SoCalGas — the $3,800 heat pump rebate.
The biggest single utility rebate available to LA homeowners. SoCalGas pays you to replace gas water heater with electric heat pump. Plus other 2026 rebate programs.
The programs.
| Rebate Program | Amount | Notes |
|---|---|---|
| Heat Pump Water Heater Rebate | Up to $3,800 | The flagship rebate — paid as instant discount on install invoice |
| Smart Thermostat Rebate | Up to $50 | Stacks with LADWP/SCE thermostat rebates |
| High-Efficiency Furnace Rebate (legacy) | Up to $1,000 | Available but being phased out — heat pump path preferred |
| Pool/Spa Heater Rebate (legacy) | Up to $300 | Available for gas heater replacement |
| Building Insulation Rebates | Up to $700 | Attic, walls, ducts |
The $3,800 rebate explained.
SoCalGas Heat Pump Water Heater rebate is structured by efficiency tier:
- →Standard tier: $1,000-$2,000 for qualifying heat pump water heaters meeting Energy Star UEF ratings
- →Premium tier: $2,000-$3,000 for heat pump water heaters with UEF 4.0+ efficiency
- →Income-qualified maximum tier: Up to $3,800 for households under 80% Area Median Income
HUS verifies eligibility tier during the estimate. We always quote the maximum applicable tier you qualify for.
Why this rebate exists.
California is the only state where a gas utility actively pays customers to leave gas. The reason: California’s electrification mandate (under SB 100 and AB 32) requires the state to reach carbon neutrality by 2045. Water heating is a major share of residential gas use, and replacing gas water heaters with heat pumps is one of the highest-impact electrification moves.
SoCalGas is required by the CPUC (California Public Utilities Commission) to fund electrification rebates as part of its state-approved business plan. The $3,800 rebate represents what SoCalGas would otherwise spend on gas infrastructure maintenance for that customer over a multi-year period.
Stacking SoCalGas with everything else.
Real example — Sherman Oaks, 65-gal Rheem Performance Platinum heat pump water heater:
| Line Item | Amount |
|---|---|
| Heat pump water heater installed cost | $6,800 |
| SoCalGas $3,800 rebate | −$3,800 |
| LADWP heat pump water heater rebate | −$1,500 |
| IRA Heat Pump Tax Credit (federal) | −$2,000 |
| NET COST (effectively negative) | −$500 (free + $500 leftover credit) |
Free SoCalGas rebate audit.
SoCalGas-participating contractor. We file every application. Tesla Certified Premium Installer.
