SMUD raised these rebates in February 2026, saying federal tax credits expired on 31 December 2025 and "state incentive programs have run out of funding" (SMUD release, 18 February 2026).
The rebates
| Measure | SMUD rebate |
|---|---|
| Heat pump water heater, gas to electric, 50+ gallons | $3,000 |
| Heat pump water heater, gas to electric, 65+ gallons | $3,500 |
| Heat pump water heater, gas to electric, 80+ gallons | $4,000 |
| Heat pump water heater, electric to electric | $1,000 |
| Variable-stage heat pump HVAC, gas to electric | $3,000 |
| Two-stage heat pump HVAC (15.2 SEER2 min.), gas to electric | $2,000 |
| Heat pump HVAC, electric to electric | $1,000 |
| Go Electric bonus / panel upgrade (with a gas-to-electric job) | $2,000 |
| Seal and insulate package | Up to $3,000 |
Source: SMUD's Improve Home Efficiency page; the electric-to-electric HVAC figure is from the February 2026 release. Rebates can be stacked with statewide and federal incentives where any remain, "subject to availability of funding" and paid first come, first served.
A household converting both a gas furnace (variable-stage) and a 50-gallon gas water heater could reach $3,000 + $3,000 before any panel bonus. The panel bonus requires a gas-to-electric conversion; SMUD's page lists it under both the HVAC and the water heater package, so ask your contractor whether it can be claimed once or twice on your job.
The contractor rule
SMUD's page sets out who does what:
- Rebates "must be submitted by a qualified participating contractor through SMUD's Contractor Network". Find one at smudcontractornetwork.org.
- The contractor is responsible for the building permit and HERS testing; SMUD tells customers to ask whether those fees are in the proposal.
- A local building inspector checks the work against code, and if the heating and cooling system changes, SMUD sends a HERS rater to confirm it works as designed.
- Contractors follow Building Performance Institute standards.
- Payment typically goes out "within 2 weeks of the approval date" of the final paperwork; phased projects must be finished within five years of the first application.
So the rebate depends on two things you can check: the contractor is in the network, and the County permit is finaled. For the permit itself, see Sacramento County HVAC permit and Sacramento County water heater permit; for picking a firm, hiring an HVAC contractor in Sacramento County.
What unincorporated Sacramento County permits show
| Measure | HVAC | Water heater | Electrical (incl. panels) |
|---|---|---|---|
| Permits on homes, October 2023 to September 2026 | 7,937 | 3,553 | 4,054 |
| Firms | 581 | 365 | 936 |
| Usual filed value | $15,268 | $3,695 | $3,800 |
| Middle half of firms' usual value | $10,000 to $15,950 | $2,385 to $4,500 | $3,000 to $4,650 |
| Usual days to final | 56 | 38 | 56 |
| Permits that reached a final | 84.1% | 71.7% | 79.8% |
| Firms with an active CSLB license match | 81.8% | 86.6% | 85.1% |
| Busiest month | July | February | September |
The usual HVAC permit was filed at $15,268, so a $3,000 rebate is a meaningful share of a typical job. The water heater numbers carry a warning: only 71.7% of water heater permits reached a final, the lowest of these three trades, and SMUD's rebate needs the inspected job. Ask the installer to book the final and send you the result. HVAC permits peak in July, water heaters in February; those are the months installers are busiest.
24 HVAC firms with five or more permits filed none in the last 12 months, and 10 had a matched license that was no longer active. Check both before signing.
Compare Sacramento County HVAC contractors by permits →
Water heater installers are on Sacramento County water heater contractors, with filed values on Sacramento County water heater cost and Sacramento County HVAC cost.
What this does not tell you
Our file covers unincorporated Sacramento County permits, not the cities of Sacramento, Elk Grove or Citrus Heights. We cannot see which permits were heat pumps rather than gas or AC replacements, or which got a SMUD rebate. Filed values are the contractor's figure on the permit, not the final price. SMUD's page gives no end date for these amounts; check it, or ask your network contractor, before you sign.
How we know this
Rebate amounts and rules are quoted from SMUD's Improve Home Efficiency page and its 18 February 2026 news release, read 23 October 2026. Permit counts are Sacramento County permits on homes in unincorporated areas, October 2023 to September 2026; license matches are to California CSLB records.
Numbers come from Sacramento County building permits on single-family, duplex and townhouse homes in the unincorporated county (the County's Accela permit layer), data through October 18, 2026. Nobody paid to be on this page and nobody can.
Questions
- How much is the SMUD heat pump water heater rebate?
For a gas-to-electric conversion, $3,000 for a 50+ gallon tank, $3,500 for 65+ gallons and $4,000 for 80+ gallons; $1,000 for replacing an electric water heater with a heat pump one. A $2,000 Go Electric panel upgrade bonus can apply on a gas-to-electric job.
- How much is the SMUD heat pump HVAC rebate?
For a gas-to-electric conversion, $3,000 for a variable-stage heat pump and $2,000 for a two-stage one (15.2 SEER2 minimum); $1,000 for an electric-to-electric heat pump upgrade, per SMUD's February 2026 release. A $2,000 Go Electric panel upgrade bonus can apply.
- Can I get a SMUD rebate if I install a heat pump myself?
No. SMUD says rebates 'must be submitted by a qualified participating contractor through SMUD's Contractor Network', and that contractor handles the building permit and HERS testing.
- Are there still federal tax credits for heat pumps in 2026?
Not the ones most people used. SMUD's February 2026 release says the recent federal tax credits expired on 31 December 2025 and that state incentive programs have run out of funding, which is why it raised its own rebates.
- How long does a heat pump permit take in Sacramento County?
The usual unincorporated Sacramento County HVAC permit in our data reached its final 56 days after issue, and a water heater permit 38 days. SMUD pays the rebate after the final paperwork, typically within two weeks of approval.
Build your own list
Every firm with that kind of permit on record. Pick what you value. The list moves.
Related guides
- Home improvement costs in unincorporated Sacramento County, CA (2026): what 14 kinds of jobs were filed at
- Ames Smart Energy rebates in 2026: heat pumps, heat pump water heaters, AC and solar from Ames Electric Services
- Anaheim Public Utilities rebates for heat pumps, water heaters, EV chargers and batteries, and what the permits show
- Home improvement costs in Boulder, CO (2026): what 9 kinds of jobs were filed at
For one city
- Hiring an HVAC contractor in Sacramento County: the CSLB C-20 license, the permit, and what 7,900 HVAC permits show
- Sacramento County building permit search: Accela Citizen Access and records requests
- Sacramento County contractor license lookup: CSLB, the County permit portal, and what the permits show
- Improve Home Efficiency (Home Performance Program) — SMUD (accessed 2026-10-23)
- SMUD boosts rebates for heat pumps — SMUD news release (2026-02-18)
- SMUD Contractor Network (accessed 2026-10-23)