Heat Pump Rebates

Heat Pump Rebates

The Redwood Coast Energy Authority is offering heat pump rebates for both residential and commercial settings.

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 the air quality inside your home 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.

Rebates are first-come, first served. RCEA encourages the use of the Rebate Reservation Form. See details below.

Please direct questions to rebates@redwoodenergy.org or (707)269-1700

The rebate amounts listed above are for current RCEA electric customers. If you are not an RCEA customer or you are installing equipment other than what is listed above, please speak with an RCEA Energy Advisor to learn about other potential rebates. Energy Advisors can be reached by calling (707) 269-1700 or by submitting an Interest Form.
For a limited time, RCEA has TECH Clean California rebates worth $3,100 that are available for space heating or water heating heat pumps to replace propane, wood stoves or other secondary fuel sources (not natural gas, but our other rebate cover those). These can be paired with RCEA rebates to increase total incentives.  Contact one of RCEA’s Energy Advisors to find out which contractors are eligible for TECH Clean California opportunities.
flyer with photo of Tom Wheeler next to his heat pump and details about the rebate

Heat Pump FAQs


General description:


About Heat Pump Space Heaters

Replacing your electric resistance or gas-fired space heater with an electric heat pump space heater saves energy and reduces your contribution to the emission of greenhouse gases. Heat pump space heaters are many times more efficient than a conventional electric resistance heater. 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 ductless 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; this type of heat pump can be designed to work well in homes with existing ductwork from previous space heating systems.
These heat pump space heater rebates listed are for both commercial and residential customers. Please review the eligibility metrics 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.

About Heat Pump Water Heaters

Replacing your electric resistance or gas-fired water heater with an electric heat pump water heater saves energy and reduces your contribution to the emission of greenhouse gases. 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 transfer 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.

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.
  • “Smart” Water Heater: An appliance is labeled “Smart” when it can be programmed or controlled remotely through a wi-fi connection or other wireless means. RCEA offers an additional rebate for these systems.
  • 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.

HVAC Energy Efficiency Tips from PG&E:

Tip #1: Carefully assess the area around each vent for proper ventilation.

Is air flowing from the vent circulating freely throughout the room? If there are obstructions that prevent adequate airflow, such as cabinetry or drapes, move them to allow for clear circulation. Don’t keep vents closed as an effort to save energy. Doing so can change the way air is distributed and cause an imbalance to the operation of the HVAC system.

Tips #2: Prevent dust and dirt from building up.

Replace air filters (or clean them if they’re reusable) monthly, especially during peak heating and cooling seasons. Keeping air filters clean can prevent dust and dirt from building up in the system. When dirt builds up, it can lead to expensive maintenance repairs or the need for a new system. Watch for filters that gather excessive dust. This may be a sign of potential leaks in the duct system.

Tip #3: Make sure all the ducts that run throughout your building have duct sealant or metal-backed (foil) tape over the seams and connections.

You can work with a contractor to wrap the ducts in insulation to keep them from getting hot in the summer or cold in the winter. It’s now possible for contractors to perform verified duct sealing using a special fan to test duct system leakage before and after sealing efforts have been made.

Tip #4: Implement a consistent HVAC maintenance schedule.

Not all businesses require the same needs from their HVAC systems. Customized commercial HVAC maintenance plans may be offered by your preferred contractor, which will provide the specific care your system needs to boost performance.

Tips #5: Use heat-recovery technology to transfer energy from exhaust air to incoming outside air.

This greatly reduces the energy that’s required to heat or cool incoming air. A qualified contractor can educate customers on available recovery technologies. For example, an energy recovery ventilator (ERV) can be a suitable solution for maintaining comfortable temperature, depending on area location and climate.

Tip #6: Install advanced control sensors to improve a ventilation system’s operating power for energy efficiency.

These controls can count the number of people in a room and then adjust the heat and air conditioning accordingly. When the sensors are integrated into a building’s HVAC system, the advanced controls can reduce energy use by almost 40%.

Tip #7: Replace your old, worn-out HVAC.

If your HVAC system is more than 10 years old, there’s a good chance you’re spending too much to heat and cool your building. Have a professional contractor give your HVAC system a checkup and see if you should upgrade to high-efficiency ENERGY STAR®-qualified equipment.

Residential

Heat pump in garden by house

Residential Mini Split Heat Pump

$500 per system

+ $150 per ton

Replace any existing unit

 Qualified Replacement Units: Mini-Split Heat Pump SEER 17 HSPF 9.4 or higher efficiency; Less than 65,000 Btu/hr cooling capacity

heat pumps

Residential Central Heat Pump

$500 per system

+$150 per ton

Replace any existing unit

Qualified Replacement Units: Residential Central Heat Pump >= 17 SEER and HSPS >= 9.4

hp water heater

Heat Pump Water Heater

$600 per each

Replace any existing unit

Qualified Replacement Units: HP water heater 45-55 gal UEF >=3.31

residential-electrical-panel

Panel Upgrade

$500 per panel

Upgrade Panel to accommodate any heat pump measure if converting from gas unit to electric

Commercial

hp water heater

Commercial Heat Pump Water Heater

$600 per system

Replace any existing units

Qualified Replacement Units:

HP Water Heater 45-55 gal UEF >= 3.31

HP Water Heater 55-75 gal UEF >= 3.33

HP Water Heater >75 gal UEF >= 3.42

Packaged heat pump

Commercial Packaged or Split Heat Pump

$600 per system

$200 per ton

If replacing existing Split or Packaged Unit with Natural gas furnace and AC; 65-134 kBtu/h qualified replacement units are IEER Rated Packaged Heat Pump 65-134 kBtu/h 14.0 IEER or higher efficiency.

If replacing existing Split or Packaged Unit with Natural gas furnace and AC; < 65 kBtu/h qualified replacement units are SEER Rated Packaged or Split Heat Pump < 65  kBtu/h >= 17 SEER

Residential and Commercial

smart water heater

Smart Water Heater Kicker

$200 per each 

Add on to Heat Pump water heater measure.

For heat pump water heaters that can be controlled and monitored remotely via smart phone or computer. This is an add-on to the heat pump water heater measure.

Packaged terminal heat pump1

Packaged Terminal Heat Pump

$100 per each 

$45 per ton

Replace any existing units

Qualified Replacement Units: <= 7 kBtu/h Unit, 14.28 EER or better.

>7 <=15 kBtu/h high efficiency package terminal HP >12.84 EER

>15 >= 24 kBtu/h high efficiency package terminal HP > 11.4 EER

Livingroom with heat pump on wall and a model of an osprey hanging

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Eureka, CA 95501

(707) 269-1700

(800) 931-7232

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