Santa Barbara Clean Energy (SBCE)CArebate

HEAP Heat Pump Water Heater

Rebate amount

$500 - $7,500

Your qualifying range

$500 – $7,500

Santa Barbara Clean Energy offers up to $3,500 for installing a Heat Pump Water Heater, plus up to $4,000 for associated electrical work. Higher rebate amounts are available for income-qualified customers and those replacing gas appliances. Customers must submit a reservation application with a contractor estimate before beginning the project.

residentialsingle family

Guidance

Santa Barbara Clean Energy (SBCE) offers $500 to $7,500 in rebates for single-family homeowners who install a Heat Pump Water Heater. Bonus incentives are available for replacing gas/propane water heaters, completing associated electrical upgrades, and for income-qualified households. A reservation application must be submitted and approved before any installation work begins.

Homeowner Tasks

Confirm your property eligibility
Ensure your home is a single-family property and you are an active Santa Barbara Clean Energy (SBCE) customer.
Provide a recent utility bill
The bill must clearly show your SBCE Customer Account Number and Service Account Number.
Submit a reservation application
This must be submitted and approved prior to beginning any installation work.
Verify income qualification status
Indicate if your household is enrolled in CARE/FERA or if your income falls below 80% of the Area Median Income (AMI) to claim the income-qualified bonus.

Contractor Tasks

Provide a pre-installation estimate
A detailed contractor estimate must be provided for the homeowner's reservation application.
Identify the existing water heater type
Note if the unit being replaced is Gas/Propane or Electric Resistance to determine bonus eligibility.
Itemize associated electrical work costs
Provide the estimated and final costs for any electrical upgrades required for the installation.
Provide the final paid invoice
Must be submitted with the final documentation upon project completion.
Provide the final closed permit
A finalized permit is required for the final submission.

Projects started before the reservation application is approved will be disqualified.

Once the reservation is approved, you have exactly 120 days to complete the installation and submit all final documentation.

Income-qualified customers are eligible for a $1,000 bonus and an increased maximum of $4,000 toward associated electrical work.

An additional $2,000 bonus is automatically applied if replacing an existing gas or propane water heater.

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 stackability details explicitly stated in the summary. Verify with SBCE regarding combination with federal tax credits or state rebates.

Budget & Availability

March 4, 2026
Funds are currently available. No specific budget caps mentioned.

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