San Francisco Homeowners Can Save Thousands with New California Heat Pump Rebates in 2024
San Francisco homeowners looking to upgrade their heating and cooling systems have an unprecedented opportunity to save money in 2024. California has launched new rebate programs offering income-qualified, single-family homeowners up to $8,000 to reduce the cost of purchasing and installing a new, energy-efficient home heating and cooling heat pump, with rebates for single family homeowners becoming available on November 12, 2024.
Understanding the HEEHRA Program
The cornerstone of these savings comes through California’s Home Electrification and Appliance Rebates (HEEHRA) program, which is one of three programs under the Inflation Reduction Act launched by the California Energy Commission. Income-qualified California residents can receive a HEEHRA rebate of up to $8,000 for low-income households and $4,000 for moderate-income households for a heat pump HVAC unit through TECH Clean California when replacing an existing source of space heating.
The income qualification thresholds are designed to help middle and lower-income families: California homeowners with household incomes between 80% and 150% area median income (AMI) will be eligible for up to $4,000, while those with incomes less than 80% AMI will be eligible for up to $8,000.
Additional Rebate Opportunities
Beyond the HEEHRA program, San Francisco homeowners have access to multiple rebate sources. A California statewide rebate of $1,000 is available, up to two systems per household, and many utility companies in California offer further rebates for heat pumps, ranging from $100 to $3,000. Any household can claim a $2,000 federal tax credit (or 30% of the price, whichever is less) against the cost to install an air-source heat pump that meets modest efficiency requirements.
For homeowners served by community choice aggregators like Silicon Valley Clean Energy, additional opportunities exist. Some programs offer up to $8,750 in rebates for upgrading to new electric home appliances, plus additional rebates of $4,250 for income-qualified customers.
Why Heat Pumps Make Sense for San Francisco
Heat pump units make homes more comfortable and can reduce electricity use by up to 75%, compared to electric resistance heating such as furnaces. They also work as air conditioners, which an increasing number of Californians now need due to the effects of climate change. This dual functionality is particularly valuable in San Francisco’s diverse microclimates, where heating and cooling needs can vary significantly throughout the year.
Equipment Requirements and Eligibility
Income-qualified, single family homeowners will be able to apply for rebates for two-speed or variable speed ENERGY STAR® certified heat pumps for space heating and cooling. The program is available to owners of a single family home in California (including manufactured or mobile homes and condos) that either reside in the home and are income-qualified or rent the home to an income-qualified household, and are replacing an existing, non-heat pump source of space heating with a qualifying heat pump.
Working with Qualified Contractors
To access these rebates, homeowners must work with certified contractors. Rebates are only available through contractors who are enrolled in TECH and trained in the HEEHRA rebates. Qualified contractors can be found through The Switch Is On’s Contractor Finder.
For San Francisco area residents, Sugar Bear Home Services represents an excellent choice for professional Heat Pump Installation San Francisco, CA. Sugar Bear Home Services (formerly Sugar Bear Plumbing) is your trusted provider for plumbing, HVAC, and electrical services. We pride ourselves on our attention to detail and commitment to customer satisfaction. We are proud to be locally owned and serve South San Francisco and surrounding areas.
Their experienced team is dedicated to providing top-notch heating and cooling services, including furnace repair and installation, heat pump repair and installation, air conditioner repair and installation, and mini split AC repair and installation. The company specializes in “One Happy Customer at a time!” and has been established since 2001.
Important Program Updates and Limitations
Homeowners should act quickly, as funding is limited. HEEHRA single-family rebates are fully allocated, and the program is no longer accepting new income verification applications or reservation requests for single-family projects. If additional funding becomes available for single-family upgrades, updates will be provided. However, HEEHRA rebates are still available statewide for multifamily homes.
Maximizing Your Savings Strategy
To maximize savings, San Francisco homeowners should consider stacking multiple incentives. HEEHRA Rebates can also be stacked with other incentives from TECH Clean California to maximize savings. The combination of federal tax credits, state rebates, utility incentives, and local programs can significantly reduce the overall cost of heat pump installation.
The application process begins with income verification, and most applicants will receive an approval or denial notice in the form of a code via email or text in one day. Once approved, homeowners can work with qualified contractors to proceed with their heat pump installation and secure their rebates.
For San Francisco homeowners considering a heat pump upgrade, 2024 represents an exceptional opportunity to improve home comfort while reducing energy costs through these substantial rebate programs. Working with experienced local contractors like Sugar Bear Home Services ensures professional installation and proper navigation of the rebate application process.
