Heat Pumps

Enjoy year-round comfort and savings — and get cash back — with a heat pump. Heat pumps move heat in or out of your home — for heating or cooling, based on the season.

Replace your gas furnace or conventional air conditioning with a more efficient heat pump for energy savings. Because they move heat rather than generating it, heat pumps help lower heating and cooling costs while delivering reliable year-round comfort. 


Get cash back on a heat pump installation when you work with a BayREN Participating Contractor.

Energy ratings (AFUE for gas appliances, SEER for electric) indicate how efficient the equipment is. The more efficient your equipment, the more energy you save and the lower your heating and cooling costs will be.

See which upgrades qualify and how much you can earn, based on the energy efficiency of your new equipment:

Program and Rebate Detail
Heating and Cooling Upgrades Rebates

Heat Pump (Fuel Substitution) 

High efficiency heat pump ≥ 17 SEER, SEER2 16, HSPF 9.4, HSPF2 8.0

Must replace existing central natural gas furnace with ducted direct exchange (non mini-split) heat pump. Cannot replace an existing electric heating system.  


Heat Pump
High efficiency heat pump ≥ 17 SEER, SEER2 16, HSPF 9.4, HSPF2 8.0

Must replace entire load associated with electric heating system or heat pump. 


Ductless Heat Pump (Fuel Substitution) 

High efficiency heat pump ≥ 17 SEER, SEER2 16, HSPF 9.4, HSPF2 8.0

Replace wall/floor furnace with a ductless mini-split heat pump. Cannot replace an existing electric heating system.  


Combustion Appliance Safety (CAS) test-out 

CAS test-out required if original unit shared an exhaust/flue pipe with a gas appliance that is left in operation. Not available as a standalone rebate. Only one per service address.

$100 bonus rebate

*Rebates were updated as of August 1st, 2023. Learn more. 

  • Rebates are available on a first-come, first-served basis and available for qualifying Bay Area residents with homes built in 2016 or earlier.
  • Customers who receive only one, electric or gas, service from PG&E can apply for measures that correspond to the services received.
  • Customers must complete eligible improvements with a BayREN Participating Contractor in order to receive a rebate (except for electrification appliance measures).
  • Customer must not have previously received a rebate for the same product or equipment from more than one energy-efficiency program offering rebates, financing or other rebates funded with PG&E ratepayer dollars within the past three years for O&M measures and eight years for building shell, HVAC and water heating measures.
  • One rebate is offered per heating/cooling system per address. 
  • Rebates are capped at $4,000 per eligible customer over an eight-year period. Individual measure rebates may not exceed the measure cost.
How to Apply
  • Your BayREN Participating Contractor will assist you through the rebate process to make sure you get the best price on your projects. 
  • To get started, contact your Home Energy Advisor for information about qualifying projects. Then hire a BayREN Participating Contractor and get your project started!
  • Your BayREN contractor will work with you to determine the scope and budget of your project. They will be able to tell you which rebates your project qualifies for.
  • Your contractor will create documentation of your project before and after it is completed. Once the project is completed, the contractor will submit program documentation to BayREN on your behalf. 
  • After your documentation has been submitted, you can track the progress of your rebate online.
Get Started

Contact a Home Energy Advisor to learn more about home heating and cooling projects and rebates.

Find a Contractor

Have you chosen your project? Find a BayREN Participating Contractor in your area.

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