SMUD Residential Heat Pump Water Heater Rebate
Gas-to-electric: $3,000 (50+ gal), $3,500 (65+ gal), $4,000 (80+ gal). Electric-to-electric: $1,000. Stackable Go Electric bonus of up to $2,000 for panel and circuit upgrades if required.
SMUD offers residential customers rebates up to $2,500 for replacing their water heater with a qualifying high-efficiency heat pump water heater (HPWH). The HPWH must meet NEEA Tier III/IV or UEF >= 2.87 standards. Installation must be performed by a contractor participating in the SMUD Contractor Network.
Guidance
The SMUD Residential Heat Pump Water Heater Rebate offers active SMUD residential customers between $1,000 and $6,000 for upgrading to a qualifying high-efficiency heat pump water heater. To qualify, you must use a contractor from the SMUD Contractor Network and complete pre-enrollment before the installation begins.
Homeowner Tasks
- Verify your SMUD account status
Confirm that you are an active SMUD residential customer.
- Hire an approved contractor
Select a contractor who is currently participating in the SMUD Contractor Network.
- Identify your current water heater type
Confirm whether your existing water heater is gas or electric, as this impacts the available rebate amount.
- Assess electrical upgrade needs
Consult with your contractor to determine if panel and circuit upgrades are necessary, which may qualify you for a $2,000 Go Electric bonus.
- Check your EAPR enrollment status
Determine if you are enrolled in the Energy Assistance Program Rate (EAPR). If so, you must decide whether to proceed with this standard rebate or the fully free EAPR upgrades.
Contractor Tasks
- Complete pre-enrollment
Submit and finalize the pre-enrollment process prior to beginning any installation work on the property.
- Maintain SMUD Contractor Network status
Ensure your business is actively participating and in good standing with the SMUD Contractor Network.
- Install qualifying equipment
Install a heat pump water heater that meets NEEA Tier III/IV standards or has a Uniform Energy Factor (UEF) of 2.87 or higher.
- Obtain necessary permits
Pull and secure all required local building permits for the water heater installation.
- Document tank capacity
Record the specific gallon capacity of the newly installed heat pump water heater, as this determines the rebate tier for gas-to-electric replacements.
- Submit the rebate application
Complete and submit the final rebate application on the customer's behalf once the project is finished.
Qualification
- Has income-qualified portion
Customers enrolled in the Energy Assistance Program Rate (EAPR) may be eligible for free upgrades through the Residential Energy Assistance Program.
- Pre-approval required
- Permit required
- Contractor enrollment required
Installation must be performed by a contractor participating in the SMUD Contractor Network. Find a contractor at smudcontractornetwork.org.
Not required: energy star certified equipment · ahri matched pair · income-qualified · fuel switching required
Budget & Availability
- April 18, 2025Incentive funds are finite and available on a first-come, first-served basis for qualifying projects. Requires using a contractor from SMUD's Contractor Network. Check the SMUD website for the most current availability.
How to Submit
Typically, the participating contractor will submit the rebate application on the customer's behalf. Confirm process with the selected contractor.