Heating and cooling systems

Heating and cooling system replacement: Up to $3,500 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 $3,500 in rebates.

Rebates subject to availability of funding.

Heat pump HVAC requirements

Effective August 1, 2023, the rebate for two-stage split systems was discontinued.

Split and mini-split1 system

  • Variable-stage compressor
  • 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)

Package system

  • ≥ 15 SEER2
  • ≥ Two-stage or variable-stage compressor
  • 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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Tax credits

Federal tax credits are also available for qualifying heat pump HVAC systems installed starting January 1, 2023. Please note: Not all HVAC systems 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
System requirements:

System SEER2 EER2 HSPF2
Ducted Split >=15.2 >=11.7 >=7.8
Non-Ducted >=16.0 >=12.0 >=9.0
Package >=15.2 >=10.6 >=7.2

Note: Heat pump HVAC 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.