On this page
The big change: federal credits after 2025
Federal legislation passed in 2025 ended the two tax credits most LA homeowners used for these projects — the Residential Clean Energy Credit (Section 25D, covering purchased solar, batteries, and related equipment) and the Energy Efficient Home Improvement Credit (Section 25C, covering heat pumps, insulation, and similar upgrades) — for systems placed in service after December 31, 2025. What that means in practice, as of this verification:- If you purchased and completed a system in 2025 or earlier, credits may apply to that tax year, subject to eligibility — a question for your tax professional at filing time.
- For new projects in 2026, a direct homeowner-purchase federal credit is generally no longer available. Some third-party ownership and financing structures may still access federal incentives available to businesses, subject to eligibility, program rules, and current law — this depends entirely on structure and timing, and we review options case by case rather than promise outcomes.
State programs
SGIP: Self-Generation Incentive Program (batteries)
- What: battery-storage incentives with eligibility and funding controlled by the applicable SGIP budget category and program administrator.
- Who: eligibility is not limited to SCE customers. In California, SGIP administration can involve SCE, SoCalGas, PG&E or SDG&E depending on service and category. LADWP also has a Residential Solar and Storage Equity pathway for qualifying applicants. In Southern California, SoCalGas may be the relevant administrator for eligible gas customers whose electric service is from a non-SCE utility.
- Status (Oct 2026): funding varies by administrator and category, and some residential categories are closed, exhausted or waitlisted. Do not count an SGIP amount as project savings until the applicable administrator has formally approved and reserved it. See our SGIP Program 2026 battery rebate status guide.
TECH Clean California (heat pumps)
- What: incentives for heat pump HVAC and heat pump water heaters, with availability varying by technology, territory and funding source.
- Current statewide status: TECH Clean California reports its general single-family heat pump HVAC and heat pump water-heater incentives as fully reserved and not accepting new reservations. Project-specific availability should still be checked because separate utility, multifamily or future funding pathways may differ.
- San Fernando Valley opportunity: TECH has announced a separate incentive rollout for Aliso Canyon Priority Communities, including parts of Porter Ranch, Granada Hills, Northridge, Chatsworth, Canoga Park, Reseda, West Hills and Van Nuys. As of this review, contractor enrollment and some program resources are still shown as coming soon, so launch status must be verified for the exact ZIP code before quoting savings.
HEEHRA: income-qualified electrification rebates
- What: California's Home Electrification and Appliance Rebates for qualifying households and eligible electrification measures.
- Current status: HEEHRA single-family rebates are fully reserved statewide as of February 24, 2026, and new single-family income verification applications are no longer being accepted. Southern California single-family funding had already become fully reserved on January 7, 2026. TECH also reports multifamily HEEHRA rebates fully reserved statewide as of September 1, 2026, with no new reservations currently accepted.
- Waitlist rule: waitlisted projects are only eligible if a reservation is approved before the qualifying heat pump is installed. Existing approved reservations continue under program rules. See our current Los Angeles heat pump rebate status guide.
California Quality Residential HVAC Services (QHVAC): contractor quality incentives
California's Quality Residential HVAC Services program supports participating contractors who complete qualifying HVAC work under program standards. Quality installation requirements emphasize load calculations, proper system design, installation adjustments, testing, inspections and performance verification.
Who receives the incentive? QHVAC lists contractor incentives of $800 for a qualifying Tier I Quality Installation and $1,600 for Tier II, subject to enrollment, eligibility, service verification and available funding. These are contractor program incentives, not homeowner rebates. Do not subtract them from a homeowner quote or assume HUS participates without checking current enrollment. Rates and budgets may change.
When comparing HVAC proposals, homeowners can ask how a contractor evaluates system sizing, ductwork, airflow, installation testing and final performance. Read the official QHVAC homeowner resources, compare questions to ask an HVAC installer, or plan an HVAC project. For specific availability, call (833) 446-6387.
Utility programs (this matters: LADWP ≠ SCE)
Los Angeles splits between two very different utilities, and nearly every incentive and solar-compensation question depends on which one serves you.LADWP (City of LA)
- Municipal utility — not governed by CPUC rules, so state-mandated programs and the SCE-style Net Billing Tariff don't automatically apply.
- Runs its own efficiency rebates and its own solar compensation rules. For 2026 heat-pump HVAC, LADWP currently lists $1,000-$1,250 per ton for qualifying central ducted, split and packaged systems and $1,500-$2,500 per ton for qualifying ductless mini-split and multi-split systems, subject to current efficiency tiers, AHRI documentation, paid invoice, final permit and property eligibility. For the exact equipment tiers and application documents, use our 2026 LADWP heat pump rebate guide and AHRI checklist. Verify the selected system against LADWP's current program before relying on an incentive.
SCE (most of LA County outside the city, plus OC cities it serves)
- CPUC-jurisdiction: solar compensation follows the Net Billing Tariff ("NEM 3.0"), which pays much less for exported power than older net metering — the economic case now leans heavily on pairing solar with a battery and the right rate plan.
- SGIP applies (above); SCE also runs rate-plan and equipment programs that change year to year.
