Here’s how Californians can get an $8,000 rebate for buying a home heat pump

The state touts heat pumps as a way to help meet its greenhouse gas reduction goals. Rebate program is funded through a Biden federal program.


Here’s how Californians can get an $8,000 rebate for buying a home heat pump + ' Main Photo'

Californians who meet specific income thresholds may be eligible to receive rebates of $4,000 and up to $8,000 if they buy electric heat pumps for their homes.

The program called the Home Electrification and Appliance Rebates, or HEERA, is funded by the federal governments Inflation Reduction Act that President Joe Biden signed into law in 2022 and managed by the California Energy Commission.

Electric heat pumps are considered to be more environmentally friendly than traditional heating systems that use fossil fuels and their supporters say they are more energy efficient than boilers.

Single-family homeowners in the Golden State with household incomes between 80% and 150% of area median income will be eligible for up to $4,000. Those with incomes less than 80% of area median income will be eligible for up to $8,000.

For example, a family of four in San Diego County making a maximum of $121,250 per year is eligible to receive a rebate of $8,000 and a family of four making up to $227,250 may receive a $4,000 rebate.

Homeowners can go to HEEHRAs online income portal to see if they qualify: heehra-incomeportal.com.

Rebates for multifamily building owners for a wider array of electric appliances became available on Oct. 8 and rebates for single-family homeowners became available earlier this week.

The price of a heat pump varies greatly based on size and aspects of the installation, but TECH Clean California — a statewide initiative to accelerate their adoption — estimates the pumps cost about $20,000.

California policymakers have touted heat pumps as a way to help the state meet its greenhouse gas reduction goals, improve indoor air quality and reduce overall energy costs.

These units make homes more comfortable and can reduce electricity use by up to 75%, compared to electric resistance heating such as furnaces, commissioner Andrew McAllister of the California Energy Commission said in a statement. They also work as air conditioners, which an increasing number of Californians now need due to the effects of climate change.

But the Pacific Research Institute, a Pasadena think tank that espouses free-market solutions to policy matters, questions whether the rebate program is a good use of taxpayer dollars.

Just from a practical perspective, it seems like it wouldnt be very effective in trying to get families that are just barely getting by to make the switch to heat pumps, said senior fellow Wayne Winegarden. Whats also interesting is that all these offsets are coming because state policy has made electricity and energy so expensive.

The California Energy Commission is distributing the first phase of funding through TECH Clean California. For more information on the rebate program, visit techcleanca.com/heehra.