The Winner: Los Angeles (LADWP)
If you live in Los Angeles, you're in the best utility territory in California. LADWP's heat pump rebate is unmatched: $2,500 per ton of cooling capacity. A typical 4-ton system nets you $10,000 in utility rebate alone. Add state and federal incentives, and you're looking at nearly $16,000 in total rebates.
Where You Live Really Matters
Utility rebate amounts in California are wildly different depending on which company controls your grid. LADWP pays 5x more than SDG&E for the same system. That's why location is everything.
All 25 California Cities Ranked by Rebate
| Rank | City | Utility | Rebate (4-ton system) |
|---|---|---|---|
| 1 | Los Angeles | LADWP | $10,000+ |
| 2 | Long Beach | LADWP | $10,000+ |
| 3 | Burbank | LADWP | $8,970 (See: 7-rebate stacking guide) |
| 4 | Pasadena | LADWP | $10,000+ |
| 5 | Glendale | LADWP | $10,000+ |
| 6 | Santa Monica | LADWP | $10,000+ |
| 7 | Sacramento | SMUD | $9,750+ (Feb 2026 increase) |
| 8 | Folsom | SMUD | $9,750+ |
| 9 | Roseville | SMUD | $9,750+ |
| 10 | Rancho Cordova | SMUD | $9,750+ |
| 11 | San Francisco | PG&E | $3,000-$4,500 (HEEHRA exhausted Feb 2026) |
| 12 | Oakland | PG&E | $3,000-$4,500 (Program closed) |
| 13 | San Jose | PG&E | $3,000-$4,500 (Program closed) |
| 14 | Berkeley | PG&E | $3,000-$4,500 (Program closed) |
| 15 | Fremont | PG&E | $3,000-$4,500 (Program closed) |
| 16 | Riverside | SCE | $3,000-$4,500 |
| 17 | San Bernardino | SCE | $3,000-$4,500 |
| 18 | Ontario | SCE | $3,000-$4,500 |
| 19 | Moreno Valley | SCE | $3,000-$4,500 |
| 20 | San Diego | SDG&E | $500-$1,500 |
| 21 | Chula Vista | SDG&E | $500-$1,500 |
| 22 | Escondido | SDG&E | $500-$1,500 |
What If You're in a Low-Rebate City?
If you live in San Diego (SDG&E territory), your utility rebate is lower. But don't skip the heat pump. You still get:
- $500-$1,500 from your utility
- $2,250 from California state (if income-qualified)
- $3,000 from federal tax credit
- $50-$100 from smart thermostat
Total: $5,800-$6,850. That's still enough to pay back your heat pump in 4–5 years.
Why PG&E Closed Its Program in February 2026
PG&E's heat pump rebate (HEEHRA) ran out of funding in February 2026. The program was popular, and they exhausted the budget. As of now, PG&E homeowners in the Bay Area have no utility rebate—only state and federal. There's talk of refunding the program in 2027, but don't count on it.
Action: If you're in PG&E territory and thinking about a heat pump, apply for the state and federal rebates now. You can't wait.
SMUD's February 2026 Increase
SMUD raised its rebate in February 2026, making Sacramento one of the best places in California to get a heat pump. If you're considering a move, Sacramento just got more attractive.
Finding Your City
All 25 cities above are links. Click on your city to see detailed rebate info, local installer options, and FAQs specific to your area.