Santa Barbara Clean Energy (SBCE)CArebate

HEAP Heat Pump HVAC

Rebate amount

$1,000 - $7,500

Your qualifying range

$1,000 – $7,500

Santa Barbara Clean Energy offers up to $3,500 for a new Heat Pump HVAC system, plus up to $4,000 for required electrical panel upgrades. A pre-approval reservation is required before starting work.

residentialsingle family

Guidance

Santa Barbara Clean Energy (SBCE) offers $1,000 to $7,500 in rebates for single-family homeowners replacing an existing electric resistance or gas furnace with a new heat pump HVAC system. This includes up to $3,500 for the heat pump and up to $4,000 for necessary electrical panel upgrades. A pre-approval reservation is strictly required before starting any installation work.

Homeowner Tasks

Confirm SBCE customer and property status
Ensure you are an active Santa Barbara Clean Energy customer and the installation property is a single-family home.
Provide a recent utility bill
Supply a utility bill that clearly shows your SBCE Customer Account Number and Service Account Number prior to installation.
Provide income qualification documentation
If applying for the higher income-qualified bonus, provide proof of CARE/FERA enrollment or proof that household income falls below 80% Area Median Income (AMI).
Wait for pre-approval before starting work
Do not allow the contractor to begin any installation work until the pre-approval reservation is officially granted.

Contractor Tasks

Verify the existing heating system
Confirm the home currently uses electric resistance heating or a gas furnace, as replacing other system types will disqualify the project.
Submit a reservation application and estimate
Submit a pre-approval reservation application that includes a detailed contractor estimate before beginning any work.
Complete installation within 120 days
Finish the heat pump project within 120 days of receiving the approved reservation.
Submit the final paid invoice
Provide a final paid invoice detailing the heat pump installation and clearly itemizing any electrical panel upgrade costs.
Submit the final closed permit
Provide the final closed permit for the completed installation.

A pre-approval reservation must be obtained BEFORE starting work. Starting installation before approval will completely disqualify the project.

You have exactly 120 days from the date of pre-approval to complete the project and submit all final documentation.

Income-qualified households (enrolled in CARE/FERA or earning below 80% AMI) are eligible for significantly higher rebate amounts.

If an electrical panel upgrade is required to support the new heat pump, up to $4,000 in additional reimbursement is available. Ensure these costs are clearly separated on the estimate and invoice.

Qualification

Has income-qualified portion
Income qualification is based on CARE/FERA enrollment or household income below 80% Area Median Income (AMI).
Pre-approval required

Not required: energy star certified equipment · ahri matched pair · income-qualified · permit required · contractor enrollment required · fuel switching required

Stackability: No explicit stackability info provided. Verify with program administrator.

Budget & Availability

March 4, 2026
Funds are currently available.

How to Submit

Submit a reservation application including a contractor estimate. Once approved, you have 120 days to complete the project and submit final documentation.

Program Resources

Santa Barbara Clean Energy (SBCE)CA

Program Page