Air Conditioning & Heat Pump Rebates

Energy Smart Homes Program provides incentives for whole-building electrification. To qualify, owners must fulfill several requirements, which include the following:

Complete whole building electrification alterations on an existing single-family dwelling unit or multifamily low-rise building, which includes

• Heat pump space heating (ductless mini-split heat pumps or residential central heat pumps with SEER 15 or greater, and HSPS 8.7 or greater)
• Heat pump water heating
• Electric or induction cooking
• Electric clothes drying (bonus incentives are available for heat pump clothes dryers)

Additionally to qualify you must:

1. Be located in the PG&E®, SCE®, or SDG&E® electric service territory and pay the Public Purpose Program Charge
2. Cap all gas lines to the building(s) that are applying for the whole building electrification alteration incentives
3. Have the work completed by a licensed contractor who meets the minimum alteration criteria and equipment specifications

When you replace your old wood or pellet-burning device with a new, cleaner option, you may be eligible for up to $5,000 in rebates from Valley Air District, the San Joaquin Valley’s Air Pollution Control District.

Older wood-burning fireplaces contribute greatly to air pollution in the San Joaquin Valley. Let Balanced Comfort help you upgrade to a cleaner, more environmentally friendly heat pump to keep your home comfortable all year round, and save you money along the way.

You may qualify for a $5,000 incentive if you:

1. Have Natural Gas service in your home
2. Are replacing your Heating & AC system with a heat pump
3. Have a wood or pellet-burning fireplace (not gas), and are willing to decommission it

If you meet any ONE of the following criteria, you may be eligible for rebates from PG&E.

• Live in a detached Single-Family Residence
• Plan to stay in the home for at least the next 2 years
• Have not participated in any PG&E rebate or rate-payer-funded energy-saving programs in the past 12 months such as ESA (Energy Savings Assistance)

This tax credit is effective for products purchased and installed between January 1, 2023, and December 31, 2032.  You can claim: 30% of the project cost with a maximum of $2,000 credited allowed.

What Products Are Eligible?

In general, all ducted heat pumps that have earned the ENERGY STAR label are eligible, as well as certified mini-split systems (non-ducted) with:

SEER2 > 16 (greater than or equal to 16 SEER2)

EER2 > 12  (greater than or equal to 12 EER2)

HSPF2 > 9  (greater than or equal to 9 HSPF2)

Among the models that earn the ENERGY STAR Cold Climate designation, eligible systems are:

Ducted with EER2 > 10

Mini-splits with

SEER2 > 16

EER2 > 9

HSPF2 > 9.5 

Note: Under the tax code, eligible equipment must “meet or exceed the highest efficiency tier (not including any advanced tier) established by the Consortium for Energy Efficiency which is in effect as of the beginning of the calendar year.”  The eligibility described above is consistent with this requirement.

 

Annual Limits on Energy-Efficient Home Improvement Tax Credits

In addition to limits on the amount of credit you can claim for any particular equipment installation or home improvement, there are annual aggregate limits.  The overall total limit for an efficiency tax credit in one year is $3,200.  This breaks down to a total limit of $1,200 for any combination of home envelope improvements (windows/doors/skylights, insulation, electrical) plus furnaces, boilers, and central air conditioners.  Any combination of heat pumps, heat pump water heaters, and biomass stoves/boilers are subject to an annual total limit of $2,000. (Note: ENERGY STAR-certified geothermal heat pumps are eligible for a separate tax credit and not counted against these limits.)