SMUD Heat Pump Rebates of Up to $3,000
SMUD pays up to $3,000 when you replace a gas furnace with a qualifying heat pump, and $1,000 when you replace an existing electric system with a new one. The rebate only goes through SMUD Contractor Network installers. Airflow Heating & Air is one, so we size the system, install it and submit the rebate for you.
Check my rebate
What SMUD pays
| Project | Rebate |
|---|---|
| Gas furnace to heat pumpReplace gas heating with a qualifying two-stage or variable-stage heat pump | Up to $3,000 |
| Electric to new heat pumpReplace an existing electric heating system with a new qualifying heat pump | $1,000 |
| Go Electric bonusExtra money for panel and circuit work done with a gas-to-electric conversion | Added on top |
Amounts at the time of writing (2026). The Go Electric bonus is paid per eligible circuit and panel upgrade; we confirm the current amount when we quote your project.
Who qualifies
- A SMUD customer. The home is individually metered by SMUD.
- A qualifying heat pump. Two-stage (15.2 SEER2 or higher) or variable-stage equipment.
- A SMUD Contractor Network installer. SMUD only pays these rebates through its participating contractors. We've been one since January 2020.
- Funding still available. SMUD pays rebates while program funds last, so earlier is safer.
How it works with Airflow
- 1Free in-home estimate. We look at your furnace, ducts and electrical panel, run a load calculation and show you which heat pumps qualify.
- 2Permit and installation. Our NATE-certified technicians install the system, pull the permit and schedule the inspection and any required HERS testing.
- 3We submit the rebate. As a SMUD participating contractor, we submit the rebate to SMUD on your behalf. SMUD pays it once the job is approved.
SMUD heat pump rebate FAQ
How much is the SMUD heat pump rebate?
At the time of writing (2026), SMUD offers up to $3,000 for replacing gas heating with a qualifying heat pump HVAC system, and $1,000 for replacing an existing electric heating system with a new heat pump. SMUD increased these amounts in February 2026. A separate Go Electric bonus can add money for panel and circuit work on a gas-to-electric conversion.
Do I have to use a SMUD Contractor Network contractor?
Yes. SMUD pays its heat pump HVAC rebates through participating contractors in the SMUD Contractor Network, and the contractor submits the rebate for you. Airflow Heating & Air has been a SMUD participating contractor since January 2020.
Which heat pumps qualify?
SMUD requires a two-stage heat pump rated at least 15.2 SEER2, or a variable-stage heat pump. Single-stage equipment doesn't qualify. When we quote your system, we point out which models meet SMUD's requirements.
Is there still a federal tax credit for heat pumps?
No. The federal energy efficiency tax credit (25C) ended for equipment installed after December 31, 2025. SMUD cited the loss of federal and state incentives when it increased its own rebates in 2026.
Will my electrical panel handle a heat pump?
Often, but not always. Switching from gas heat adds electric load, especially from backup heat strips. We check your panel during the estimate. If you need a panel or circuit upgrade, SMUD's Go Electric bonus can help pay for it when it's part of a gas-to-electric conversion.
How long does the rebate last?
SMUD pays rebates while funding is available and can change amounts at any time. If you're thinking about a heat pump, getting an estimate now is the best way to lock in today's program.
SMUD's rebates are offered and paid by SMUD, not Airflow Heating & Air. Eligibility, amounts and program rules are set by SMUD, depend on available funding and may change. We confirm the current rebate when we quote your system.
Comparing options? Heat pump installation in Sacramento
Ready to Switch to a Heat Pump?
Book a free estimate. We'll show you which systems qualify for SMUD's rebate and handle the paperwork.
