HVAC · Powerwall · Solar

California & LA Home Upgrade Incentives Tracker

September 16, 2026 HVAC · Powerwall · Solar

On this page
Last verified: September 22, 2026. Incentive programs open, close, and change funding without much notice — this page is reviewed quarterly and dated so you know how fresh it is. Program rules control everything below; nothing here is a promise of eligibility or savings. Home Upgrade Specialist is not a tax advisor — consult your tax professional about anything tax-related.

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.
This is exactly why the state and utility programs below matter more in 2026 than they used to.

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 (Sept 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 single-family 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.
  • 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.

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 (equipment rebates change by program year) and its own solar compensation rules, which have historically been more favorable than the CPUC track — verified per project.

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.
(Municipal utilities in our service area — e.g. Burbank, Glendale, Pasadena, Anaheim — each have their own programs and solar rules. City-specific notes live on our city pages.)

What to do before counting any incentive

  1. Confirm the utility account: identify LADWP, SCE, SoCalGas or the applicable municipal utility from the current bill.
  2. Check the exact program and budget: verify current funding, waitlist or reservation status for the project address and customer category.
  3. Match the equipment before purchase: confirm model, efficiency tier, AHRI match, permit requirements and any contractor qualifications.
  4. Do not deduct unapproved incentives: use the gross project price until the responsible program issues the required written approval or reservation.
  5. Plan the project: use the Home Upgrade Specialist project planner to compare HVAC, solar, roofing and battery options.

Quick reference

Upgrade Programs to check (Sept 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)

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 free Home Upgrade Blueprint Planner maps which programs may apply to your property and how to sequence the work. Build My Free Blueprint → 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.

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
Call (833) 446-6387 Start My Plan