Policy Context & Overview
Short Answer: TECH Clean California works with utilities and contractors to reduce the retail cost of electric heat pumps for space and water heating.
TECH Clean California is a statewide initiative funded by gas corporation ratepayers and administered by Energy Solutions. The program is designed to accelerate the adoption of clean heating technologies in California, helping the state meet its climate target of carbon neutrality by 2045. By providing market incentives and direct consumer rebates, the program makes it easier and more affordable for homeowners to replace old gas furnaces and water heaters with clean electric heat pumps.
Rebate Structure & Funding Tiers
The program offers direct consumer rebates that are typically applied as a discount on your installer's invoice:
- Heat Pump Space Heating (HVAC): Subsidies range from $1,000 to $3,000 per system depending on your region and the equipment's efficiency rating.
- Heat Pump Water Heaters: Up to $1,000 rebate for replacing a gas water heater.
- Low-Income Bonus: Households meeting regional income limits are eligible for doubled rebate amounts, covering up to 100% of installation costs in some areas.
Eligibility Criteria
- Location: The property must be located in California.
- Certified Contractor: The installation must be completed by a TECH-certified contractor.
- Utility Gate: The property must receive utility service from a participating gas or electric provider (such as PG&E, SCE, or SoCalGas).
Step-by-Step Application Guide
- Select TECH Contractor: Use the TECH Clean California directory to find certified installers in your zip code.
- Request Quote: The installer assesses your existing heating and cooling systems and provides a quote showing the TECH rebate deducted from the final price.
- Complete Installation: The contractor completes the installation and decommissions the old gas equipment.
- Installer Submits Claim: The contractor submits the rebate claim online via the TECH portal.
- Verify Discount: Confirm that the rebate has been applied as a direct deduction on your final invoice.
Frequently Asked Questions
- Q: Can I combine the TECH rebate with federal tax credits?
- A: Yes. You can claim the TECH rebate on your installation invoice and also claim federal tax credits on your annual tax returns for the remaining out-of-pocket balance.
- Q: Why do I have to use a TECH-certified contractor?
- A: The program requires certified contractors to ensure that heat pump systems are sized and installed correctly, maximizing energy savings and system reliability.