Heat Pump Rebates
The Redwood Coast Energy Authority is offering heat pump rebates for both residential and commercial RCEA customers.
Rebate offerings are dependent on available funding. Amounts and offerings may change at any time. Rebate amount is determined by the values listed on the RCEA webpage on the date the complete application and all supplemental documents are received.
The reasons why heat pumps can be such a good investment are abundant. They are an efficient way to use electricity to generate heat, more efficient than other types of electric heating because they move heat rather than create it. They can also reduce greenhouse gas emissions and improve air quality by removing the burning of fossil fuels. The same unit can be used as a heater or air conditioner, which can save money on both maintenance and repairs. Heat pumps can also be paired with solar panels to offset operating costs. Talk to one of our Energy Advisors about all the ways heat pumps might be right for you.
To reach an Energy Advisor:
- Call (707) 269-1700
- Submit an Interest Form
- Solicitud del Programa de Soluciones Energeticas
- Email rebates@redwoodenergy.org
Rebates are first-come, first-served while funding lasts. Customers may reserve Heat Pump Rebates using the Rebate Reservation form. Equipment Rebates and Heat Pump Rebates combined cannot exceed $3000 for residential customers or $5000 for commercial customers in any calendar year for the same site address.
RCEA Heat Pump Rebate Catalog – 2023
How to Apply
Terms and Conditions for Rebates
- Review the Terms and Conditions
- Customer must complete all permits for Heat Pump Rebates and Panel Upsize Add-On Rebate, except where not required by jurisdiction. Permit numbers are required on applications.
Eligibility Criteria
To ensure rebate eligibility, review the eligibility criteria listed below for equipment before your purchase. For questions about equipment eligibility, contact RCEA at rebates@redwoodenergy.org or 707-269-1700.
Optional Heat Pump Rebate Reservation
- If you would like to reserve your rebate for 90 days, fill out the Heat Pump Rebate Reservation
- Please submit it via email to rebates@redwoodenergy.org or mail to Redwood Coast Energy Authority, Attn: Heat Pump Rebates, 633 3rd Street, Eureka, CA 95501.
Heat Pump Rebate Application Process
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Complete, sign, and submit the Heat Pump Rebate Application through our website.
- Please upload a photo or scanned copy of your paid invoice/receipt listing the equipment purchased, quantities, cost, and date with your application submission.
- If you are replacing a natural gas or propane unit you must also fill out the Electrification Supplemental Questionnaire, save it to your computer, and upload it with your application.
- If you have questions or need clarification, please email rebates@redwoodenergy.org
- You will receive email confirmation that your submission was received within 3 business days. You will be notified of any missing information or documentation required to complete your submission.
- Once your application is approved you will receive a confirmation email along with confirmation of the total rebate amount.
- Rebate payments will be made by check and will be issued within 30 business days following application approval.
Alternative submission options
- Customers may download a PDF version of the application, fill it out/sign, and submit it via email to rebates@redwoodenergy.org or mail to 633 3rd Street, Eureka, CA 95501. Be sure to include a copy of your invoice/receipt and the Electrification Supplemental Questionnaire if you are replacing a natural gas or propane unit.
- Customers may also call RCEA at 707-269-1700 to request a paper Rebate Application.
Formularios en español

Heat Pump Water Heater Rebates
Replacing your electric resistance or gas-fired water heater with an electric heat pump water heater saves energy and reduces greenhouse gas emissions. Heat pump water heaters are many times more efficient than a conventional electric resistance water heater. This is because, rather than generating heat using electricity, heat pump water heaters use electricity to move heat from the surrounding air, transferring that heat into water in an enclosed tank. This process is very similar to the way a refrigerator works but in reverse.
Heat pump water heaters also come with control panels that allow you to switch between operating modes based on your needs. When hot water demand is high, your hot water needs can be supplemented with standard electric resistance heat. When hot water demand returns to normal, the efficient heat pump process resumes. Some units also allow for a “vacation” mode that allows you to put your hot water heater in a sleep setting when you know it won’t be used. “Smart” water heaters expand user control and make it easier to program your system to your needs, both remotely through your smartphone or directly on the system itself.
IMPORTANT NOTE: Some heat pump water heaters are equipped to participate in Demand Response Programs. Customers enrolling in Demand Response can earn money and support the overall grid reliability without fear of the tank going cold. For more information, see our Demand Response Providers page.
Detailed below are the available heat pump water heater rebates for both commercial and residential customers. Please review the eligibility metrics carefully and contact an RCEA representative if you have any questions.
Important Terms and Concepts
- Uniform Energy Factor (UEF): A uniform metric of the energy efficiency of equipment established by the Department of Energy. This will be a determining metric of the eligibility of your heat pump water heater for rebates. This is a standard metric and can be found on the specifications sheet of any heat pump water heater unit.
