If you read an HVAC rebate article written before 2026, most of it is now wrong. Three of the four programs that used to stack on a Bay Area heat pump installation have closed, and the utility rebates people remember from PG&E are no longer on PG&E's list. What is left is smaller, more local and more rule-bound, but it is real money if you plan for it.
This page is our running status check on every program a California homeowner is likely to hear about, written from the programs' own pages rather than from other contractors' blogs. For the full winter heating picture, including the Bay Area's new rules on gas furnaces, see our Winter Heating Help Center.
What has closed
| Program | Status in 2026 |
| Federal 25C tax credit (heat pumps, furnaces, AC) | Ended for equipment placed in service after 31 December 2025 (IRS). A system installed in 2025 or earlier is still claimed on that year's return. |
| TECH Clean California (single-family heat pump HVAC) | Fully reserved since 14 November 2025; not accepting new reservations (TECH Clean California). |
| HEEHRA (the state's federally funded home electrification rebates) | Single-family rebates fully reserved statewide; waitlist only (California Energy Commission). |
| California Energy-Smart Homes | 2026 incentive funding fully subscribed as of April 2026 (BayREN). |
| BayREN Home+ heat pump rebate | No longer available as of April 2024 (BayREN). |
| PG&E residential HVAC rebates | None listed. PG&E's residential rebates page currently lists a generator and battery rebate, a used EV rebate and an EV charging rebate, but no heat pump, AC, furnace or thermostat rebates (PG&E). |
If you see any of these quoted as available for a 2026 installation, including in an online cost calculator, treat the whole estimate with suspicion.
What is still open: local electricity providers
Most of the Bay Area buys its electricity through a community choice provider or a city utility, even though PG&E still delivers it and sends the bill. Those local providers now fund most of the heat pump rebates. Which one you have depends on your address, and the provider's name is printed on your PG&E bill.
| Provider | Where | Heat pump HVAC offer |
| Silicon Valley Clean Energy | Campbell, Cupertino, Gilroy, Los Altos, Los Altos Hills, Los Gatos, Milpitas, Monte Sereno, Morgan Hill, Mountain View, Saratoga, Sunnyvale, unincorporated Santa Clara County | $2,000 for a heat pump replacing a gas furnace; $3,000 income-qualified. Apply before installation. (source) |
| San José Clean Energy | San José | $1,500 for heat pump HVAC replacing gas equipment; $2,500 in designated Environmental Justice communities. Pre-apply and get approval before installation. (source) |
| City of Palo Alto Utilities | Palo Alto | Up to $2,500 for heat pump HVAC that replaces a gas or fossil-fuel heater; up to $5,000 for income-eligible residents. (source) |
| Silicon Valley Power | City of Santa Clara | Gas furnace replacement: $3,000 per ton, up to $10,000. Also a tune-up rebate of up to $75. Check that the heat pump program is open when you apply. (source) |
| WestLight Energy (formerly Peninsula Clean Energy) | San Mateo County, including Redwood City and Woodside | Heat pump HVAC upgrades: up to $2,500. (source) |
| MCE | Marin and much of Contra Costa County, including Walnut Creek, Danville and San Ramon | Up to $400 per 500 square feet of home; installation by a participating contractor. (source) |
| Ava Community Energy | Much of Alameda County | No Ava-branded heat pump HVAC rebate found; Ava points customers to its incentive finder. (source) |
Heat pump HVAC rebates from Bay Area electricity providers. Figures are the programs' own, read 24 September 2026.
A few patterns hold across almost all of them. The rebate is for heat pump heating, usually replacing a gas furnace, not for a new gas furnace or a like-for-like AC. Most require approval before installation. Most require a permit. And most have income-qualified tiers that pay more.
Regional and income-qualified programs
BayREN EASE Home
BayREN's current homeowner program is EASE Home, for moderate-income households in single-family homes built before 2010. For insulation, duct sealing and similar measures, BayREN covers 80 percent of the cost and the homeowner's co-pay is capped at 20 percent. Heat pumps can be installed through its partner contractors, but the program notes you may have to pay for that equipment in full, with BayREN helping you apply for other rebates (BayREN EASE Home). BayREN also offers a $200 rebate for a Home Energy Score.
PG&E bill programs
PG&E's help for heating costs is now on the bill rather than on the equipment: CARE (a discount on gas and electricity for income-qualified households), FERA (an electric discount for slightly higher incomes) and Medical Baseline (extra energy at the lowest price for qualifying medical needs). Our guide to lowering winter heating bills covers each one.
How to not lose the rebate
- Find your electricity provider on your PG&E bill before you get quotes.
- Read that provider's current rebate page and note whether you must apply before installation. Most do.
- Get quotes for equipment that meets the program's requirements, and ask each contractor how they handle the permit.
- Apply, and wait for written approval if the program requires it.
- Install with a permit, keep the invoice, equipment model numbers and permit record, and submit the claim within the program's deadline.
The costliest mistake is replacing a failed furnace in a rush in January. Pre-approval programs usually cannot be claimed after the fact. If your furnace is old, planning the replacement in spring or summer is worth real money. Our guide to Bay Area gas furnace rules and heat pumps walks through the decision.
Program details checked 24 September 2026. Funding, amounts and rules change, sometimes mid-year. Confirm the current terms on the program's own page, and get any pre-approval in writing, before you sign a contract.
Frequently Asked Questions
Can I still get the federal tax credit for a heat pump or furnace in 2026?
No. The 25C credit ended for equipment placed in service after 31 December 2025 (IRS). If your system was installed in 2025 or earlier, you still claim it on that year's return.
Does PG&E give rebates for heat pumps or furnaces?
Not currently. PG&E's residential rebates page lists generator, battery and EV offers only (PG&E). Heat pump rebates in the Bay Area now come mostly from local electricity providers such as Silicon Valley Clean Energy, San José Clean Energy and WestLight.
Is TECH Clean California coming back?
Its single-family heat pump incentives have been fully reserved since 14 November 2025 and are not accepting new reservations (TECH Clean California). Check its page before planning around it.
Are there rebates for a new gas furnace?
We did not find any current Bay Area program that rebates a new gas furnace. The open local programs pay for heat pumps, usually when they replace gas heating.
Do rebates cover ductless mini-splits?
Often, because a ductless mini-split is a heat pump, but each program sets its own rules on system type, efficiency and what it must replace. Check the specific program page before you choose equipment.
Talk to a technician
Cool Aid Air Conditioning & Refrigeration has installed and repaired heating systems across the Bay Area since 1966. We will tell you which incentives apply at your address and quote the job against the programs that are actually open, with a 1-year parts and labor warranty on every job.
📞 Call 1-800-266-5243.
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