New Incentive Program for Electrification

The TECH Clean California initiative was recently launched with the aim of accelerating progress toward California’s mission to achieve carbon neutrality by 2045. The initiative, which incentivizes home electrification, is geared toward eligible contractors and focuses on both Heat Pump HVAC and Heat Pump Water Heater installations in existing single and multifamily homes. It will target 40% of the program benefits to low-income and disadvantaged communities, supporting more equitable access to sustainable technologies.

Enrolled contractors can earn at minimum $3,000 per installation, and up to $6,600 depending on the location of the project. For single family existing homes, contractors can earn:

  • $3,000 for any Heat Pump (HP) HVAC installation

  • $3,100 for replacing a gas water heater with a Heat Pump Water Heater (HPWH)

  • $1,000 for replacing an electric water heater with a HPWH.

For multifamily existing homes, the incentives vary based on whether upgrades are for individual or multiple apartment units, as well as the type of system being replaced. There are also incentives available for HVAC systems serving common areas and for electrical panel upgrades. A full outline of the incentives can be found here.

Additionally, certain regions of California, including parts of the Central Coast are located within enhanced regions where local utilities, like Central Coast Community Energy, have partnered with TECH to offer an increased incentive for contractors enrolled and participating in the partner program. The enhanced incentives for Heat Pump HVAC installations in single family homes increase with the efficiency of the unit installed and by following Quality Installation Measures, such as duct sealing/replacement and testing.

Contractors interested in participating can fill out an online enrollment form or contact TECH.contractor@energy-solution.com. Those looking to find enrolled contractors can visit The Switch Is On’s Contractor Directory. Visit https://energy-solution.com/tech-incentives/ for more information on the program, including handouts outlining the incentives, maps showing baseline and enhanced regions, and more.