SMUD, the Sacramento Municipal Utility District, lists HVAC rebates for one kind of equipment on its heating and cooling rebates page: a multi-stage heat pump. DuloCore checked on October 13, 2026.
How Much Is the SMUD HVAC Rebate in Sacramento in 2026?
As of October 13, 2026, SMUD lists $3,000 for a variable-stage heat pump replacing gas heating, $2,000 for a two-stage heat pump replacing gas, and $1,000 for an electric-to-electric heat pump upgrade.
| Heat pump HVAC project | SMUD rebate (October 13, 2026) |
|---|---|
| Variable-stage heat pump system, gas to electric | $3,000 |
| Two-stage heat pump system (15.2 SEER2 minimum), gas to electric | $2,000 |
| Two-stage or variable-stage heat pump upgrade, electric to electric | $1,000 |
The amounts come from SMUD's heating and cooling rebates page, which says rebates are subject to availability of funding. For SMUD rebates on water heaters, appliances and other equipment, see the SMUD home energy rebates overview.
Which HVAC Systems Qualify for a SMUD Rebate?
Only heat pumps with a two-stage or variable-stage compressor rated at least 15.2 SEER2 qualify. SMUD says single-stage systems are not eligible.
A heat pump is an air conditioner that can run in reverse, so one system heats and cools. SMUD's minimum system requirements apply to package, split and mini-split systems:
- A variable-stage or two-stage compressor, 15.2 SEER2 or higher.
- A connected thermostat that is Wi-Fi enabled and 7-day programmable.
- New ductwork, if installed, insulated to R8 or higher.
- A mini-split must serve the entire home.
The page lists no rebate for a gas furnace or for an air conditioner that only cools. The home must have an active SMUD account and its own SMUD meter. Single-family homes and buildings of up to 4 units are eligible. SMUD says mobile homes on a chassis and axle may not qualify.
Do I Need a SMUD Contractor, and How Is the Rebate Paid?
Yes. The heat pump must be installed by a participating contractor in the SMUD Contractor Network, and that contractor submits the rebate application.
SMUD's steps are: choose a network contractor, install a qualifying system, and sign the rebate application the contractor provides. The contractor may offer the rebate amount upfront and collect it from SMUD after the project is completed. SMUD's residential contractors page says the network directory can be searched by project type, location, languages spoken and whether financing is offered.
For projects in its Home Performance Program, SMUD says the rebate can be paid to the customer or the contractor, and payment typically goes out within 2 weeks of final paperwork approval. Confirm who receives the check before work starts.
What Is the Go Electric Bonus, and Does SMUD Pay for Ducts?
SMUD states two figures for Go Electric rebates: up to $4,000 on one page and $2,000 on two others. Ducts are separate.
Ask the contractor which amount applies before signing.
- Heating and cooling page. Go Electric rebates for a smart panel, subpanel or new circuit, up to $4,000. A gas-to-electric conversion is required for the subpanel and circuit rebates.
- Home Performance Program page. Go Electric bonus and panel upgrade, $2,000. A gas-to-electric conversion is required for the panel upgrade rebate.
- Go Electric page. SMUD's Go Electric bonus page says rebates up to $2,000: up to $500 for each eligible circuit, up to a total of $2,000, and up to $500 for a sub-panel. An existing gas furnace or gas water heater must be replaced with a qualifying heat pump.
Ducts fall under a separate package. SMUD's Seal and insulate page lists rebates up to $3,000 for air sealing, installing and sealing new ductwork, and attic insulation.
Is There a PG&E Furnace Rebate or a State Heat Pump Rebate?
PG&E's rebates page listed no furnace or HVAC rebate on October 13, 2026. TECH Clean California and HEEHRA single-family incentives are fully reserved.
- PG&E. If PG&E supplies your gas, its Rebates & Incentives page is the place to look. It lists a generator and battery rebate and electric vehicle rebates. It does not mention furnaces, heating or cooling.
- TECH Clean California single-family (fully reserved). The TECH incentives page says TECH Clean California single-family heat pump HVAC incentives are fully reserved and not accepting new reservations.
- HEEHRA single-family (fully reserved). The California Energy Commission says HEEHRA rebates for single-family home retrofits are fully reserved statewide as of February 24, 2026.
DuloCore's California HVAC rebates guide for 2026 covers other utilities, and the eligibility check shows programs a household may qualify for.
Frequently Asked Questions
Can I get a SMUD rebate for a new air conditioner or gas furnace?
SMUD's heating and cooling rebates page lists rebates for heat pump systems only, and it says single-stage systems are not eligible for SMUD rebates. It lists no rebate for a gas furnace or a cooling-only air conditioner.
Did the federal heat pump tax credit end?
Yes. The federal home energy credit ended on December 31, 2025. SMUD's heating and cooling page says the credit applies only to heat pump systems installed between January 1, 2023 and December 31, 2025. See federal home energy tax credits ended.
Do I have to do every upgrade at once?
No. SMUD's Home Performance Program page says a project can be done in phases if the whole project is completed within five years of the first application.
Replacing a furnace or air conditioner in Sacramento? Estimate rebates for your ZIP code with the rebate calculator.