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Energy Rebates in California
California residents can access a range of federal energy tax credits, state-specific incentive programs, and local utility rebates to help offset the cost of energy-efficient home improvements. This page covers the key programs available in California, including heat pump rebates, solar incentives, EV charger credits, weatherization assistance, and more. Each program listed below includes eligibility details and links to official sources.
Federal Programs Available in California
- 25C Energy Efficient Home Improvement Credit: Up to $3,200/year for heat pumps, insulation, windows, doors, electrical panels, and home energy audits. Covers 30% of costs.
- 25D Residential Clean Energy Credit: 30% tax credit for solar panels and battery storage with no dollar cap. Available through 2032.
- HOMES & HEAR Rebates: Income-qualified point-of-sale rebates up to $14,000 for heat pumps, water heaters, electrical panels, and other electrification upgrades.
- 30C EV Charger Credit: Up to $1,000 for home EV charging equipment in eligible census tracts.
- Weatherization Assistance Program (WAP): Free weatherization services for low-income households at or below 200% of the federal poverty level.
California Energy Rebate Overview
California households have access to a combination of federal, state, and local utility incentives designed to make energy-efficient home upgrades more affordable. California has launched both the HOMES (Home Owner Managing Energy Savings) and HEAR (High-Efficiency Electric Home Rebate) programs under the Inflation Reduction Act, making additional point-of-sale rebates available to qualifying residents. The California Energy Commission (CEC) coordinates state-level energy programs and can provide the latest information on available incentives.
HOMES & HEAR Program Status in California
California has launched its HOMES and HEAR rebate programs. The California Energy Commission (CEC) administers the programs, branded in part through existing infrastructure. California was among the first states to begin accepting applications, leveraging its existing energy efficiency program ecosystem.
Income Eligibility for California Rebates
For California, 80% of Area Median Income varies significantly by county due to high cost of living. In Los Angeles County, 80% AMI for a family of four is approximately $76,100. In the San Francisco Bay Area, it can exceed $100,000.
For California, 150% of Area Median Income in Los Angeles County for a family of four is approximately $142,700. In the San Francisco Bay Area, 150% AMI can exceed $190,000.
California State Rebate Programs
TECH Clean California
Administered by: California Energy Commission (CEC), administered by Energy Solutions
Amount: Up to $3,000 for heat pump HVAC systems; up to $4,885 for heat pump water heaters (income-qualified)
Eligible items: Heat pump space heaters, heat pump water heaters, heat pump clothes dryers. Higher incentives available in disadvantaged communities and for low-income households.
TECH Clean California is a statewide program to accelerate the adoption of clean heating technologies. Incentives vary by technology, income level, and community designation.
Self-Generation Incentive Program (SGIP)
Administered by: California Public Utilities Commission (CPUC), administered by investor-owned utilities
Amount: Varies; residential battery storage incentive is approximately $150-$1,000/kWh depending on equity category
Eligible items: Battery energy storage systems, fuel cells, and other distributed energy resources
SGIP provides incentives for energy storage, particularly for customers in fire-threat areas (Equity Resiliency Budget) and low-income customers. The program has been extended and modified multiple times.
Energy Savings Assistance (ESA) Program
Administered by: California Public Utilities Commission, implemented by PG&E, SCE, SDG&E, and SoCalGas
Amount: Free energy efficiency upgrades for qualifying households
Eligible items: Weatherization (insulation, weatherstripping), lighting, refrigerators, HVAC maintenance, smart thermostats, and other energy-saving measures
Available to income-qualifying customers at or below 200% of federal poverty level. No cost to the customer for qualifying measures.
CaliforniaFIRST / PACE Programs
Administered by: Various PACE administrators (Ygrene, Renew Financial)
Amount: Financing for 100% of project cost; no upfront payment required
Eligible items: Solar panels, battery storage, energy-efficient HVAC, windows, insulation, cool roofs, water efficiency measures
Property Assessed Clean Energy (PACE) financing repaid through property tax assessments. Note: PACE programs have faced regulatory scrutiny and restrictions. Check current availability.
Weatherization Assistance Program
Administered by: California Department of Community Services and Development
Amount: Average of approximately $7,000-$10,000 per home
Eligible items: Insulation, air sealing, HVAC repair/replacement, water heater replacement, weatherstripping
Federally funded program for income-qualifying households. California supplements federal funding with state resources.
Low-Income Weatherization Program (LIWP)
Administered by: California Department of Community Services and Development
Amount: Free solar PV and energy efficiency upgrades for qualifying households
Eligible items: Solar PV installation, energy efficiency measures, and in some cases energy storage for low-income households
Funded by California Climate Investments (cap-and-trade auction proceeds). Serves low-income households, farmworkers, and residents of disadvantaged communities.
