Active ProgramLast verified: 2026-07-19
SMUD Heat Pump Water Heater Rebate
Save up to
Up to $4,000
Provider
Sacramento Municipal Utility District (SMUD)
The SMUD heat pump water heater rebate is the single largest equipment rebate SMUD offers — up to $4,000 for replacing a gas water heater with an ENERGY STAR certified heat pump water heater (HPWH). Heat pump water heaters use 2-3x less energy than conventional tanks and can save $300-$500 per year on energy bills.
Eligibility Requirements
- ✓Must be a SMUD residential customer (Sacramento, Citrus Heights, Elk Grove, Rancho Cordova, Folsom)
- ✓Must replace an existing gas water heater (tank or tankless)
- ✓New unit must be ENERGY STAR certified heat pump water heater
- ✓Must use a SMUD Contractor Network participating contractor
- ✓Electric-to-electric upgrades qualify for up to $1,000
How to Apply
- 1Request a free quote through NorCal Repairs — we connect you with SMUD Contractor Network participants
- 2Contractor evaluates your space for HPWH placement (needs ~700 cubic feet of air space)
- 3After installation, contractor submits rebate on your behalf
- 4Rebate applied as project discount or check mailed within 4-8 weeks
- 5Can be stacked with Golden State Rebates ($900) for combined $4,900 savings
Qualifying Equipment & Services
- ●ENERGY STAR certified heat pump water heaters (all major brands)
- ●Rheem ProTerra, A.O. Smith Voltex, Bradford White AeroTherm
- ●50-gallon and 80-gallon models (most common residential sizes)
- ●Must replace existing gas water heater for full $4,000 rebate
Related Services
Frequently Asked Questions
How much can I save with the SMUD water heater rebate?
Up to $4,000 for gas-to-electric conversion. Stack with Golden State Rebates ($900) and a panel upgrade rebate ($2,000) for up to $6,900 in total savings.
Will a heat pump water heater work in my garage?
Yes! Garages are actually ideal locations. HPWHs need about 700 cubic feet of air space (roughly a 10x10 room with standard ceiling). They also dehumidify the surrounding air as a bonus.
How much will I save on energy bills?
Most homeowners save $300-$500 per year on water heating costs. Heat pump water heaters use 2-3x less energy than gas or electric resistance tanks.
Is the Golden State Rebates program still available?
Golden State Rebates is ending July 31, 2026. Last day to reserve a retail coupon is July 23, 2026. Act quickly to stack this $900 rebate with your SMUD HPWH rebate.
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 $4,000?
Get a free quote from a certified contractor. We handle rebate paperwork so you get maximum savings.