California home electrification rebates (2026)

California was first out of the gate with its IRA-funded HEEHRA (Home Electrification and Appliance Rebates) program. It launched broadly in late 2024, ramped through 2025, and fully reserved all single-family funding statewide on February 24, 2026. As of mid-2026, you cannot submit a new single-family HEEHRA application in California.

The state has indicated that HEEHRA multifamily applications are still open, and that additional funding could be allocated if federal disbursements resume — but for single-family homeowners, the headline IRA rebate is closed for now.

This is unusually frustrating because it's been one of the most-covered rebates in the country, and contractors are still quoting it. If a California contractor offers you HEEHRA in 2026 for a single-family home, ask them to show you the active program portal — it won't be there.

• TECH Clean California — the state's heat pump and HPWH incentive program, separate from HEEHRA. Active and well-funded. Pays $1,000–$3,000 for qualifying heat pumps and $200–$1,000 for HPWHs. Income-tiered but not income-gated.
• Self-Generation Incentive Program (SGIP) — battery storage rebates. Tiered by income and equity criteria; up to $1,000/kWh for low-income households.
• Utility rebates from PG&E, SCE, SDG&E, SoCalGas — variable, but generally $300–$2,000 for heat pumps and water heaters, plus EV charger rebates.
• Clean Vehicle Assistance Program — used and new EV grants for income-qualified households, separate from the (expired) federal credit.
• Net Energy Metering 3.0 — solar exports paid at "avoided cost" rather than retail. The math still works, but battery storage is increasingly necessary to make it pencil.

California has the highest residential electricity rates in the continental U.S. — averaging around 30.5¢/kWh statewide, and well over 40¢/kWh on some PG&E tiers. This cuts both ways:

• Good for electrification savings: any kWh you avoid using is worth more here than anywhere else.
• Bad for net costs: running a heat pump on PG&E's standard tiered rate is often more expensive than the gas furnace it replaced, on a per-BTU basis. Heat pumps in California really need to be paired with TOU rate plans and ideally solar to make the operating math work.

The decision factor isn't usually "should I get a heat pump" — it's "what's my electric rate plan, and how do I orient my usage to make it cheap?"

Middle-income household, 2 adults, $110,000 income (about 92% AMI), replacing a gas furnace and AC with a heat pump in PG&E territory:

• HEEHRA: $0 (closed)
• TECH Clean California: $3,000
• PG&E heat pump rebate: ~$1,000
• Federal credit (expired): $0
• Total stack: $4,000 on a typical $17,000 install. Net cost: $13,000.

For a low-income household in the same situation pre-Feb 2026, the same project would have netted close to $11,000+ in rebates. The HEEHRA closure was a big deal.