Heat Pump Water Heater Rebate Reduction from SMUD Puts Pressure on Customers

SMUD’s rebate structure is one of the most generous ones around, especially compared to those available from PG&E.  But those rewards for going green won’t be around forever. 

SMUD’s Rebate Program Manager, Michael Corbett, in coordination with Efficiency First California, has developed a fantastic way to take care of emergency appliance replacements individually while still qualifying for the rebates.  The replacements include water heaters, HVAC systems, ductwork, insulation, and making your home “electric ready.”  In the past, the $13,000 total in rebates required replacement of all these items at once.  You’re now able to take care of these one at a time.

Rebates Won’t Be Around Forever

As the timeline shortens for mandatory building code changes in new homes, utility companies won’t have to provide these great rebates.  The heat pump water heater rebate reduction is an example of that.  SMUD encourages participating contractors like Fox Family Heating and Air to let folks know these rebates won’t be around forever.  They should take advantage of them before funds run out.

Everyone involved in SMUD’s new rebate structure has seen success.  In fact, in just two years, the volume of heat pump water heater installations through SMUD’s program has increased by 1,000%.  It’s been so successful, the funds to support these incentives are running out! 

SMUD Rebate Reductions

Starting April 1, 2020, the rebate for changing your gas water heater to a heat pump all-electric water heater drops by $500.  The $3,000 rebate will now be $2,500.  The $1,000 rebate for upgrading your electric water heater to a heat pump style water heater will now be $500.

Applications must be submitted and approved by March 31st, 2020 to receive the previous $3,000 or $1,000 SMUD rebate.  The utility company processes rebates on a first-come, first-served basis. Your project must meet the efficiency standards of the program as well as other terms and conditions. These include using a participating SMUD contractor and pulling a permit with the city or county.

For questions regarding the program, please email [email protected] or call 916-209-5117. For questions about your project or to schedule an installation, contact Fox Family — we’re ready to help!

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