Solar Net Metering in California
California transitioned from NEM 2.0 to Net Billing (NEM 3.0) in April 2023. Under NEM 3.0, export compensation rates are based on the avoided cost calculator and vary by time of day, significantly reducing the value of exported solar energy compared to NEM 2.0. This change strongly incentivizes battery storage paired with solar. Existing NEM 1.0 and 2.0 customers are grandfathered for 20 years from their interconnection date.
Utility Rebate Programs in California
California residents may qualify for additional rebates from their local utility company. Here are programs from major utilities serving the state:
Pacific Gas & Electric (PG&E)
Energy Efficiency Rebates
Amount: Varies; up to $3,200 for qualifying heat pump HVAC systems through TECH Clean California
Eligible items: Heat pump HVAC, heat pump water heaters, smart thermostats, insulation, pool pumps
Home Energy Checkup
Amount: Free online and in-home options
Eligible items: Energy assessment identifying savings opportunities
SGIP Battery Storage
Amount: $150-$1,000/kWh depending on customer category
Eligible items: Battery energy storage systems (e.g., Tesla Powerwall, Enphase, LG)
Southern California Edison (SCE)
Residential Energy Efficiency Rebates
Amount: Varies by measure; TECH Clean California incentives available
Eligible items: Heat pump HVAC, heat pump water heaters, smart thermostats, pool pumps, whole-house fans
Clean Fuel Reward (EV Charger)
Amount: Up to $1,000 off purchase of qualifying EV or Level 2 charger rebate
Eligible items: Electric vehicle charger installation and related electrical panel upgrades
San Diego Gas & Electric (SDG&E)
Energy Efficiency Rebates
Amount: Varies; aligned with TECH Clean California incentive levels
Eligible items: Heat pump HVAC, heat pump water heaters, smart thermostats, weatherization measures
Power Your Drive (EV Charging)
Amount: Reduced installation costs for EV charging in multi-family housing
Eligible items: EV charging infrastructure for multi-family residential properties
Southern California Gas Company (SoCalGas)
Residential Rebates
Amount: Varies; up to $1,000 for qualifying equipment
Eligible items: High-efficiency furnaces, tankless water heaters, smart thermostats, clothes washers
Get Personalized California Rebate Guidance
Enter your ZIP code below to chat with our AI about rebates specific to your area in California. The AI will check federal, state, and utility programs and give you a personalized breakdown of what you may qualify for and how to apply.
Frequently Asked Questions About California Rebates
What energy rebates are available in California?
California residents can access federal tax credits including the 25C Energy Efficient Home Improvement Credit (up to $3,200/year) and the 25D Residential Clean Energy Credit (30% for solar and battery storage). State-level programs include TECH Clean California, Self-Generation Incentive Program (SGIP), Energy Savings Assistance (ESA) Program, CaliforniaFIRST / PACE Programs, Weatherization Assistance Program, Low-Income Weatherization Program (LIWP). California has also launched the federal HOMES and HEAR rebate programs for income-qualifying households.
Has California launched the HOMES and HEAR rebate programs?
California has launched its HOMES and HEAR rebate programs. The California Energy Commission (CEC) administers the programs, branded in part through existing infrastructure. California was among the first states to begin accepting applications, leveraging its existing energy efficiency program ecosystem.
What are the income limits for energy rebates in California?
For California, 80% of Area Median Income varies significantly by county due to high cost of living. In Los Angeles County, 80% AMI for a family of four is approximately $76,100. In the San Francisco Bay Area, it can exceed $100,000. For California, 150% of Area Median Income in Los Angeles County for a family of four is approximately $142,700. In the San Francisco Bay Area, 150% AMI can exceed $190,000.
Does California have net metering for solar panels?
California transitioned from NEM 2.0 to Net Billing (NEM 3.0) in April 2023. Under NEM 3.0, export compensation rates are based on the avoided cost calculator and vary by time of day, significantly reducing the value of exported solar energy compared to NEM 2.0. This change strongly incentivizes battery storage paired with solar. Existing NEM 1.0 and 2.0 customers are grandfathered for 20 years from their interconnection date.
How do I apply for energy rebates in California?
Start by entering your ZIP code on Rebate Atlas to get personalized guidance. For federal tax credits (25C and 25D), you claim them when you file your federal income tax return using IRS Form 5695. For state programs, contact the California Energy Commission (CEC). For utility rebates, check with your local utility provider directly.
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