Fix First HomeWhat home-upgrade rebates actually pay — and who you apply to.

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SMUD home rebates open

Administered by the Sacramento Municipal Utility District (SMUD).

Sacramento's city-owned utility pays up to $4,000 for a heat pump water heater, up to $3,000 for a heat pump replacing gas, $2,000 more for a panel upgrade when you leave gas, and $750 for gas-to-induction. It publishes what its customers actually paid for the work.

source · verified 24 September 2026 · amounts in US dollars

What it pays

Rebate amounts by upgrade and condition
UpgradeConditionUp to
Heat pump water heater, 80 gal+Gas to electric$4,000
Heat pump water heater, 65 gal+Gas to electric$3,500
Heat pump water heater, 50 gal+Gas to electric$3,000
Heat pump water heater, any sizeElectric to electric$1,000
Variable-stage heat pumpGas to electric$3,000
Two-stage heat pump, 15.2 SEER2+Gas to electric$2,000
Two- or variable-stage heat pumpElectric to electric$1,000
Go Electric bonus, panel upgradeOnly with a gas-to-electric conversion$2,000
Induction cooktop or rangeReplacing gas ($100 replacing electric)$750
ENERGY STAR clothes washerInstant, at Home Depot and RC Willey in SMUD's area$100
Smart thermostatInstant, only through the SMUD Energy Store$50
ENERGY STAR refrigeratorInstant, at participating stores$50

What SMUD customers actually paid

SMUD's own figures from the last 12 months of single-measure projects, before any rebate.

Median installed cost, SMUD rebate projects
InstallationMedianRange
Heat pump HVAC, gas to electric$18,804$3,500 to $65,620
Heat pump HVAC, electric upgrade$17,336$7,250 to $44,763
Heat pump water heater, gas to electric$6,220$2,710 to $13,395
Heat pump water heater, electric to electric$5,416$1,760 to $13,255

Who is eligible

account
An active SMUD account, with the home individually metered by SMUD (up to four units).
contractor
Heat pump and heat pump water heater rebates only through a participating SMUD Contractor Network contractor, who applies for you.
equipment
Heat pumps two-stage (15.2 SEER2+) or variable-stage, with a connected thermostat; water heaters NEEA Tier III or IV, with a thermostatic mixing valve.
permits
Permitted and inspected work.
induction
24 inches or larger; apply within 180 days, with before and after photos for gas to induction.

What disqualifies you

The rules people find out about after the work is done.

  • Single-stage heat pumps.
  • A heat pump or water heater installed by a contractor outside the SMUD Contractor Network.
  • Mobile homes on a chassis built to HUD code may not qualify.

The thing most pages get wrong

The $4,000 and $3,000 are for leaving gas. Replacing an electric water heater or heat pump pays $1,000. SMUD's own water heater page also still says TECH Clean California incentives "may be available for a limited time"; TECH's single-family incentives were fully reserved in November 2025.

Get three bids

SMUD's installed-cost figures show the same gas-to-heat-pump job running from $3,500 to $65,620. SMUD recommends at least three bids.