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.

The federal 25C tax credit ended for systems installed after December 31, 2025, so a 2026 whole-home electrification swap is working from the utility and state programs only. Ask the pro to put the current rebate amounts in writing on the quote; program terms and funding change during the year.

Eligibility + process

  1. Verify income tier on SDG&E’s rebate portal (income-qualified installs get enhanced rebates).
  2. Use a contractor on SDG&E’s approved list. Climate Pros SD is a referral service, not a contractor, and matches you with licensed local pros who are on it.
  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, send us your details or call (442) 777-6440. 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.