SMUD - Sacramento Municipal Utility District
02/18/2026 | Press release | Distributed by Public on 02/18/2026 12:52
SMUD boosts rebates for heat pumps
For Immediate Release: February 18, 2026
SMUD boosts rebates for heat pumps
SACRAMENTO, Calif. -SMUD announced new, increased rebate levels for residential heat pump installations beginning this month. These enhanced rebates represent an increase in existing programs. They're designed to help customers transition to clean, efficient electric heating and cooling technology while offsetting the recent expiration of federal tax credits and state incentive programs.
- Up to $4,000 for gas-to-electric heat pump water heater conversions.
- Up to $3,000 for gas-to-electric heat pump HVAC system conversions.
- $1,000 for electric-to-electric heat pump water heater and heat pump HVAC upgrades.
"These rebates demonstrate our commitment to making clean energy affordable and accessible for every Sacramento family," said Lora Anguay, Chief Zero Carbon Officer. "Heat pumps are a reliable technology that reduce carbon emissions, boost energy efficiency and deliver about $500 a year in real savings. By increasing our rebates, we're removing cost barriers and helping our community take part in our shared clean energy future."
SMUD's heat pump programs are a cornerstone of our 2030 Zero Carbon Plan and goal to electrify 154,000 homes by 2030. Heat pumps are highly efficient compared to traditional gas systems, providing heating and cooling while cutting energy bills, improving indoor comfort and reducing household carbon footprints. Through SMUD's Advanced Home Solutions program, more than 23,000 gas-fired space and water heating systems have already been replaced with high-efficiency electric heat pumps.
The increased rebates come at a critical time, as recent federal tax credits expired on Dec. 31, 2025, and state incentive programs have run out of funding.
MEDIA OPPORTUNITY:Interview with a Sacramento-area family who has recently installed heat pump systems. These customers can share their firsthand experience with the technology, installation process, cost savings and overall experience.
For more information about SMUD's heat pump rebates and to apply, visit smud.org/GoElectric.
About SMUDAs the nation's sixth-largest, community-owned, not-for-profit electric service provider, SMUD has been providing low-cost, reliable electricity to Sacramento County for more than 75 years. SMUD is a recognized industry leader for its innovative energy efficiency programs, renewable power technologies and for its sustainable solutions for a healthier environment. In 2024, SMUD's power supply was about 62% carbon free, which is largely influenced by the weather and amount of hydroelectricity produced. SMUD's goal is to completely eliminate carbon in its electricity production by 2030 while maintaining reliability and keeping rates among the lowest in California - on average, 50% lower than its neighboring, investor-owned utility. For more information on SMUD's Zero Carbon Plan and its customer programs, visit smud.org.
SMUD - Sacramento Municipal Utility District published this content on February 18, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on February 18, 2026 at 18:52 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]