SMUD announced new, increased rebate levels for residential heat pump installations beginning this month. These enhanced rebates represent an increase in existing programs. They're designed to help customers transition to clean, efficient electric heating and cooling technology while offsetting the recent expiration of federal tax credits and state incentive programs.
- Up to $4,000 for gas-to-electric heat pump water heater conversions.
- Up to $3,000 for gas-to-electric heat pump HVAC system conversions.
- $1,000 for electric-to-electric heat pump water heater and heat pump HVAC upgrades.
"These rebates demonstrate our commitment to making clean energy affordable and accessible for every Sacramento family," said Lora Anguay, Chief Zero Carbon Officer. "Heat pumps are a reliable technology that reduce carbon emissions, boost energy efficiency and deliver about $500 a year in real savings. By increasing our rebates, we're removing cost barriers and helping our community take part in our shared clean energy future."
SMUD's heat pump programs are a cornerstone of our 2030 Zero Carbon Plan and goal to electrify 154,000 homes by 2030. Heat pumps are highly efficient compared to traditional gas systems, providing heating and cooling while cutting energy bills, improving indoor comfort and reducing household carbon footprints. Through SMUD's Advanced Home Solutions program, more than 23,000 gas-fired space and water heating systems have already been replaced with high-efficiency electric heat pumps.
The increased rebates come at a critical time, as recent federal tax credits expired on Dec. 31, 2025, and state incentive programs have run out of funding.
MEDIA OPPORTUNITY: Interview with a Sacramento-area family who has recently installed heat pump systems. These customers can share their firsthand experience with the technology, installation process, cost savings and overall experience.
For more information about SMUD's heat pump rebates and to apply, visit smud.org/GoElectric.
About SMUDAs the nation's sixth-largest, community-owned, not-for-profit electric service provider, SMUD has been providing low-cost, reliable electricity to Sacramento County for more than 75 years. SMUD is a recognized industry leader for its innovative energy efficiency programs, renewable power technologies and for its sustainable solutions for a healthier environment. In 2024, SMUD's power supply was about 62% carbon free, which is largely influenced by the weather and amount of hydroelectricity produced. SMUD's goal is to completely eliminate carbon in its electricity production by 2030 while maintaining reliability and keeping rates among the lowest in California on average, 50% lower than its neighboring, investor-owned utility. For more information on SMUD's Zero Carbon Plan and its customer programs, visit smud.org.
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6201 S St
Sacramento California
United States 95852-1830
www.smud.org
