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.
- 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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Other rebates
SMUD heat pump water rebates can be stacked with statewide and federal incentive programs including TECH Clean CA 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 water heaters installed between Jan. 1, 2023 and Dec. 31, 2025 are eligible for a federal tax credit. The full list of eligibility requirements is available here. This tax credit applies only to heat pump water heaters installed before Dec. 31, 2025.