What changed

SDG&E’s 2026 Home Energy Savings Program now stacks heat pump water heater rebates (up to $1,500) on top of existing heat pump HVAC rebates (up to $3,100 for whole-home systems, $700 for mini-split installs). Income-qualified households in the 80-150% AMI bracket are eligible for enhanced rebate tiers.

Why this matters for San Diego homeowners

Heat pump water heaters have been quietly one of the best-payback electrification upgrades in SD County — especially for homes that already have a nearby 240V circuit. At 3-4× the efficiency of a standard gas water heater, annual savings of $150-350 are common in coastal SD climate zones.

Stacked with the existing HVAC rebate + federal 25C tax credit (30% of cost, up to $2,000), a whole-home electrification swap (HVAC + water heater) can pencil out at $5,000-7,000 in combined rebates on a $14,000-18,000 install. ROI for many SD homes lands in the 6-8 year range — inside the equipment warranty period.

Eligibility + process

  1. Verify income tier on SDG&E’s rebate portal (income-qualified installs get enhanced rebates).
  2. Use an approved contractor — SDG&E maintains a list, Climate Pros SD is one.
  3. Submit rebate paperwork with invoice + AHRI certificate.
  4. Rebate issued as SDG&E bill credit within 6-10 weeks.

Next steps

If you’re weighing a heat pump upgrade and want the 2026 rebates included in the quote, get a free estimate or call (858) 808-6055. Our heat pump service page covers the install scope and system sizing.

Source: SDG&E Residential Rebates program page. Program terms can change during the year — always verify eligibility with SDG&E before scheduling work.