Rebates and incentives can significantly reduce the cost of efficient HVAC equipment. Here are programs available to Bay Area homeowners.
Federal Tax Credits
The Inflation Reduction Act provides substantial tax credits for energy-efficient home improvements:
Heat Pumps: Up to $2,000 tax credit for qualified heat pump systems. This applies to air-source heat pumps and mini-splits meeting efficiency requirements.
Other HVAC: Up to $600 tax credit for other qualifying HVAC equipment including certain furnaces and central AC.
These are tax credits, not deductions, reducing your tax bill dollar-for-dollar. Consult a tax professional for eligibility details.
PG&E Rebates
PG&E offers rebates for residential HVAC equipment:
Heat pump water heaters, heat pump HVAC, and other efficient equipment may qualify for rebates. Amounts and requirements change periodically.
Visit PG&E's website or call to confirm current offers before purchasing. Some programs require pre-approval.
BayREN Programs
The Bay Area Regional Energy Network (BayREN) offers additional rebates:
Home+ program provides rebates for comprehensive home upgrades including HVAC. This program looks at the whole house approach.
Single-family and multi-family programs have different requirements and incentives.
Local Programs
Some cities and counties offer additional incentives. Check with your local government for: - Building permit fee reductions - Property tax exclusions for solar and efficiency - Special financing programs
Combining Incentives
Many incentives can be combined: - Federal tax credit + utility rebate + local incentive
Work with your contractor to identify all available programs. Some require specific documentation or pre-approval.
Timing Matters
Incentive programs change over time: - Budget allocations can run out - Program rules get updated - New programs launch
Check current requirements before purchasing. What was available last year may have changed.
Documentation Requirements
Keep records for rebate applications and tax credits: - Contractor invoices - Equipment model numbers and specifications - Proof of payment - Before and after energy usage (some programs)
Your contractor should provide AHRI certificates confirming equipment efficiency ratings.
Beware of Scams
Legitimate rebates come from utilities and government programs, not contractors. Be suspicious of: - Contractors offering direct rebate checks - Pressure to act immediately before program ends - Promises that seem too good
Verify all rebate claims independently through official program websites.