices with specifications of the units you bought
- Photos of before/after
- Any necessary permits
Each rebate program has its own rules. Things like:
- Date of purchase or installation
- The efficiency or type of units
I handled the rebate applications on my own. Some contractors can help, but I’ve had limited success with contractors knowing which rebates apply.
Dealing with challenges
I started installing heat pumps in my home before most of the rebate programs were fully up and running, so I didn’t get as many. If a specific rebate criteria doesn’t fit your situation, keep looking! I found some programs that offered rebates that could be applied after installation. Which resulted in an extra $1,000 rebate for my hot water heater that I hadn’t expected.
Finding which rebates to apply for was the most difficult part. Once identified, most programs have great support to answer questions or request additional information, if needed.
What I saved
- Space Heat Pump:
- $300 (federal, pre-IRA)
- $500 Redwood City Environmental Initiatives (Redwood City)
- Heat Pump Water Heater:
- $1,000 Peninsula Clean Energy (PCE)
- $500 Redwood City
- Main panel update
- $250 Redwood City
I missed out on a $5,000 “whole home electrification” rebate (complete natural gas shutoff) because I installed too soon, but several neighbors took advantage of it after duplicating my setup. Today, if you are in my area, there are additional incentives from TECH Clean California and Pacific Gas and Electric Company, not to mention, IRA federal tax credits. These are all stackable. Always be on the lookout for new incentives anytime you are replacing an appliance – they can make a huge difference.
Tips for going through the process
- Start with Switch Is On: Head over to the site, check out the criteria for the rebates, and start applying.
- Stay Organized: I only had one minor delay due to a missing document. Knowing which documents you need and keeping them organized as you go can save a lot of time and stress.
- Be Patient: Getting your rebate can take anywhere from a couple of days to eight weeks. Redwood City was super quick for me – just two days!
With the incentives in place today, you can make heat pump upgrades more affordable than they seem up front – and certainly cheaper than replacing a component with a natural gas option. Just do your internet sleuthing, keep documents organized, and you’ll be enjoying the savings and comfort in no time.
Written by: Tony Willcox
