Sacramento-area utility boosts incentives for multifamily HVAC, water heater upgrades

Multifamily rental housing providers in the Sacramento Municipal Utility District service area can now access significantly higher rebates for qualifying HVAC and water heating upgrades, with incentives of up to $350,000 per project available on a first-come, first-served basis.

The Sacramento Municipal Utility District has raised incentive amounts under its Multifamily Program for certain heat pump water heaters and inverter-driven split-system HVAC equipment.

Under the 2026 incentive structure:

• Inverter-driven split-system HVAC: $2,500 per compressor
• Apartment and common-area heat pump water heaters: $2,500 per unit
• Central heat pump water heaters (no auxiliary electric resistance): $2,000 per unit served

Exclusions may apply.

Total incentives of up to $350,000 per project are available for qualifying energy efficiency and electrification upgrades. Funding can be stacked with other incentives and is open to multifamily properties of all sizes.

The increased incentives are available immediately. Owners and operators interested in participating can complete an interest form at https://www.smud.org/Multifamily or email [email protected] for more information.