Heating and cooling systems

Heating and cooling system replacement: Up to $2,500 rebate

Up to 40% of the energy used in your home goes to heating and cooling. Replacing your HVAC system with more efficient equipment will improve your comfort and save you money. Replace your old heating and cooling system with a high-efficiency HVAC system meeting SMUD's program standards and qualify for up to $2,500 in rebates.

Rebates subject to availability of funding.

Heat pump HVAC requirements

Package, split and mini-split1 system

  • Variable-stage compressor
  • Two-stage compressor at 15.2 SEER2 minimum
  • Must pass Title 24 via HERS CF3R and/or if new ductwork installed, it must be insulated to ≥ R8. 
  • Connected thermostat (Wi-Fi enabled, 7-day programmable) 

1 Mini-splits must service entire home and meet minimum HVAC system requirements.

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

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Other rebates

SMUD heat pump HVAC rebates can be stacked with other statewide and federal incentive programs including TECH Clean CA and HEERA while funding is available. Ask your contractor about eligibility criteria and availability of other incentive opportunities or visit the Switch Is On incentive lookup.  

Tax credits

Qualifying heat pump HVAC systems installed between Jan. 1, 2023 and Dec. 31, 2025 are eligible for a federal tax credit. The full list of eligible heat pump HVAC systems is available here. 

Learn more about federal tax credits for energy efficiency.