California Furnace and Air Conditioner Rebates (2026)

Updated September 28, 2026. Written by Sam Menard.

Short answer: Most California homes can't get a rebate for a new furnace or air conditioner in 2026. PG&E's rebate page lists no furnace, AC or heat pump rebate. The two big statewide heat pump programs are full: TECH Clean California is waitlist-only, and HEEHRA was fully reserved on February 24, 2026. The federal tax credits ended December 31, 2025. What's still open: SMUD customers get up to $3,000 for a heat pump plus up to $2,000 when switching off gas, and income-qualified PG&E customers can get a broken or unsafe gas furnace repaired or replaced free through the Energy Savings Assistance program.

What rebates exist for heating and cooling in California?

UpgradeProgramWhat you get
New gas furnacePG&E / SCE / SDG&ENo rebate. Income-qualified homes can get an unsafe or broken furnace repaired or replaced free (ESA).
New central air conditionerPG&E / SCE / SDG&ENo rebate listed for homeowners.
Heat pump (statewide)TECH Clean CaliforniaWaitlist only since Nov 14, 2025. Was $1,000 to $5,000.
Heat pump (income-qualified)HEEHRA (state IRA rebates)Fully reserved Feb 24, 2026; new requests waitlisted. Was up to $8,000.
Heat pump (Sacramento)SMUDUp to $3,000 for a two-stage or variable-speed heat pump, plus up to $2,000 Go Electric bonus when replacing a gas furnace.
Heat pump (LA city)LADWPCheck LADWP's current Consumer Rebate Program amounts.
Federal tax creditIRS 25CEnded for installs after Dec 31, 2025.
Free upgrades (income-qualified)Energy Savings Assistance (ESA)Free furnace and water heater repair or replacement if PG&E finds the gas unit broken or unsafe. Owners and renters.

Should you replace your furnace or switch to a heat pump?

It depends on your furnace's age, your fuel, and your income. Find the row that sounds like you:

If…Our honest advice
Your gas furnace works and your AC is dyingReplace the AC with a heat pump. It costs about the same, cools the same, and can take over most heating. Keep the furnace as backup.
Your gas furnace is failing and you're a SMUD customerGet a heat pump quote first. Up to $5,000 in SMUD rebates often makes it cheaper than a new furnace plus AC.
Your gas furnace is failing and you're PG&E, SCE or SDG&EThere's no rebate either way right now. Compare real quotes for a furnace + AC and for a heat pump. Coastal and valley winters are mild, so heat pumps work well.
Your income is limitedApply for Energy Savings Assistance first. If your furnace is broken or unsafe, it can be fixed or replaced free.
You're on a TECH or HEEHRA waitlistDon't sign until your reservation is confirmed. Contractors apply for these, so ask yours to check.

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Common questions

Does PG&E give a rebate for a new furnace?

No, not for most homes. PG&E's rebate page lists no furnace rebate in 2026. Income-qualified customers can get a broken or unsafe gas furnace repaired or replaced free through the Energy Savings Assistance program.

Is there a California rebate for a new air conditioner?

Not from PG&E, SCE or SDG&E for most homeowners. A heat pump replaces an AC and also heats, but the statewide heat pump rebates are full right now.

Is TECH Clean California still available?

Single-family incentives were fully reserved on November 14, 2025. New requests go on a waitlist.

Can I still get the federal tax credit for a heat pump or furnace?

No. The 25C credit ended for equipment installed after December 31, 2025.

What does SMUD pay to switch from a gas furnace?

Up to $3,000 for a qualifying heat pump, plus up to $2,000 from the Go Electric bonus when you replace a gas furnace or gas water heater.

Sources, checked September 28, 2026: PG&E rebates and incentives · PG&E Energy Savings Assistance · TECH Clean California · California Energy Commission: HEEHRA · SMUD rebates · SMUD Go Electric bonus · IRS 25C credit. Amounts change; confirm with the program before you buy.

Related: California rebates by city · California heat pump rebates you can stack · PG&E pre-approval guide · Furnace and AC vs heat pump

Other regions: British Columbia · Ontario · Alberta

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