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A qualifying heat pump upgrade could lower your upfront installation cost. Start with a free estimate to compare your system options and review potential incentives.
For an eligible variable-stage gas-to-electric HVAC conversion.
Program amounts checked October 14, 2026. Eligibility and funding must be confirmed for your project.SMUD rebate reservations are first come, first served. When your qualifying job is scheduled, we handle the program reservation request so an accepted reservation can secure available funding. Start with a free estimate to plan your upgrade.
| Project | Listed rebate |
|---|---|
| Gas heating to a qualifying variable-stage electric heat pump | $3,000 |
| Gas heating to a qualifying two-stage heat pump, above 15.2 SEER2 | $2,000 |
| Existing electric heat pump to a qualifying multi-stage heat pump | $1,000 |
A hybrid electric water heater uses a heat pump to move heat from surrounding air into the tank, with electric resistance backup when needed. It is not a gas/electric dual-fuel system.
Compared with conventional electric resistance heating, heat-pump operation can use less electricity. Actual savings depend on operating mode, location, and hot-water use. Gas-to-electric conversion also replaces gas used for water heating.
| Qualifying upgrade | Listed rebate |
|---|---|
| Gas-to-electric · 50 to 64 gallon tank | $3,000 |
| Gas-to-electric · 65 to 79 gallon tank | $3,500 |
| Gas-to-electric · 80 gallons or larger | $4,000 |
| Qualifying electric-to-electric upgrade · all eligible sizes | $1,000 |
Confirm tank size, installation space, electrical capacity, condensate drainage, and the selected model’s eligibility. SMUD requires qualifying NEEA Tier III or IV equipment for climate zone 12, a thermostatic mixing valve, permitting, and a participating contractor. We’ll discuss project scope and installation requirements before recommending an upgrade.
An approved rebate can offset part of a qualifying installation. We’ll separate the equipment price, potential incentive, and remaining balance so the numbers are clear.
Consider repair, replacement, and equipment choices together. A rebate is one part of the decision. It is not a reason to replace a system that can be repaired sensibly.
Explore financing for the amount you still need to cover, subject to lender approval. A loan is repaid; a rebate is an incentive with its own rules.
Explore financingHave your SMUD bill, property address, and existing system details ready. An active, individually metered SMUD account is part of the HVAC program’s eligibility requirements.
Equipment, permits, inspections, dwelling type, and contractor participation also matter. Eligibility is determined by the program, not by your city name alone.
Ask about other qualifying Home Performance upgrades, such as sealing and insulation, and any electrical work your conversion needs. Each has separate requirements, so don’t assume every incentive can be combined.
As a participating SMUD contractor, Comfortable HVAC Services helps review your project’s rebate eligibility and handles the rebate paperwork. We’ll explain the estimated incentive and installation cost before you commit.
Planning HVAC work in Rancho Cordova, Sacramento, Folsom, Citrus Heights, Carmichael, Fair Oaks, Arden-Arcade, or North Highlands? Check your electric provider and project eligibility first. A nearby address may have different utility service.
Tell us what system you have and where your property is located. We can discuss your installation needs and the rebate questions to resolve before work starts.
We coordinate the application, permit, HERS/ECC report, AHRI equipment information, before-and-after and nameplate photos, thermostat photo, and a signed contract with the rebate shown as a line item. Gas-to-electric work also includes the required capped-gas-line documentation, sealing combustion vents, and patching flue penetrations.
Qualifying systems require appropriate certified equipment, controls, and duct testing. We verify the applicable requirements for your project before work starts.
The application allows an eligible account holder, contractor, or other payee such as a landlord to receive the payment. You choose the payee on the application. Payment typically arrives about two weeks after final approval.
Get a free installation estimate and review potential rebates before you choose a system.
Comfortable HVAC Services is an independent participating SMUD contractor. Participation does not imply SMUD endorsement or a guarantee of rebate approval. Rebate amounts and terms may change; official program rules control.
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