- Gallons: This refers to the capacity in gallons of your water heater. This will be a determining metric of the eligibility of your heat pump water heater for rebates.
- Demand Response Ready: An appliance that can be controlled remotely by a Demand Response Provider in times when the grid is stressed.
Heat Pump Water Heater Rebates
Building Type | Description | Rebate | Rebate Code |
---|---|---|---|
Residential | Residential Heat Pump Water Heater
Heat Pump Water Heater with Uniform Energy Factor (UEF) = 3.30 or greater |
$600 | HP001 |
Commercial | Commercial Heat Pump Water Heater Heat Pump Water Heater in commercial facility with Uniform Energy Factor (UEF) = 3.30 or greater |
$600 | HP007 |
Residential or Commercial | Electrification Add-On* Water Heater being replaced used natural gas or propane. Must submit Electrification Supplemental Questionnaire and verification. |
$100 | HP012 |
Residential | Panel Upsize Add-On** Equipment being replaced used natural gas or propane. Must submit Electrification Supplemental Questionnaire and verification. The main electric panel and electric service connection has been upsized to 200 amps. The panel upsize was required for electrification upgrades. |
$500 | HP005 |
*Electrification Add-On Specifications
- Available as an add on for each approved RCEA Heat Pump Rebate or Heat Pump Water Heater Rebate for residential and commercial customers.
- Existing heating unit or water heater being replaced used natural gas or propane and has been removed from service.
- Additions and new construction are not eligible.
- Customer has submitted a completed Electrification Supplemental Questionnaire and verification.
**Panel Upsize Add-On Specifications
- Available as an Add-on Rebate to an approved RCEA Heat Pump Rebate, Heat Pump Water Heater Rebate, or Electric Vehicle Charging Equipment Rebate for residential customers.
- Existing main residential electric panel less than 200 amp capacity.
- Additions and new construction are not eligible.
- New upsized main residential electric panel and PG&E service connection has 200 amp capacity
- Equipment must pass municipal inspections and is connected to the grid by PG&E.
- Limit 1 Panel Upsize Add-On Rebate per Meter for all time.
- Customer has submitted a completed Electrification Supplemental Questionnaire and verification.
Demand Response
Some heat pump water heaters are equipped to participate in Demand Response Programs. Customers enrolling in Demand Response can earn money and support the overall grid reliability without fear of the tank going cold. For more information, see our Demand Response Providers page.

Heat Pump Space Heating Rebates
Replacing your electric resistance or gas-fired space heater with an electric heat pump space heater saves energy and reduces greenhouse gas emissions. Heat pump space heaters are many times more efficient than a conventional electric resistance heaters. Like heat pump water heaters, a heat pump space heater uses the same technology as a refrigerator or air conditioner to produce heat at one end and cooling on the other.
Heat pumps can be installed as either ducted or ductless systems. Mini-split heat pumps are a common type of heat pump system, in which an outdoor condensing unit is connected via refrigerant lines to one or more indoor “heads” or air-handlers that are mounted on the interior walls of the house. Another type of ductless heat pump is a through-the-wall packaged unit, commonly seen in hotels. Ducted heat pumps move air throughout the space using ductwork. Existing furnace ductwork may not be viable for use with heat pumps due to different design requirements or duct system condition, ask your contractor to evaluate. It is important to seal and insulate your ducts to ensure system efficiency. Talk with your contractor about proper equipment sizing. Improperly sized systems will be less efficient, costing you money and providing less comfort.
Please review the eligibility requirements carefully and contact an RCEA representative if you have any questions.
Important Terms
- Capacity (in Tons): A ton, or tonnage, refers to the cooling capacity of a heat pump system and is typically used to gauge the size of a system. Tonnage is measured in British Thermal Units (BTU), so look for that metric as you look at the specifications for your system. One Ton is equal to 12,000 BTU.
- Heating Seasonal Performance Factor (HSPF): This metric describes the efficiency of the heating component of your heat pump.
- Seasonal Energy Efficiency Ratio (SEER): This metric is a ratio between the cooling output of a heat pump and its energy use. It allows heat pumps to be compared based on the energy efficiency of their cooling capacity over a typical cooling season. It is a standard metric established by the Department of Energy.
- Energy Efficiency Ratio (EER): This metric is similar to SEER in that it measures the energy efficiency of the cooling capacity of a heat pump, but only at one temperature, whereas SEER takes varying temperatures into consideration.
- Integrated Energy Efficiency Ratio (IEER): This metric integrates the energy efficiency ratio of the equipment, allowing the unit’s efficiency to be measured and compared at different performance levels.
