SDG&E's retail rebate coupons for water heaters have ended, and so has the federal tax credit. What remains in 2026 is SDG&E's Energy Savings Assistance program, which can replace a water heater at no cost for income-qualified households.
So the answer depends on your household income. Here's what each official page showed on October 9, 2026.
Does SDG&E Still Have a Water Heater Rebate?
No retail rebate is open. SDG&E's rebates page says the Golden State Rebates Program's retail rebate offerings have ended. That program's product list showed $500 for a heat pump water heater replacing an electric water heater, so that coupon has ended too.
The same page gives a contact for questions about the program's closure: (866) 258-4937. Our rebate catalogue also lists SDG&E's heat pump water heater rebate as closed.
Can I Get a Free Water Heater Through SDG&E?
Possibly, if your household qualifies for Energy Savings Assistance (ESA). Its ESA Basic Plus tier lists water heater repair or replacement, heat pump water heaters, water heater blankets and heater pipe insulation. ESA Basic Plus needs income documentation, and not every customer qualifies for every item.
SDG&E also says existing appliances must meet age requirements to qualify for replacement. A co-pay may be required from landlords who own the appliances and pay the tenant's utility bills.
Who Qualifies for SDG&E's ESA Program?
Homeowners and renters with an active SDG&E residential account in a single-family or mobile home qualify if they meet the income rules. Duplexes, triplexes and fourplexes count as single-family homes.
You qualify through income in one of two ways:
- Taking part in a listed public assistance program, such as Medi-Cal for Families A and B, CalFresh, WIC, LIHEAP, SSI or CalWORKs.
- Having a household income within these limits (effective June 1, 2026, to May 31, 2027):
| Household size | Maximum combined annual income |
|---|---|
| 1 | $39,900 |
| 2 | $54,100 |
| 3 | $68,300 |
| 4 | $82,500 |
| 5 | $96,700 |
| 6 | $110,900 |
| 7 | $125,100 |
| 8 | $139,300 |
For each additional household member, add $14,200. SDG&E says these limits equal 250% of the Federal Poverty Guidelines.
How Do I Apply?
Submit SDG&E's ESA interest form or call its outreach contractor, Richard Heath & Associates, at 1-619-387-4757 or 1-866-597-0597. A program specialist confirms eligibility, then a contractor visits for an in-home assessment and installs the approved upgrades.
Some upgrades may need the property owner's approval, so renters should check with their landlord early.
What Is the ESA Whole Home Pilot?
It's a separate SDG&E pilot that offers qualified homeowners and renters upgrades valued at up to $25,000 at no cost, including a hot water heater upgrade. SDG&E says it is only available to 250 customers, chosen by household income, energy savings and zip code.
Interested households can contact the pilot's contractor, MAROMA Energy Services, at 619-848-7324. Customers who use propane for heating or cooling aren't eligible.
Is There Still a Federal Tax Credit?
No. IRS Fact Sheet FS-2025-05 says the 25C Energy Efficient Home Improvement Credit ended for property placed in service after December 31, 2025, so a water heater installed in 2026 gets no federal credit.
Our water heater tax credit guide explains what 2025 installations could still claim before that credit ended.
What If I Don't Qualify for ESA?
Then no SDG&E water heater rebate was open on October 9, 2026. Check the free rebate calculator before you buy, since it lists only programs we've verified for your address.
If you're comparing models, the heat pump water heater rebates guide shows what other California utilities pay, which helps if you move or own property elsewhere in the state.
Official Sources
Every program detail comes from SDG&E's own pages, and the federal end date from the IRS, all checked on October 9, 2026.
- SDG&E Rebates, which states that the Golden State Rebates retail offerings have ended
- SDG&E Energy Savings Assistance, with eligibility, income limits and the ESA Basic Plus product list
- SDG&E ESA Whole Home Program, the 250-customer pilot
- IRS FS-2025-05, the IRS table showing when each credit ended
Frequently Asked Questions
Does SDG&E give a rebate for a heat pump water heater in 2026?
Not as a retail rebate. The Golden State Rebates retail offerings, which included $500 for a heat pump water heater replacing an electric one, have ended, according to SDG&E's rebates page. Income-qualified customers can still get a heat pump water heater through Energy Savings Assistance.
What is the income limit for SDG&E's ESA program?
From June 1, 2026, to May 31, 2027, the limit is $39,900 for a household of one, $82,500 for four and $139,300 for eight, plus $14,200 for each additional member. You can also qualify through programs such as CalFresh, Medi-Cal for Families A and B, or WIC.
Can renters in San Diego get a free water heater?
Yes, renters can apply, because SDG&E's ESA program serves both homeowners and renters with a residential meter. Some upgrades may need the property owner's approval.
Replacing a water heater in San Diego? See the verified programs for your address with the free rebate calculator.