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Santa Barbara Clean Energy's Home Electrification Accelerator Program (HEAP) can help you make the switch to super-efficient, clean, and safe heat pump technology. Take advantage of our incentives, advising service, free permitting, and helpful project resources to make home electrification easier, faster, and more affordable.

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Available Incentives

  • Heat Pump Water Heater (HPWH)
  • Heat Pump Heating, Ventilation, and Air Conditioning (HVAC)
  • Associated Electrical Work

Incentive Levels

Heat Pump Water Heater 
Upgrade MeasuresBase Incentive Income Qualified Incentive 
Replacing Electric Resistance Water Heater$500$1,500
Replacing Gas Water Heater$2,500$3,500
Associated Electrical WorkUp to $2,000Up to $4,000
Heat Pump HVAC
Upgrade Measures Base Incentive Income Qualified Incentive 
Replacing Electric Resistance Heater/Furnace $1,000 $2,000 
Replacing Gas Furnace $2,500 $3,500 
Associated Electrical WorkUp to $2,000Up to $4,000

How to Apply

1
Reserve Incentive
  1. Submit Reservation Application
  2. To complete your incentive reservation, you will need to provide your SBCE account number (from your energy bill) and upload a contractor estimate.
  3. SBCE will review your application and notify you of the approval status. Once notified, you will have 120 days to complete your project.
  4. See Project Resources below to help find all currently available incentives/rebates, find local qualified contractors, take advantage of our Home Electrification Advisor service, and select the right permit for your project.
2
Apply for Permit
  1. Make sure to apply for the right building permit. While anyone can pull permits, contractors are most familiar with the permitting and inspection process and submission requirements.
  2. See Permitting - What You Need to Know section below for permitting guidance.
3
Complete your Project
  1. Projects must be fully installed and pass inspection to be complete.
4
Claim Your Incentive
  1. Submit Claim Form, you will need to provide itemized invoices, photo verification of BOTH decommissioned and newly installed equipment, and proof of permitting.
  2. SBCE will review the claim for eligibility and notify you of the approval status.  Once approved, incentives will be issued via check to you or your contractor, if specified. Please anticipate approximately four weeks to receive payment.

Permitting - What You Need to Know

The City of Santa Barbara’s Community Development Department, in partnership with Santa Barbara Clean Energy (SBCE), has streamlined the permitting process for one- and two-unit residential heat pump water heater (HPWH) and heat pump heating, ventilation, and air conditioning (HP HVAC) system replacements. On-Demand Permits are now available for most properties and projects in the City of Santa Barbara.   

Applicants will receive instant approval and no upfront fees for replacing gas or electric resistance technologies with high-efficiency, all-electric heat pump technologies. 

Permit streamlining improves customer service, reduces processing time, saves applicants money, and supports the City’s goal of reaching carbon neutrality by 2035 by facilitating home electrification projects. 

Heat Pump Water Heater (HPWH) Permitting 

On-Demand Permits are available for one- and two-unit residential HPWH replacement projects throughout the City. Please note that to be eligible for a free On-Demand Permit, HPWHs must be installed in the same location as the existing gas or electric resistance water heater.  

Residents and contractors apply for all permits online through the City’s online permitting portal, Accela. An Accela Citizen Access (ACA) account is required. 

Before applying, applicants are encouraged to review all permit requirements, confirm project eligibility, and consult the Building & Safety Permit Counter to answer any questions regarding documentation, installation, and inspection expectations. 

Heat Pump HVAC (HP HVAC) Permitting 

The former Express Permit for one- and two-unit residential HP HVAC system replacements has now transitioned to an On‑Demand Permit for properties located within the Inland Zone.  

Please note that properties located within the Coastal Zone or designated as a Historic Resource are not eligible for the On‑Demand Permit and must continue to use the Express Permit option by selecting the "mechanical application" when applying. 

SBCE will provide reimbursement of up to $820 to SBCE customers who apply for Express Mechanical permit incentive along with their HP HVAC incentive.  

To determine if a property is eligible for a HP HVAC On-Demand Permit, please use our GIS Lookup Tool. Visitors only need to type in an address or click a parcel within the map. The result of the search will include which permit should be applied for based on property location. 

Residents and contractors apply for all permits online through the City’s online permitting portal, Accela. An Accela Citizen Access (ACA) account is required. 

Review all permit requirements, confirm project eligibility, and consult the HVAC Permit Checklist for guidance on documentation, installation, and inspection expectations. 

For more information on permitting, please contact Building & Safety at (805) 564-5485, CDBuildingCode@SantaBarbaraCA.gov, or by visiting the Building & Safety Permit Counter at 630 Garden Street.

Helpful Project Resources

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