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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
| Upgrade | Condition | Up 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 size | Electric to electric | $1,000 |
| Variable-stage heat pump | Gas to electric | $3,000 |
| Two-stage heat pump, 15.2 SEER2+ | Gas to electric | $2,000 |
| Two- or variable-stage heat pump | Electric to electric | $1,000 |
| Go Electric bonus, panel upgrade | Only with a gas-to-electric conversion | $2,000 |
| Induction cooktop or range | Replacing gas ($100 replacing electric) | $750 |
| ENERGY STAR clothes washer | Instant, at Home Depot and RC Willey in SMUD's area | $100 |
| Smart thermostat | Instant, only through the SMUD Energy Store | $50 |
| ENERGY STAR refrigerator | Instant, 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.
| Installation | Median | Range |
|---|---|---|
| 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.
Sources
- https://www.smud.org/Rebates-and-Savings-Tips/Rebates-for-My-Home — primary source, read 24 September 2026
- https://www.smud.org/Rebates-and-Savings-Tips/Rebates-for-My-Home/Heating-and-Cooling-Rebates
- https://www.smud.org/Rebates-and-Savings-Tips/Rebates-for-My-Home/Home-Appliances-and-Electronics-Rebates