What to do before counting any incentive
- Confirm the utility account: identify LADWP, SCE, SoCalGas or the applicable municipal utility from the current bill.
- Check the exact program and budget: verify current funding, waitlist or reservation status for the project address and customer category.
- Match the equipment before purchase: confirm model, efficiency tier, AHRI match, permit requirements and any contractor qualifications.
- Do not deduct unapproved incentives: use the gross project price until the responsible program issues the required written approval or reservation.
- Plan the project: use the Home Upgrade Specialist project planner to compare HVAC, solar, roofing and battery options.
Quick reference
| Upgrade | Programs to check (Oct 2026) |
|---|---|
| Heat pump HVAC | LADWP or SCE utility rebates · TECH project-specific availability · HEEHRA single-family currently fully reserved statewide · San Fernando Valley TECH rollout where eligible |
| Home battery | SGIP by applicable administrator and budget category, including SCE, SoCalGas and qualifying LADWP RSSE pathways · financing structures reviewed case by case |
| Solar | Utility compensation rules (LADWP vs SCE Net Billing) · pairing with battery · ownership-structure review |
| Roofing | Generally no direct incentive; Class A fire-rated requirements may interact with insurance — ask your insurer |
| EV charger | Utility programs (LADWP/SCE change these frequently) |
San Fernando Valley TECH Clean California pathway
TECH Clean California has a separate San Fernando Valley incentive pathway for communities impacted by the Aliso Canyon Gas Storage Facility. Its current public program page identifies Priority Communities including Porter Ranch, Granada Hills, Northridge, Chatsworth, North Hills, Canoga Park, Reseda, Winnetka, West Hills, Van Nuys, and Lake Balboa, with heat pump HVAC and heat pump water heater incentives planned for eligible residents.
Important: TECH's public page still describes this rollout as beginning in late summer 2026 and still lists several enrollment resources as coming soon. Do not treat an address as funded or reservation-ready until the live program status, ZIP eligibility, contractor qualification, equipment eligibility, and reservation requirements are confirmed for that project. Check the current TECH San Fernando Valley program page.
Application responsibility varies by program. See the detailed homeowner-vs-contractor rebate checklist below for reservations, documentation, payee and final-approval questions.
SCE Home Performance Plus
Southern California Edison currently lists Home Performance Plus for qualifying residential electric customers who rent or own a single-family detached home or a unit in a building with up to four units within designated Disadvantaged or Low-Income communities. The public SCE program description includes a no-cost home energy assessment, enhanced rebates for eligible energy-saving upgrades, and one-on-one guidance.
Eligibility depends on the service address, housing type, current program rules, and the exact measure being installed. For heat-pump HVAC or heat-pump water-heater projects, verify the live measure requirements before purchasing equipment because prerequisites and funding can change. Do not deduct an HPP incentive from a project price until the specific property and measure are confirmed. Check SCE's current Home Performance Plus listing.
Financing is different from a rebate
Programs such as GoGreen Home are financing pathways, not utility rebates. Loan availability, rates, terms, lender service areas, underwriting, and special promotions can change. See our home upgrade financing guide for financing options, and keep financing decisions separate from rebate eligibility.
How we handle this on real projects
Every proposal we prepare lists which programs the project may qualify for at that moment, with current program status — because "what's available" changes quarter to quarter, we verify at proposal time rather than quoting this page. Incentives are never assumed in the decision math until the program has confirmed eligibility.Want this checked for your specific address?
Utility territory, income tiers, fire-zone status, and equipment choice all change the answer. The HUS Home Upgrade Planner helps map which programs may apply to your property and how to sequence the work. Get My Home Upgrade Quote & Plan → Home Upgrade Specialist, Inc. is a licensed LA contractor for HVAC, solar, roofing, battery backup, Tesla Powerwall and EV charging. CSLB #1031989, #1055444. Serving Los Angeles County and Orange County.Who applies for the rebate: homeowner or contractor?
There is no single answer for every California incentive. Some programs require a participating contractor to reserve or submit incentive information, some require the homeowner to complete account or income verification, and others use a post-purchase application supported by contractor documents.
| Step | What to confirm before signing |
|---|---|
| Eligibility | Utility territory, income category if applicable, property type, equipment and active funding. |
| Reservation | Whether funds must be reserved before purchase or installation and who is authorized to make that reservation. |
| Documentation | Invoice, make/model, AHRI documentation when applicable, permit/final, serial numbers and contractor credentials. |
| Payee | Whether the incentive is paid to the customer, contractor, retailer or another approved party. |
| Final approval | Who submits the final application and what inspection or verification must occur before payment. |
The San Fernando Valley TECH pathway is a good example of why this matters. TECH currently says contractors interested in offering those incentives must complete required training and participation steps, while some income-qualified pathways can involve additional customer eligibility requirements. Check TECH Clean California's current San Fernando Valley status before quoting savings.
Best practice: show the project price separately from any estimated incentive and identify who is responsible for each application step. Never treat a rebate as guaranteed until the program administrator approves it.
Plan your home energy project with one team
Compare scope, equipment and utility rules in a single written plan built around your address.
Start My Home Plan