Residential
- Ductless Heat Pump: System has head units mounted inside on walls or ceilings to deliver heat/ cooling without ductwork. May have one or multiple indoor head units.
- Ducted Heat Pump: System uses air handler and ducts to direct air throughout space. Systems that include both indoor head units and air handler/ ducts are considered Ducted Heat Pumps.
- Packaged Terminal Heat Pump: All system components (condenser and coil) are combined in one unit. These are often seen in hotel rooms on exterior walls.
Commercial
- Packaged Heat Pump: All system components (condenser and coil) are combined in one unit and ducts run throughout building.
- Spilt Heat Pump: System has an outdoor unit and indoor unit. System can be ducted or ductless.
- Packaged Terminal Heat Pump: All system components (condenser and coil) are combined in one unit. These are often seen in hotel rooms on exterior walls.
- Air-to-Water (Hydronic) Heat Pump: Typical air source heat pumps take heat from outside air using a refrigerant. ATW heat pumps transfer this heat to a fluid outdoors – typically water or a mix of water and glycol – and transport this fluid into a home to provide space heating through hydronic distribution (e.g., radiant floor, radiator, or baseboard water circulation systems).
Heat Pump Rebates
Building Type | Description | Rebate | Rebate Code |
---|---|---|---|
Residential | Residential Ductless Heat Pump SEER = 15 and HSPF = 9.0 or greater, less than 65kBtu/hr cooling capacity |
$500 per system & $150 per ton | HP002 |
Residential Ducted Heat Pump SEER = 15 and HSPF = 9.0 or greater |
$500 per system & $150 per ton | HP003 | |
Residential Packaged Terminal Heat Pump Less than 7kBtu/hr cooling capacity: EER = 11.17 or higher or 7kBtu/hr to 15 kBtu/hr cooling capacity: EER =10.15 or higher or Greater than 15 kBtu/hr cooling capacity: EER = 9.13 or higher |
$100 per system & $45 per ton | HP009 | |
Air-to-Water Heat Pump Must be on the Energy Star Qualified Products list: Energy Star Air-to-Water Heat Pump QPL Size in tons is based on the heating capacity of the system |
$500 per system & $150 per ton) | HP014 | |
Panel Upsize Add-On* Heater being replaced used natural gas or propane. Must submit Electrification Supplemental Questionnaire and verification. The main electric panel and electric service connection has been upsized to 200 amps. The panel upsize was required for electrification upgrades. |
$500 | HP005 | |
Residential or Commercial | Electrification Add-On** Heater being replaced used natural gas or propane. Must submit Electrification Supplemental Questionnaire and verification. |
$100 | HP012 |
Commercial |
Commercial Packaged Heat Pump or Split Heat Pump IEER-Rated Packaged Heat Pump between 65-134 kBtu/hr of cooling capacity: IEER = 14 or greater or SEER-Rated Packaged or Split Heat Pump less than 65 kBtu/hr of cooling capacity: SEER = 15 and HSPF = 8.2 or greater |
$600 per system & $200 per ton | HP008 |
Commercial Packaged Terminal Heat Pump Less than 7kBtu/hr cooling capacity: EER = 11.17 or higher or 7kBtu/hr to 15 kBtu/hr cooling capacity: EER = 10.15 or higher or Greater than 15 kBtu/hr cooling capacity: EER = 9.13 or higher |
$100 per system & $45 per ton | HP010 | |
Air-to-Water Heat Pump Must be on the Energy Star Qualified Products list: Energy Star Air-to-Water Heat Pump QPL Size in tons is based on the heating capacity of the system |
$600 per system & $250 per ton) | HP014 |
* Panel Upsize Add-On Specifications
- Available as an Add-on Rebate to an approved RCEA Heat Pump Rebate, Heat Pump Water Heater Rebate, or Electric Vehicle Charging Equipment Rebate for residential customers.
- Existing main residential electric panel less than 200 amp capacity.
- Additions and new construction are not eligible.
- New upsized main residential electric panel and PG&E service connection has 200 amp capacity.
- Permit required.
- Equipment must pass municipal inspections and is connected to the grid by PG&E.
- Limit 1 Panel Upsize Add-On Rebate per Meter for all time.
- Customer has submitted a completed Electrification Supplemental Questionnaire and verification. Rebates
**Electrification Add-On Specifications
- Available as an add on for each approved RCEA Heat Pump Rebate or Heat Pump Water Heater Rebate for residential and commercial customers.
- Existing heating unit or water heater being replaced used natural gas or propane and has been removed from service.
- Additions and new construction are not eligible.
- Customer has submitted a completed Electrification Supplemental Questionnaire and verification.
