The SMUD heat pump water heater rebate depends on what you replace and how big the new tank is, and SMUD also publishes what its customers actually pay for the installation. DuloCore checked the amounts, the costs and the rules on SMUD's pages on October 14, 2026.
How Much Is the SMUD Heat Pump Water Heater Rebate in 2026?
As of October 14, 2026, SMUD pays $3,000 to $4,000 to replace a gas water heater with a heat pump model, depending on tank size, and $1,000 to replace an electric one, subject to funding.
| Upgrade (SMUD rebate table, October 14, 2026) | Tank size | SMUD rebate |
|---|---|---|
| Gas to heat pump water heater | 50 gallons or more | $3,000 |
| Gas to heat pump water heater | 65 gallons or more | $3,500 |
| Gas to heat pump water heater | 80 gallons or more | $4,000 |
| Electric to heat pump water heater | All sizes | $1,000 |
| Go Electric Bonus or panel upgrade | Gas-to-electric conversion required | $2,000 |
SMUD's appliance rebates page says the rebate is subject to availability of funding. A heat pump water heater moves heat from the air into the water, like a refrigerator running in reverse, instead of making heat with a flame or a heating element.
What Does a Heat Pump Water Heater Cost in Sacramento After the Rebate?
SMUD's customer project data puts the median installed cost at $6,220 for a gas-to-electric switch and $5,416 for electric-to-electric, before any rebate or tax credit.
SMUD's cost table uses actual SMUD residential projects in its Advanced Home Solutions Rebates program over the past 12 months, refreshed each quarter:
| Installation | Median cost | Lowest | Highest |
|---|---|---|---|
| Gas to electric, 50 gallon | $5,968 | $3,100 | $13,395 |
| Gas to electric, 65 gallon | $5,988 | $2,710 | $11,874 |
| Gas to electric, 80 gallon | $6,800 | $4,000 | $13,172 |
| Electric to electric, 50 gallon | $5,279 | $1,760 | $10,595 |
| Electric to electric, 65 gallon | $5,427 | $2,500 | $13,255 |
| Electric to electric, 80 gallon | $5,588 | $4,168 | $9,549 |
Subtracting the rebate from SMUD's median is DuloCore's arithmetic on SMUD's figures, not a SMUD number: an 80-gallon gas-to-electric job at $6,800 less the $4,000 rebate leaves $2,800, and a 50-gallon one at $5,968 less $3,000 leaves $2,968. Your price can differ. SMUD lists four cost factors: the installer, the distance from the water heater to the electrical panel, spare amperage in the panel, and moving the water heater. It recommends getting at least three bids.
Which Heat Pump Water Heaters Qualify for the SMUD Rebate?
Units that meet NEEA Tier III or IV for climate zone 12, with a Uniform Energy Factor of 2.87 or higher, installed with a thermostatic mixing valve.
The Uniform Energy Factor (UEF) is a water heater efficiency rating. SMUD's Rebates for My Home page links to a list of eligible units. Other program requirements on the appliance rebates page:
- The resident or homeowner must be an active SMUD customer.
- A thermostatic mixing valve, which blends hot and cold water to keep the tap temperature safe, must be installed.
- The project must be permitted and pass the required inspections.
- The home must be individually metered by SMUD; multi-unit dwellings of up to four units must be individually metered.
- Manufactured, modular and factory-built homes have extra requirements.
How Do I Apply for the SMUD Water Heater Rebate?
You don't apply yourself. A contractor from SMUD's Contractor Network installs the unit and submits the rebate application after you sign it.
The steps on the appliance rebates page, linked above:
- Choose a participating contractor from the SMUD Contractor Network.
- Have a qualifying heat pump water heater installed.
- Sign the rebate application your contractor gives you; the contractor submits it.
- Receive the rebate. SMUD notes your contractor may take the rebate off your price up front and collect it from SMUD after the project.
For the status of a rebate, SMUD lists its Rebate Center at 1-916-732-7550. DuloCore doesn't file rebate applications; the contractor does.
Will a Heat Pump Water Heater Work in My Home?
It depends. Check the electrical circuit, space and airflow, noise and any recirculation pump first. A Contractor Network installer can help you decide.
SMUD's appliance rebates page lists what to look at:
- Electrical: most models need a 240V circuit and a 30-amp breaker; a growing number run on a 120V circuit with a 15 or 20-amp breaker.
- Size and airflow: the unit may be taller and wider than your old one and needs airflow. A garage is usually fine; a utility closet may need more work.
- Noise: about like a loud refrigerator.
- Exhaust air: it blows out cold air, which can help cool a garage, or can be ducted outdoors.
- Upkeep: an air filter that needs periodic cleaning.
- Recirculation: with an automated recirculation pump, a heat pump water heater may not be a good fit.
SMUD also explains the two common modes. Heat pump only is the most efficient and saves the most on bills but heats water more slowly. Hybrid or eco mode uses the electric elements when needed, which raises the bill if they run often.
Frequently Asked Questions
Is SMUD giving rebates in 2026?
Yes. As of October 14, 2026, SMUD's Rebates for My Home page lists the heat pump water heater rebate of up to $4,000 alongside other home offers. The SMUD home energy rebates guide covers heat pump HVAC, insulation and the rest.
Did the federal heat pump water heater credit end?
Yes. The federal 25C credit ended for property placed in service after December 31, 2025, and SMUD's page says the credit applies only to heat pump water heaters installed between January 1, 2023 and December 31, 2025. See which federal credits ended.
Can I combine the SMUD rebate with other incentives?
SMUD says its heat pump water heater rebate can be stacked with statewide incentive programs and suggests asking your contractor what else applies. The California heat pump water heater guide compares SMUD with other utilities.
In SMUD territory? Estimate rebates for your ZIP code with the free rebate calculator, or see every verified SMUD program on the SMUD programs page.