Active ProgramLast verified: 2026-07-19
SMUD Heat Pump HVAC Rebate
Save up to
Up to $3,000
Provider
Sacramento Municipal Utility District (SMUD)
SMUD offers up to $3,000 for Sacramento homeowners who replace a gas furnace or gas HVAC system with a qualifying electric heat pump. This is one of the largest utility rebates available in Northern California for HVAC upgrades. The rebate covers gas-to-electric conversions with two-stage (15.2+ SEER2) or variable-stage heat pumps.
Eligibility Requirements
- ✓Must be a SMUD residential customer (Sacramento, Citrus Heights, Elk Grove, Rancho Cordova, Folsom)
- ✓Must replace an existing gas heating system (gas furnace, gas packaged unit)
- ✓New system must be a two-stage heat pump (minimum 15.2 SEER2) or variable-stage heat pump
- ✓Must use a SMUD Contractor Network participating contractor
- ✓Electric-to-electric upgrades qualify for up to $1,000
How to Apply
- 1Get a free quote from a SMUD Contractor Network participating contractor through NorCal Repairs
- 2Your contractor will verify your current system qualifies for the gas-to-electric rebate
- 3After installation, your contractor submits the rebate application on your behalf
- 4Rebate is typically applied as a discount on your project cost or issued as a check within 4-8 weeks
- 5No separate homeowner application required — your contractor handles everything
Qualifying Equipment & Services
- ●Two-stage heat pump systems (minimum 15.2 SEER2)
- ●Variable-speed heat pump systems
- ●Ducted heat pump systems replacing gas furnace
- ●Packaged heat pump units replacing gas packaged systems
- ●Mini-split heat pumps (for qualifying whole-home applications)
Related Services
Frequently Asked Questions
How much is the SMUD heat pump rebate?
Up to $3,000 for gas-to-electric conversions, or up to $1,000 for electric-to-electric upgrades. The exact amount depends on the system efficiency rating and type.
Can I stack the SMUD heat pump rebate with other incentives?
Yes! The SMUD heat pump HVAC rebate is stackable with the SMUD panel upgrade rebate ($2,000) and SMUD insulation rebate ($1,000), for a potential total of $6,000 in combined savings.
Do I need to remove my gas line?
No, you don't need to remove existing gas infrastructure. The rebate requires replacing your gas heating system with an electric heat pump, but gas lines for other appliances can remain.
What SEER2 rating do I need?
The heat pump must be at least a two-stage system with a minimum 15.2 SEER2 rating. Variable-stage systems also qualify. Single-stage systems do not qualify for this rebate.
How long does it take to receive the rebate?
Most homeowners receive their rebate within 4-8 weeks after installation is complete and the contractor submits the paperwork.
Claim This Rebate
Get a free quote from a participating contractor. We handle the rebate paperwork for you.
Get Free QuoteCall (916) 476-7689Ready to Save Up to $3,000?
Get a free quote from a certified contractor. We handle rebate paperwork so you get maximum savings.