Last updated

September 24, 2024

Navigating the maze of rebates: my journey to a fully electric home

By The Switch Is On team

Navigating the maze of rebates: my journey to a fully electric home

Key takeaways

  • EmailFinding all available rebates involves extensive research across various sources. The Switch Is On website is a valuable resource for up-to-date information.
  • EmailUnderstanding eligibility for multiple rebate programs requires attention to documentation and deadlines. Use a spreadsheet to track applications and required documents.
  • EmailThe initial cost of a heat pump installation ($17,600) was significantly reduced to $2,600 out-of-pocket after rebates, further decreased to $600 with tax credits, and I only pay $83/month of a $10,000 zero-interest loan.

Discovering rebates

When I embarked on my journey to upgrade my home with a heat pump appliance, I was eager but overwhelmed. The first step was to uncover the available rebates, and I quickly found myself immersed in a sea of information. I started with BayREN, my local regional energy network, which led me to discover rebates from my local Community Choice Aggregator (CCA), Peninsula Clean Energy. To ensure I wasn’t missing anything, I also consulted The Switch Is On website, which introduced me to the California Energy-Smart Homes (CAESH) program. This additional incentive was the final push I needed to commit to an all-electric home.

Determining eligibility

Understanding which rebate programs I qualified for was no small feat. It involved extensive reading of eligibility documentation, cross-referencing various California programs, and a lot of communication with representatives from each entity. The process was time-consuming but essential to ensure I met all the requirements.

Application process

The documentation required for each rebate varied. Peninsula Clean Energy was straightforward, needing only a photo of a capped gas line and the contractor’s invoice. In contrast, CAESH was meticulous, demanding before-and-after photos of each appliance, product labels, installation locations, and receipts for the heat pump dryer, induction stove, and electrical work, which were projects I conducted concurrently with my heat pump install.

Managing multiple rebate applications became an administrative headache, so I created a spreadsheet to track everything, ensuring I stayed organized and met all deadlines. Each program had unique eligibility criteria. For instance, BayREN and CAESH rebates came from the same funding source, preventing me from overlapping funding for similar measures. I had to subtract the rebates received from BayREN from my total amount from CAESH.

Overcoming challenges

With no unified process across the various entities, coloring between the lines of each application required a lot of focus—one small forgotten receipt or photo ran the risk of not receiving the rebates I sought. BayREN required using participating contractors, which limited my options. Peninsula Clean Energy’s loan program only applied to a short list of contractors with barely any overlap to BayREN. As for the cherry on top, combing Yelp and Google reviews to find out which ones could perform quality work and participate in each program required perseverance, meticulous planning, and honestly a little luck.

Financial impact

So was it worth it? Let the numbers tell the story. My pre-incentive invoice for the heat pump installation was $17,600. Here’s how the incentives broke down:

  • BayREN: $1,000 post-install rebate
  • Peninsula Clean Energy: $4,000 post-install rebate
  • Peninsula Clean Energy: $10,000 automatically applied loan (0% interest, 10-year monthly payback)

After these incentives, my out-of-pocket cost was reduced to $2,600. After the $2,000 energy efficient appliance tax credit, this further decreased to $600. Not bad! And while sometimes I still think it only cost me $600, I still pay the $10,000 loan monthly, which amounts to $83/month.

Tips and advice

The landscape of rebates and incentives is a little different from when I began my heat pump journey, even only one year later. My advice is this: For anyone starting the rebate application process for a heat pump in California, begin with The Switch Is On. It provides a comprehensive and up-to-date overview of the all-important available incentives. Be prepared for regional variations, for example the City of Piedmont offers $1,500 and Palo Alto has rebates for heat pump water heaters but not heat pumps used for heating and cooling. Knowing someone who has gone through the process would have been invaluable, so I encourage you to speak with friends, family, neighbors, and work mates.

Final thoughts

The journey to upgrade my home with a heat pump appliance was complex but rewarding. The rebates and incentives significantly reduced my costs, which made the transition to an all-electric home not only financially feasible, but also a feat I managed to complete in less than four months. Despite all the hard parts, I can confidently say the end result was worth the effort. If you’re considering a similar upgrade, take the time to research, stay organized, and don’t hesitate to reach out for help. I wish you a happy and healthy home!

Written by: Joseph C.