Requirements for 25C Energy Efficiency Home Improvement Residential Tax Credits under the Inflation Reduction Act (IRA)
Eligible for 30% of costs, including labor, up to yearly maximum limit of $2,000 for heat pump water heater installs on existing home, and not for a newly constructed home.

Must be a 45–80 gallon Heat Pump Water Heater. Minimum UEF 3.30. Must be replacing a GAS storage water heater (fuel substitution).

Rebate amount subject to type and size of water heater being replaced and must be on the Qualified Products List at the time of purchase. Other restrictions apply.

Rebate is issued as a retail coupon to use at checkout in-store or online through a participating retailer.

Customers may reside in a single-family, multifamily, manufactured home or mobile home. Must be an electric customer of SDG&E, SCE, or PG&E.

Must be 45-55 gallons. Minimum UEF is 3.30. Must be replacing a 40 or 50 gallon ELECTRIC storage water heater.

Heat pump water heater must be on the Qualified Products List at the time of purchase.

Rebate is issued as a retail coupon to use at checkout in-store or online.

Eligible incentives:

Income Qualifying (equity) Heat Pump Water Heater Incentive: $4,185 

Low-GWP Kicker Incentive: $1,500 

55+ Gallon Capacity Incentive: $700

Requirements: 

1. Work must be done by a TECH-enrolled contractor
2. Project must be a non-heat pump to heat pump installation
3. No new construction, retrofits only.
4. Customer must enroll in demand response (DR) program
5. Customer must enroll in time-of-use (TOU) program
6. Click here to learn more about income qualification eligibility and access the verification tool here.

Heat Pump Water Heater Incentive can be combined with Electrical & Pre-Electrification Upgrades:

Up to $4,000 (capped at 100% of the reported cost up to $4,000 for income qualified(equity) incentive)