Real rebates, real sources
Federal, California, and utility programs that can meaningfully change what a heat pump or high-efficiency system actually costs. Every program links to its official source — because the amounts move.
Verify the current amount with the official source.
Every program below links out to the utility or agency that runs it. Funding phases open and close by quarter, per-appliance caps change, and eligibility can shift by service territory. Cloud Comfort helps you file — but the dollar figure your utility publishes today is the number that counts, not a number pasted here.
Programs South Bay homeowners actually qualify for
The ones below are the programs we regularly submit for our customers. Federal credits stack with utility rebates in most cases; state programs can stack with federal but sometimes not with each other. Ask us to check stacking for your specific project.
- IRS · federal tax creditOfficial program page
IRA § 25C — Energy Efficient Home Improvement Credit
Applies to: Heat pumps, heat-pump water heaters, high-efficiency AC and furnaces (per equipment eligibility list). Nonrefundable credit against your federal income tax.
Status: Active through 2032
Annual cap and per-equipment sub-caps apply; heat pumps and heat-pump water heaters have their own credit limit. Consult a tax professional for your situation — this is a tax credit, not a rebate paid at purchase.
- California Energy Commission (contractor-processed)Official program page
TECH Clean California — Heat Pump Incentive
Applies to: Whole-home heat pumps and heat-pump water heaters. Paid to the contractor and passed through as a discount on your invoice.
Status: Program open — funding phased by region and equipment type
Funding rounds open and close by utility service territory. Ask us for the current phase status when you request a quote — we submit incentives on your behalf when you install a qualifying system.
- SoCalGas · residential energy-efficiency rebateOfficial program page
SoCalGas Heat Pump Water Heater Rebate
Applies to: Heat-pump water heaters replacing gas water heaters at a SoCalGas-served address.
Status: Active — verify current amount on the program page
Rebate size varies by installation type (whole-home vs. supplemental) and can stack with the federal § 25C credit. Program terms and available funding update by quarter.
- Los Angeles Department of Water and PowerOfficial program page
LADWP — Consumer Rebate Program (residential)
Applies to: High-efficiency HVAC upgrades for LADWP electric customers (parts of LA served by LADWP — not the entire South Bay; check your utility bill for LADWP vs. Southern California Edison).
Status: Active — offerings updated seasonally
Applies only if your electric service is billed by LADWP. Most of Torrance and adjacent South Bay cities are on Southern California Edison — see SCE rebates below.
- Southern California EdisonOfficial program page
Southern California Edison — Marketplace Rebates
Applies to: Heat pumps, smart thermostats, and select HVAC equipment for SCE electric customers (covers most of Torrance and the South Bay).
Status: Active — inventory rotates
SCE's marketplace lists current instant-rebate equipment. What's eligible and the amount can change without notice; open the marketplace page when you're comparing bids.
- California Energy Commission (federal-state pass-through)Official program page
HEEHRA — High-Efficiency Electric Home Rebate Act
Applies to: Income-qualified whole-home electrification (heat pump, heat-pump water heater, panel upgrade, wiring, insulation). Rebate is paid at purchase, not as a tax credit.
Status: Program launch phased — check the CEC page for current California availability
HEEHRA availability in California has been staged. Do not assume the program is open today for your zip code without checking the CEC page — status has changed multiple times since 2024.
We file the paperwork with you
Rebates only lower your bill if someone actually submits them. On qualifying installs, we handle the utility submission from our side and hand you the tax-credit paperwork for your accountant — no guessing which form goes where.
- 1
During your estimate
We run the equipment you're considering against every program above and tell you which rebates it qualifies for — with the current dollar amount from the program's page, not a guess.
- 2
Contractor-side submissions
For programs like TECH Clean California, we file on your behalf and reflect the rebate as a discount on the invoice — you never pay the full sticker and wait months for a check.
- 3
Homeowner-side documentation
For the § 25C federal tax credit, you file with your income taxes — we send you a packet with the equipment's Manufacturer Certification Statement and your paid invoice so your accountant has what they need.
Related decisions
Why heat pumps qualify for most of the biggest rebates
The technology's efficiency edge is the reason it's the target of federal and state electrification dollars.
Read the guideHeat pump vs. furnace — the honest math for LA
The rebate is only part of the story. Operating cost + Rule 1111 direction is the other half.
Read the comparisonFinancing options
Rebates lower the sticker; financing spreads what's left. We'll walk you through what monthly looks like with the rebate applied.
See financingWant to know exactly what your project qualifies for?
We'll run your specific address and equipment against every program above during the estimate.