Heating and cooling systems
Heating and cooling system replacement: Up to $2,000 rebate
Up to 40% of the energy used in your home goes to heating and cooling. Replacing your HVAC system with more efficient equipment will improve your comfort and save you money. Replace your old heating and cooling system with a high-efficiency HVAC system meeting SMUD's program standards and qualify for up to $2,000 in rebates.
Rebates subject to availability of funding.
Heat pump HVAC requirements
Package, split and mini-split1 system
- Variable-stage compressor
- Two-stage compressor at 15.2 SEER2 minimum
- Must pass Title 24 via HERS CF3R and/or if new ductwork installed, it must be insulated to ≥ R8.
- Connected thermostat (Wi-Fi enabled, 7-day programmable)
1 Mini-splits must service entire home and meet minimum HVAC system requirements.
These are a condensed version of requirements outlined in the SMUD Contractor Handbook: Home Rebates Programs Requirements. Contractors are responsible for knowing all requirements, current program rules and advising customers appropriately.
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Other rebates
SMUD heat pump HVAC rebates can be stacked with other statewide and federal incentive programs including TECH Clean CA and HEERA while funding is available. Ask your contractor about eligibility criteria and availability of of other incentive opportunities or visit the Switch Is On incentive lookup.Tax credits
Federal tax credits are also available for qualifying heat pump HVAC systems installed starting January 1, 2023. Please note: Not all HVAC systems 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 HVAC 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.