TECH Clean California offers point-of-sale rebates for heat pump HVAC and heat pump water heater installations, processed entirely through a certified contractor — you never file paperwork with the state yourself. As of early 2026, single-family incentives are fully reserved statewide, including in San Diego, and new requests go to a waitlist rather than an active queue. The process below still matters, though: it’s exactly what happens if funding reopens, and it’s the same framework used by the related HEEHRA rebate, which has its own separate (and also currently reserved) budget.
If you’re comparing this against other savings paths, our Heat Pump Rebates & Financing in San Diego page tracks every program that’s actually active right now, not just this one — worth a look after you finish here.
What TECH Clean California Actually Is
TECH Clean California is a state-run incentive program, funded through California Climate Investments, designed to make switching from gas furnaces and gas water heaters to electric heat pumps cheaper upfront. It works differently from a tax credit: instead of filing anything with the IRS or the state yourself, a TECH-enrolled contractor applies the rebate directly, either as an instant discount on your invoice or a check issued after the project closes. You don’t do any of the paperwork.
There are two related programs worth knowing apart:
- TECH Clean California incentives — the base rebate program, open to all income levels (“market rate”) with a larger amount for income-qualified (“equity”) households.
- HEEHRA (Home Electrification and Appliance Rebates) — a separate, larger rebate specifically for income-qualified households, funded through the federal Inflation Reduction Act but administered through the same TECH Clean California contractor network. Important: a project can receive a TECH incentive or a HEEHRA rebate, but not both.
The Step-by-Step Process
This is how it works when funding is open — and how it will work again if a region reopens:
Step 1: Confirm your home and system qualify.
Single-family homes only (duplexes, condos, and manufactured homes count). The project must be a non-heat-pump-to-heat-pump conversion — replacing an existing gas furnace or gas water heater with an electric heat pump. This is a retrofit-only program; new construction doesn’t qualify. Equipment must be ENERGY STAR-certified and appear on the program’s Qualified Products List (QPL).
Step 2: Find a TECH Clean California-certified contractor.
This is the part people miss most often — the rebate is only available if you work with a contractor who has completed TECH’s training and enrollment. A contractor who isn’t enrolled can’t reserve funds on your behalf, no matter how efficient the equipment is. You can search the certified contractor directory at switchison.org, or ask your contractor directly whether they’re TECH-enrolled before you sign anything.
Step 3: Get your income tier verified
(if applying for equity or HEEHRA rates).
If you want the higher equity incentive or a HEEHRA rebate, you’ll need income verification through the TECH Income Verification Portal, based on your household’s Area Median Income (AMI). Market-rate incentives don’t require this step.
Step 4: Your contractor reserves the incentive before installation begins.
This is the step people most often get backwards. The reservation has to be approved before the heat pump goes in — you cannot install first and apply for reimbursement afterward. If a contractor tells you to go ahead and install now and “we’ll sort the rebate later,” that’s a red flag.
Step 5: Enroll in a demand response program.
Receiving a TECH incentive for heat pump HVAC requires enrolling in an approved demand response program (something like OhmConnect). For heat pump water heaters, you’ll also need a time-of-use rate plan. This is a program requirement, not optional paperwork.
Step 6: Installation and claim submission.
Once your reservation is approved, your contractor has a set window (120 days from approval, under current program rules) to complete installation and submit the claim with full documentation.
Step 7: Receive your rebate.
The incentive is passed through 100% by the contractor — either as an instant discount at time of payment or as a check/reimbursement afterward, depending on how your contractor structures it.
What the Rebate Is Actually Worth
When funding is open, amounts vary by technology and income tier:
| Program | Typical Amount |
| Heat pump HVAC (market rate) | $1,000 – $5,000, depending on technology and up to two systems per home |
| Heat pump HVAC (equity/income-qualified) | Higher end of the range above |
| HEEHRA heat pump HVAC (income under 80% AMI) | Up to $8,000 |
| HEEHRA heat pump HVAC (80–150% AMI) | Up to $4,000 |
These can, in some cases, be layered with other savings — but stacking rules are specific, so confirm the current combination with your contractor rather than assuming.
Current Status in San Diego (2026)
This is the part most 2025-era guides get wrong, so here’s where things actually stand:
- Single-family TECH Clean California incentives closed to new sales and reservations statewide in November 2025 after the budget was nearly fully reserved.
- HEEHRA single-family rebates followed a similar path — Central and Southern California (which includes San Diego) were fully reserved by January 7, 2026, and Northern California followed by late February 2026. New requests now go to a waitlist, not an active queue.
- If you submit a reservation request now, it’s waitlisted, and it only converts into an actual rebate if additional funding is released and your project is approved off that waitlist. Don’t plan your project budget around a waitlisted reservation coming through.
- A second phase, HEEHRA Phase II, is funded but has not yet launched as of mid-2026, with no confirmed start date. It’s worth checking back periodically — but don’t delay a needed HVAC replacement waiting on a program with no launch date.
- Separately, the federal Section 25C tax credit (up to $2,000 for qualifying heat pumps) expired for any system installed after December 31, 2025. It no longer applies at all for 2026 installations, regardless of TECH or HEEHRA status.
What Actually Works Right Now Instead
Since the two biggest statewide programs are tapped out, here’s what San Diego homeowners can realistically use in the meantime:
- SDG&E’s Customer Home Electrification Readiness Program (CHERP) — helps identify which current incentives and financing options you qualify for, and walks through stacking rules.
- GoGreen Financing / On-Bill Financing — spreads the cost of a qualifying heat pump install over time rather than requiring a rebate to bring the price down.
- Manufacturer promotions — Mitsubishi and other brands periodically run their own rebates independent of state programs; ask your contractor what’s currently active.
- Getting on the HEEHRA waitlist anyway, in case funding reopens — it costs nothing to be on the list, and waitlisted projects can still qualify if approved later.
For the full, regularly updated picture of what’s active in San Diego specifically, see our Heat Pump Rebates & Financing page — we keep it current as programs open, close, and reopen throughout the year.
Should You Wait for the Rebate or Install Now?
If your furnace or AC is actively failing — see our list of signs your heating system needs repair — don’t wait on a waitlisted rebate with no guaranteed timeline. Emergency replacements rarely line up with when a program happens to reopen. If your system still has a few working years left, it’s more reasonable to monitor program status before committing. Our team handles heat pump installation across San Diego County either way, rebate or no rebate.
Frequently Asked Questions
Not for new single-family reservations as of early 2026 — the statewide budget is fully reserved, and new requests go to a waitlist. Availability changes as funding cycles refresh, so check current status before assuming either way.
You must work through a TECH Clean California-certified contractor. There’s no homeowner-direct application process — the contractor reserves the funds and handles the paperwork.
Yes. California Title 24 requires it, and it protects your warranty and your home’s resale value. Licensed contractors handle this as part of the job.
No. Since July 2025, a project can receive one or the other, not both, and you can’t switch from an approved TECH reservation to a HEEHRA rebate application.
You lose eligibility for that reservation. The rebate requires reservation approval before installation begins — this is a hard rule, not a formality.
No. The federal Section 25C credit expired for any heat pump installed after December 31, 2025, independent of TECH or HEEHRA status.
Get on the waitlist through a certified contractor at no cost, but plan your project budget assuming it may not come through. Check SDG&E’s CHERP program and financing options as your more reliable path in the meantime.
Not sure which incentives you actually qualify for right now?
Omega Air works with TECH Clean California’s contractor network and tracks program status across San Diego County. Get a straight answer on what applies to your project — no guessing based on outdated blog posts.
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