Last updated: May 30, 2026. Important 2026 update: the federal residential Clean Energy Credit (the 30% solar ITC under §25D) applied to systems placed in service through December 31, 2025 and is no longer available for new residential projects placed in service in 2026. The 30% figures and scenarios below reflect 2025 installs and the rules then in effect, kept for reference. State and utility programs (TECH Clean California, SGIP, LADWP/SCE, SoCalGas) and other provisions may still apply, subject to eligibility and current law. Home Upgrade Specialist is not a tax advisor — confirm current eligibility with your tax professional.

The LA rebate stack at a glance.

Five programs work together. Most LA contractors only file one or two. Home Upgrade Specialist files every rebate that applies to your install as part of the project — no extra paperwork on your end.

Federal incentives — solar ITC + IRA credits.

The federal layer is the biggest single piece of any LA rebate stack. The federal credit has changed over time and eligibility depends on current law and project details — the 30% figures below reflect residential systems placed in service through Dec 31, 2025 and are kept for reference. Two distinct programs:

1. The Federal Solar Investment Tax Credit (ITC)

Historically — for residential systems placed in service through December 31, 2025 — the ITC gave a 30% tax credit on the total installed cost of solar panels, solar-plus-battery systems, and stand-alone batteries at your primary residence. Under current law, this residential credit is no longer available for new projects placed in service in 2026; confirm the current position with your tax professional.

What qualifies:

• ✓Solar panel systems (residential and commercial)
• ✓Tesla Powerwall 3, Powerwall+, and Enphase IQ Battery (paired with solar or stand-alone)
• ✓Tesla Solar Roof (qualified portion as solar generating equipment)
• ✓Solar water heating systems
• ✓Installation labor and permitting included in the credit base

Example: A $40,000 solar + Powerwall install at a Pasadena home generates a $12,000 federal tax credit, applied against your federal tax liability for the install year. Carries forward to subsequent years if your liability is lower.

2. The IRA Heat Pump Tax Credit — up to $2,000

Separate from the solar ITC, the Inflation Reduction Act provides a 30% tax credit (capped at $2,000) for qualified heat pump HVAC installations. This applies annually — you can claim it on a heat pump in 2026 and a separate qualified upgrade in 2027.

What qualifies:

• ✓Air-source heat pumps (split system, ductless mini-split, ducted)
• ✓Heat pump water heaters (also eligible for SoCalGas rebate — see below)
• ✓Equipment must meet CEE highest-efficiency tier or Energy Star Most Efficient
• ✓Daikin, Bosch IDS, Mitsubishi M-Series, Trane XV20i — all qualifying models installed by Home Upgrade Specialist

Used together, the federal layer alone delivers substantial federal incentives on a typical whole-home upgrade, subject to eligibility and current law.

Some solar-and-battery projects may access federal clean-energy value through solar + battery financing with tax-credit program options, subject to eligibility, structure, and current law. Home Upgrade Specialist is not a tax advisor and this is not tax advice — consult your tax professional.

California state programs — TECH + SGIP.

3. TECH Clean California Heat Pump Rebate

TECH Clean California is the state’s flagship heat pump electrification program. Rebates range $1,000–$4,000 per residential heat pump installation in LA, with the higher tier reserved for income-qualified homeowners (under 80% of Area Median Income).

Key facts:

• ✓Rebate paid directly to the contractor — we deduct from your install cost (instant savings, no waiting)
• ✓Stacks with the federal IRA heat pump credit (no double-dip restriction)
• ✓Equipment must be on the TECH-approved list (Daikin, Bosch, Mitsubishi, Trane all qualified)
• ✓Replaces gas furnace, electric resistance, or old AC + furnace combo

4. Self-Generation Incentive Program (SGIP)

California’s SGIP provides battery storage rebates for residential customers in SCE, PG&E, and SDG&E territories. Most LA homes in LADWP territory are not eligible for SGIP directly, but SCE customers (parts of LA County, plus Burbank, Glendale, and Pasadena) can stack SGIP with the federal ITC on Tesla Powerwall or Enphase battery installs.

Equity Resiliency budget provides higher rebates for medically dependent households or homes in High Fire Threat Districts — common in Pacific Palisades, Altadena, and the foothill cities after the 2025 wildfires.

LA utility rebates — LADWP, SCE, SoCalGas.

Layer 3 is the most overlooked piece of the stack. Most LA homeowners don’t realize their utility has its own rebate program separate from federal and state. We file these for every customer.

5. LADWP residential incentives

Solar Incentive Program: LADWP offers solar incentives based on system size and energy output. Available for City of LA homes within LADWP service area (most of central, west, and northeast LA).

EV Charger Rebate: Up to $1,500 for installing a qualified Level 2 EV charger. Stacks with federal EV credits.

Heat Pump Water Heater Rebate: LADWP rebate of $1,000–$2,500 for replacing a standard water heater with a heat pump water heater. Stacks with SoCalGas (if you have both utilities).

6. SCE (Southern California Edison) rebates

SCE customers in LA County outside LADWP territory (most South Bay, Pasadena, Glendale, Burbank, San Fernando Valley areas not in LADWP) qualify for SCE residential rebates including the Charge Ready Home Program for EV chargers and various heat pump rebates.

7. SoCalGas heat pump water heater rebate — up to $3,800

This is the biggest single utility rebate available to LA homeowners. SoCalGas offers up to $3,800 for replacing your existing gas water heater with a qualified heat pump water heater. Why so big? SoCalGas is incentivized by California’s electrification mandate to migrate customers off gas — they pay you to leave.

This rebate stacks with:

• ✓Federal solar ITC (if the water heater is on solar) — the federal credit has changed over time and eligibility depends on current law and project details
• ✓IRA heat pump credit ($2,000 cap)
• ✓LADWP heat pump water heater rebate (if applicable)

Net result: a $7,000 heat pump water heater can drop to under $1,500 after all rebates.

3 LA stacking scenarios — real homes, real math.

These are real anonymized 2025 installs from Home Upgrade Specialist’s portfolio. Every dollar of rebate was filed by HUS on the homeowner’s behalf.

We file every rebate, every time.

Most LA contractors hand you a rebate form at the end of an install and say “good luck”. We don’t. Filing every applicable rebate is part of your Home Upgrade Specialist install — at no extra charge.

• 1Pre-install rebate audit — Before you commit to anything, we identify every program your home qualifies for and confirm dollar amounts.
• 2Instant rebates deducted from invoice — TECH Clean California and most utility rebates pay the contractor directly. You see the savings on your install invoice, not a year later.
• 3Tax credit paperwork at year-end — We send you a complete IRS Form 5695-ready document package by January 15 so your CPA has everything to claim the ITC and IRA credits.
• 4Utility rebate follow-up — LADWP, SCE, and SoCalGas rebates require post-install inspection and paperwork. We handle every step and confirm the rebate hits your account.
• 5No rebate, no charge — If a rebate we promised at quote time doesn’t materialize because of a program change, we credit the difference back to your invoice.

Stacking questions LA homeowners ask.

Rebate stacking by LA city

Rebate availability varies by utility service territory (LADWP vs SCE). Check rebate stacking for your specific city: