Heat pump water heaters 

Rebates up to $3,000

Choosing a more efficient heat pump water heater can help you reduce your monthly water heating bills and lower your home’s emissions from natural gas.

Use the SMUD Contractor Network to find a qualified contractor to install your heat pump water heater.

Heat pump water heater requirements

  • Unit must meet NEEA Tier III or IV requirements for climate zone 12, with a Uniform Energy Factor (UEF) of 2.87 or higher.
  • Installation must include a thermostatic mixing valve. A mixing valve is a physical component installed on your water heater that blends hot water with cold water to ensure a constant, safe water faucet outlet temperature.
  • Project must be permitted and meet all city/county ordinances, building codes and permit requirements, including inspections.
  • Home must be individually metered by SMUD. Multi-unit dwellings (up to 4 units) must be individually metered. 

These specifications are a condensed version of guidelines outlined in the SMUD Contractor Handbook: Home Rebates Programs Requirements. Contractors are responsible for knowing the current program rules and advising customers appropriately.

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Tax credits

Federal tax credits are also available for qualifying heat pump water heaters installed starting January 1, 2023. Please note: Not all heat pump water heaters 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 water heater 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.

Learn more about current 2023 tax credits.

See tax credits for 2022 and previous years.