Heating and cooling rebates

If your heating and cooling systems are old, they're probably inefficient. Replacing them can trim your energy bills and increase the comfort of your home.

SMUD offers rebates on energy-efficient heat pump heating and cooling systems installed by a qualifying contractor.

If you are going to be doing multiple improvements, such as a heat pump water heater, a heat pump HVAC system or insulation, our Home Performance Program may be for you.

Minimum HVAC

Features and benefits

More comfort. Two-stage and variable-stage systems circulate more air throughout your home, which helps to eliminate hot or cold spots and keep your home at a consistent temperature. Plus, a variable-stage system operates so quietly that you may not even realize it’s on!

Balanced humidity. Systems that have longer runtimes are better at maintaining the ideal levels of humidity in your home by season. Humidity levels are what help you feel cooler or warmer. You’ll notice less humidity in the summer (which helps you feel cooler) and slightly more humidity during the colder months (which helps you feel warmer).  

Better indoor air quality. Because the multi-stage systems run longer, the air filter traps more airborne particulates, lowering the dust and pollen levels inside your home.

Safer, cleaner and healthier. Homes and buildings that power appliances with electricity instead of gas are safer - No open flames, no gas leaks, no carbon monoxide. Residential natural gas appliances can produce pollutants including carbon monoxide (CO), nitrogen dioxide (NO2), formaldehyde (HCHO) and ultrafine particles. These pollutants are harmful and significantly contribute to asthma.


Eligibility for single-family and multi-family dwellings (up to 4 units)

To be eligible for rebates, the following requirements must be met: 

  • Resident or homeowner is an active SMUD customer with an active SMUD account
  • Home is individually metered by SMUD
  • Multi-unit dwellings must be individually metered. 

For eligibility requirements for manufactured, modular or factory-built homes, see below.

The rebate is contingent on the project complying with all city/county ordinances, building codes and permit requirements, including inspections.

Eligibility for manufactured, modular or factory-built homes

Manufactured, modular or factory-built homes qualify for a rebate only if all of the following are true:

  • Resident or homeowner must be a SMUD customer with an active SMUD account.
  • Home must be individually metered by SMUD.
  • Home must be subject to state and local building codes. 
    • Contact your local building department to find out if your home is subject to state and local building code.
    • Mobile homes on a chassis and axle, constructed under HUD codes or that have a State of California Community Services Department sticker indicating status as a licensed mobile home MAY NOT QUALIFY. 
    • Homes on a permanent foundation typically DO qualify.


View financing options   

Tax credits

Federal tax credits are also available for qualifying HVAC systems installed between 2017 and 2021.

Tax Credit: 10% of cost up to $300.
Expires: December 31, 2021 
Note: Must be an existing home and your principal residence. New construction and rentals do not apply.

Learn more about these tax credits here


Product must be installed by a participating contractor in the SMUD Contractor Network.

Note: SMUD does not endorse or warrant any workmanship, installation, labor, cost or materials of the contractor you select.

Find a contractor


Up to a $3,000 rebate. (Subject to availability of funding.)

How to apply for a rebate:

  • Choose a participating contractor from the SMUD Contractor Network.
  • Install a qualifying multi-stage electric heat pump HVAC system.
  • Your contractor will provide the rebate application for your signature.
  • Receive your rebate. Note: Your contractor may offer the rebate amount up front and collect the rebate from SMUD after the project is completed. 

For an instant rebate shop online at SMUDEnergyStore.com.


  • Wi-Fi enabled thermostat that automatically adjusts heating and cooling temperature settings in your home for optimal performance
  • Many smart thermostats learn your temperature preferences and establish a schedule that automatically adjusts to energy-saving temperatures when you are asleep or away
  • Ability to control your home’s heating and cooling remotely through your smartphone
  • ENERGY STAR® certified smart thermostats quickly enter a low-power standby mode when inactive
  • Smart thermostats provide equipment use and temperature data you can track and manage
  • Two qualified products per address, per year


  • Thermostat must be an ENERGY STAR®-certified device
  • Two qualified products per address, per year 


Have an old mercury thermostat? Receive an additional $5 rebate to help keep our community clean! Click here for more details.

Shop online for instant rebates

Heating and Cooling Questions? Please email AdvancedHomeSolutions@smud.org or call 1-916-732-5732.