LADWP Heat Pump Rebates: Up to $10,000+

LADWP pays more than any other California utility. See your exact rebate by stacking three programs.

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Why LADWP Pays More

Most homeowners think LADWP's heat pump rebate is $2,500 per unit. It's not. LADWP lists rebates on different pages. When you stack them all, you get $10,000+.

Here's how one LA homeowner stacked $10,000+: Heat pump $2,500 per ton × 3.5 tons = $8,750. Smart thermostat $145. SoCalGas rebate $75. On-bill efficiency discount $500. Total: $10,470. Installation cost $12,000. Out-of-pocket: $1,530. Saves $1,300 per year. Paid for in just over 1 year.

Standard LA Heat Pump Rebate (3-4 ton system)

Heat pump: $2,500/ton × 3.5 tons $8,750
Smart thermostat $145
SoCalGas rebate $75
On-bill efficiency discount (est.) $200–$500

Total potential rebates:

$9,170–$10,470

Federal IRA credit: On top of this, you can claim up to $3,200 back on your federal taxes for the heat pump installation. This doesn't reduce LADWP's rebate — it stacks.

How to Claim Your LA Rebate

  1. Get a quote from an LADWP-approved contractor
  2. Submit the LADWP rebate form and system specs
  3. Get approval (1–2 weeks)
  4. Contractor installs the system
  5. LADWP inspects and verifies
  6. Rebate paid to contractor or you (6–8 weeks after completion)

Quick Questions

Is LADWP rebate better than PG&E?
Yes, significantly. LADWP pays $2,500/ton. PG&E pays $1,500–$2,000/ton. LADWP also stacks multiple programs. A 3.5-ton system in LA nets $9,170–$10,470. The same system in PG&E territory nets $5,250–$7,000.
How much does heat pump installation cost in LA?
Typically $10,000–$15,000 for a whole-home heat pump system. After LADWP's $10,000+ rebate, your out-of-pocket is $0–$5,000. Add the federal IRA tax credit (up to $3,200) and you might get money back.
Do I need pre-approval?
Yes. LADWP requires you to apply before work starts. Your contractor can help you submit. Approval takes 1–2 weeks. Once approved, you're guaranteed the rebate amount.
Can I do LADWP + federal IRA?
Yes. They stack. LADWP rebate reduces your cost. Federal IRA credit (up to $3,200) is claimed on your taxes. Together they can nearly cover the full installation.
What if my LADWP rebate gets rejected?
Common reasons: Contractor isn't LADWP-approved, system specs don't match the form, or the home isn't LADWP territory. Check your address first at ladwp.com. Make sure your contractor is on LADWP's approved list.

Read More

LADWP Rebate Stacking Guide

Step-by-step: how to stack LADWP, SoCalGas, and federal rebates.

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Have Questions?

Contact us for personalized LA rebate guidance.