​Appliance rebates

Questions?

Customers 

• For questions about the status of your rebate, please email our Rebate Center or call 916-732-7550.
• For other questions, please email Advanced Home Solutions or call 916-732-5732.
• For verification or questions about your Field Quality Control (FQC) check, please email our FQC team at Efficiency First California,

Contractors

Please contact Efficiency First California at 916-209-5117 or contractorsupport@efficiencyfirstca.org.

*Gas-to-electric conversion required to qualify for panel upgrade rebates.

Average pricing for heat pump water heater installations 

To help you make a more informed decision on your project, the chart below shows how much customers are paying on average for heat pump water heater installations. 

Pricing listed is before any SMUD, statewide or Federal Tax Credits are applied. The data provided here is from actual SMUD residential customer projects in the SMUD Advanced Home Solutions Rebates program over the past 12 months (data is refreshed each quarter). We’re displaying this data as a convenience to SMUD customers with their home upgrade planning. SMUD does not guarantee the accuracy, integrity or quality of the data nor does SMUD assume liability for any actions taken in reliance on the data.   

Disclaimer of Warranty and Limitation of Liability 

Factors that impact installation costs.

A main factor driving variation in heat pump water heater installations is whether the water heater needs to be moved, which can have a significant impact on cost. Other factors that impact pricing include the cost of compliance with program requirements (insulated piping, thermostatic mixing valve, expansion tank) and equipment costs. and varying contractor margins. 

We recommend getting at least 3 bids as pricing can vary depending on the company.  Once bids are received, you should consider or ask for more information on the factors above, especially on bids from contractors outside of the program. These factors most impact project pricing and the associated work may or may not be listed explicitly in the bid. 

What is a heat pump water heater?

Heat pump water heaters transfer heat using a refrigeration cycle, like a refrigerator running in reverse, making them extremely efficient.

Features and benefits

More efficient

While gas and electric resistance heaters have a maximum efficiency of 99%, a heat pump water heater can deliver hot water at an efficiency of 300%! Electric resistance water heaters are among the highest energy consuming products in a home. A heat pump water heater can reduce electricity use for water heating by up to 60%. Increased efficiency can also mean lower bills for you.

Safer, cleaner and healthier

Homes and buildings that power appliances with electricity instead of gas are safer—no open flames, no gas leaks, fewer harmful pollutants. Residential natural gas appliances can produce pollutants including carbon monoxide, nitrogen dioxide, formaldehyde and ultrafine particles. These pollutants are harmful and significantly contribute to asthma.

Better for the environment

More than 50% of SMUD’s power comes from carbon-free sources and SMUD’s goal is to be completely carbon free by 2030. When you switch from a gas water heater to a heat pump water heater, you’re reducing greenhouse gas emissions and investing in a cleaner, carbon-free future.

Installation and operational considerations

Your contractor will help you determine if a heat pump water heater is a good fit for your home and whether any electrical work will be necessary. Here are a few things to be aware of when considering a heat pump water heater:

• Electrical considerations: Most heat pump water heaters require a 240V circuit and a 30-amp breaker. Contractors from SMUD’s Contractor Network can help you determine if your home meets the electrical requirements or if your electrical system can be modified to accommodate a heat pump water heater.
• Size and airflow: Your contractor may recommend a larger capacity water heater to meet your family’s hot water needs. Heat pump water heaters may be taller and wider than your current water heater and they also have specific airflow requirements. If your water heater is located in the garage, you’re probably good to go. If it’s in a utility closet, additional work may be needed to meet size and airflow requirements.
• Noise: Heat pump water heaters generate some operational noise, comparable to a loud refrigerator.
• Maintenance: In addition to basic water heater maintenance, heat pump water heaters have an air filter that will need to be periodically cleaned.
• Exhaust air: A heat pump water heater exhausts cold air after heating your water. This can be a benefit if your water heater is located in your garage or another space that you want to cool in the summer. You can also duct the cool air outdoors or into an adjoining space.
• Recirculation pumps: if you have an automated recirculation pump, a heat pump water heater may not be a good fit.
• Mixing valve: The program requires the installation of a thermostatic mixing valve to qualify for the rebate.

What mode should be used when the heat pump is installed?

Heat pump water heaters offer several modes of operation, with each manufacturer using their own terminology. The two modes that are most commonly used are “heat pump only” and “hybrid” or “eco” mode.

• Heat pump only mode: This is the most efficient way to run your heat pump water heater and the mode that offers the most bill savings, but it does take longer to heat the water.
• Hybrid/Eco mode: offers the manufacturer’s best combination of efficiency and performance. The heat pump does the majority of the water heating, with contribution from electric resistance elements only when needed. If your electric resistance elements come on very often, this will increase your electricity bill.

Program requirements

Choose a contractor from the SMUD Contractor Network. These contractors will be familiar with all of SMUD’s program requirements. Here are just a few:

• Resident or homeowner must an active SMUD customer with an active SMUD account.
• Unit must meet NEEA Tier III or IV requirements for climate zone 12, with a Uniform Energy Factor (UEF) of 2.87 or higher.
• Installation must include a thermostatic mixing valve. A mixing valve is a physical component installed on your water heater that blends hot water with cold water to ensure a constant, safe water faucet outlet temperature.
• Project 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. 
• Additional requirements for manufactured, modular, or factory-built homes:

These specifications are a condensed version of guidelines outlined in the SMUD Contractor Handbook: Home Rebates Programs Requirements. Participating SMUD Contractors are responsible for knowing the current program rules and advising customers appropriately.

Find a contractor 

Rebate

Up to a $3,000 rebate. (Subject to availability of funding.) 

How to apply for a rebate:

• Choose a participating contractor from the SMUD Contractor Network.
• Install a qualifying electric heat pump water heater.
• Your contractor will provide the rebate application for your signature and submit the rebate for you.
• Receive your rebate. Note: Your contractor may offer the rebate amount up front and collect the rebate from SMUD after the project is completed.  

Tax credits

Federal tax credits are also available for qualifying heat pump water heaters installed starting January 1, 2023. Please note: Not all heat pump water heaters that qualify for the SMUD rebate are eligible for the tax credit.

Tax Credit: Claim up to 30% of project cost up to a maximum of $2,000.
Expires: December 31, 2032
Note: Heat pump water heater must be installed in your existing home and principal residence. New construction and rentals are not eligible. Tax credits are administered by the IRS and can be claimed when you file your Federal taxes.

Learn more about current 2023 tax credits.

See tax credits for 2022 and previous years.