TECH Heat Pump Water Heater Incentives for Businesses, Public Agencies, and Multifamily Residential Customers

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David Jaeger

Climate & Energy Technician

The statewide TECH Clean California initiative is offering incentives to support the installation of heat pump water heaters for both non-residential and multi-family residential customers. At this time the program only serves the hot water needs of one business, entity, or multifamily residential unit, meaning no funding will be provided for commercial or multifamily residential central heat pump water heaters serving the needs of multiple customers. The incentive can be either an “up-front” discount, deducted from the total project cost at the time of customer payment, or provided to the customer post-installation after the contractor receives the incentive. 

For non-residential customers, including small businesses, large commercial entities, and public agencies, the program is offering monetary incentives for replacing existing non-heat pump water heaters with modern heat pump systems. In small systems, incentives of $3,100 to $5,300 per unit are provided. Incentives for larger systems will depend on the size and demand of the installed equipment. Currently, commercial heat pump water heater incentives will only be available for customers in PG&E, SCE, and SDG&E electric service areas. However, eligibility is expected to expand to other service areas in the future. Enter your zip code in the Switch is On Incentive Search tool for up-to-date information to determine whether incentives are available in your area. Learn more about this program here!

For multifamily customers, TECH Clean California is offering contractor incentives of $3,100 to $4,185 per unit for replacing existing non-heat pump water heaters in singular multifamily units with heat pumps for all applicable California customers. Additional incentives from $2,000 to $4,000 are available to support electrical upgrades for all multifamily unitary customers and additional pre-electrification incentives for customers who are eligible for equity incentives. Learn more about this program here! Incentives for multifamily central heat pump water heaters and HVAC are not currently available, but may reopen at a future date. Keep checking in for updates!

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