Heat Pump Rebates in LA County 2026

Heat pump incentive programs in 2026 are the most generous they have ever been in Los Angeles. The combination of federal Inflation Reduction Act credits, California's TECH Clean program, and local utility rebates can offset a meaningful share of installation cost — often $2,000–$8,000 depending on income and equipment efficiency.

Federal: Inflation Reduction Act (IRA) Tax Credits

The IRA's 25C tax credit covers 30% of the cost of qualifying heat pump installations, capped at $2,000 per year. The credit applies to the equipment and installation labor combined.

Eligibility is straightforward: the heat pump must meet specified efficiency thresholds (most modern equipment qualifies), and you must have federal tax liability against which to apply the credit. The credit is non-refundable but can be carried forward.

California: TECH Clean California

The TECH Clean California program provides direct rebates rather than tax credits. Standard incentives run $1,000–$3,000 for qualifying heat pump installations. Income-qualified households (under 80% of area median income) qualify for substantially higher rebates — often $4,000–$6,000.

Application is handled by the contractor, with the rebate either deducted from the installation cost or paid to the homeowner after installation depending on program structure.

LADWP and SoCalGas Incentives

Both Los Angeles Department of Water and Power (LADWP) and SoCalGas operate periodic incentive programs for heat pump and heat pump water heater installations. Incentive amounts vary year-to-year and can stack on top of state and federal programs.

How the Stack Works for a Typical LA Install

For a $12,000 heat pump installation on a standard-income household:

• IRA tax credit: $2,000
• TECH Clean California: $1,500–$3,000
• LADWP rebate (when active): $500–$1,500

Net cost after incentives: $5,500–$8,000.

For income-qualified households, the same install can land at $3,000–$5,500 net after stacking maximum incentives.

What to Know Before You Apply

Pre-approval is required for some programs. The contractor should pull pre-approval before installation, not after. Equipment efficiency requirements are strict — make sure the model proposed for installation actually qualifies for the rebates being claimed. We verify model-by-model qualification on every install.

Programs change annually. The figures above reflect 2026 program structures and may shift in 2027. Confirm current incentive amounts with your contractor at the time of installation.