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SMUD: Heat Pump Water Heater Rebate (Gas Replacement)

Save money when upgrading to an energy-efficient water heater heat pump with a rebate from the Sacramento Municipal Utility District.

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Rebate Overview

Overview

The Sacramento Municipal Utility District (SMUD) offers a rebate for homeowners replacing their old gas water heaters with energy-efficient heat pump water heaters. This rebate can save you up to $4,000, depending on the size of the new water heater. Your QuitCarbon-approved contractor will assist you in selecting the optimal water heater size for your home to maximize your savings.

This rebate only applies to replacing existing gas appliances.

Benefits

Upgrading to a heat pump water heater can significantly reduce your energy bills and enhance your home's comfort. These systems are more efficient than traditional gas heaters, leading to lower monthly expenses. Additionally, using a heat pump water heater helps decrease pollution from gas appliances, contributing to a healthier environment.

More Information

  • Rebates are subject to availability of funding and must be submitted by a qualified participating contractor through SMUD’s Contractor Network.
  • To qualify, the new heat pump water heater must meet NEEA Tier III or IV requirements for climate zone 12 and include a thermostatic mixing valve.
  • Projects must be permitted and meet all city/county ordinances, building codes, and permit requirements, including inspections.
  • Home must be individually metered by SMUD. Multi-unit dwellings (up to 4 units) must be individually metered.
  • Rebates can be combined with federal tax credits, allowing you to claim up to 30% of the project cost, up to a maximum of $2,000, when you file your federal taxes. This tax credit is available for installations completed by December 31, 2025.

Details

  • Incentive type: Rebate
  • Amount: $ 3,000
  • Maximum Amount: $ 4,000
  • Category: Water Heater Heat Pump
  • Provider: Sacramento Municipal Utility District (SMUD)
  • Applies to replacing existing equipment: Fossil Fuel
  • Link: More details

Maximize Your Savings with QuitCarbon

QuitCarbon's free, expert guidance makes it simple and affordable to get fossil fuels out of our homes. We've helped thousands of homeowners with planning, installation, and rebates on upgrades like heat pumps, mini-splits, induction cooking, and EV chargers.

QuitCarbon is a certified B Corp and ENERGY STAR® partner that provides free assistance with clean energy upgrades.

Get Started Today

QuitCarbon will maximize your cost savings with holistic planning, guidance on rebates, introductions to vetted contractors, and expert bid reviews.

Click the button below to create your Home Profile and get started.

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